What Is Startup?
A startup is a venture that is initiated by its founders around an idea or a problem with a potential for significant business opportunity and impact. Forbes describes startups as young companies founded to develop a unique product or service, bring it to market and make it irresistible and irreplaceable for customers.
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Features of a startup
Compared to traditional businesses, startups are designed to grow fast. They have business ideas that could sell to a very large market, which is not the same for most businesses. Apart from having different ways of thinking about “growth,” startups seek financial investment differently than most small business operations. Startups tend to rely on capital that comes via angel investors or venture capital firms, while small business operations may rely on loans and grants.
How To Set Up A Startup
Determine your problem
Startups revolve around solving a problem for society, not necessarily about doing something just to earn profits. In fact, the success of a startup is hinged on how well a certain problem is addressed. The problem, in this case, may be a gap in the market or a problem not entirely solved by a competitor. In order to validate your desire to establish a startup, you need to begin with knowing the problem to solve.
Find out the resources available
Establishing a startup is not for the feeble-minded, you will be forced to learn through opportunities and serious challenges that may ruffle your feather. The most important goal to be achieved only happens when you know the problem is solved consistently. By resources, you will need to assess your skills and tendencies. You will need to decide if you are passionate, creative, motivated, and self-disciplined enough. Entrepreneurs also have to be adaptable, observant, and willing to take risks.
Understand the market and industry landscape
Provided you venture into a new market, you might need to compare the landscape and operations of a similar type of market. For an already crowded industry, you will have to analyse the market competitors, trends and innovation not excluding the possible lacuna in problems already solved. The goal of doing this is to establish whether there is ample opportunity within the industry to support your entrepreneurial goals.
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Refine and recreate your business plan
Having understood the market or industrial make-up relating to your idea, you should gain an inkling of how best to carve your business plan. Ensure to test your idea’s desirability, feasibility, sustainability, and timeliness.
Find investors
To impress investors, you will need a pitch deck or presentation draft detailing your profile, your startup idea and investment potentials. However, be prepared to face potential pitfalls, rejection along the way.
Build your team
At the founding stage of a startup, your first team decision is your co-founders. You will need co-founders who are experienced and versed enough to fill up the gaps in your skills and resources. They become a balance in managerial resources. Do not completely rely on your co-founding team. You might need to consult advisors on other business and legal matters.
Establish a business structure
Startups begin as an idea, or a hobby, or experimentation to test and validate an idea. So, they could assume the set up sole proprietorships and general partnership because they are informal business structures. As the business scales, overtime, structures might be replaced with a much formal type.
Create a Brand
Starting a brand these days is very cost-effective and convenient. You can start creating a brand by establishing a catchy name, logo, social media presence to engage your public.
After taking all of the steps highlighted above, you are free to launch and scale.
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