How to create a startup
Creating a successful startup requires more than just a great idea; it demands a client-oriented approach, thorough market research, and…
How to create a startup
According to the statistics, 95% of entrepreneurs have at least a bachelor’s degree. However, it requires a different type of knowledge to create a successful startup. The study of Harvard Business School revealed that the chance of success increases by 30% if the founder had a prosperous business before. It means that we overrate the role of success in entrepreneurship. Experienced successful entrepreneurs are more likely to succeed than the first-time startup founders or those who failed in the past. It shows the importance of skills for a growing company.
The statistics assert that 90% of startups fail. Those who keep on trying despite the discouraging figures should do everything possible not to get into the list of failed startups. If skills are helpful, we should focus on their acquisition. What else should we do to create a successful business?
Find a good idea and develop it.
It all begins with the idea, which is like a seed for a future startup. It should be interesting, and, preferably, innovative to create a unique offer in the market. It would be great to find the areas not discovered by existing companies yet, which is a usual strategy for established professionals. Working in their sphere, they run across the shortage of some product or come up with a new vision on it.
Usually, people think that it’s enough to have a great idea to become successful. However, the development of an idea and development of a company are two different things. Many possessors of fantastic ideas can’t carry their concepts to a successful end. A great idea is only a starting point of a long way. You can achieve an excellent result only if you do everything right.
Apply a client-oriented approach.
Think about the end-user when you come up with the idea for your startup. It should include a solution to the problem of consumers. In this case, it will become popular.
Explore the market.
Explore the market before you start a company. Those who spend much time and effort on it get a comprehensive picture allowing them to make the right decisions. It would be ideal to launch a startup in your professional sphere. Those who know all ins and outs of the industry tend to succeed more often. There can be many pitfalls in the process of creation that are easily avoided by those who are savvy.
It can be helpful to analyze the similar products and strategies of your competitors. Find out how your business rivals reached their customers. Compare your product with other solutions.
Make a plan before you move forward.
Planning is essential for the success of the enterprise. It’s a kind of strategic tool for those who start a company. A business plan forces us into disciplined thinking. It helps to focus on the definite steps we should take to achieve the result. Sometimes even excellent ideas fall apart when you try to formulate or execute a production schedule, so the planning stage reveals all flaws. The procedure can also be useful for:
- Maintaining a business focus;
A startup should make a profit not to fail. Some entrepreneurs love their idea so much that they are ready to spend extra resources for its perfect execution. A business plan doesn’t allow to shift the focus, thus protecting a startup from failure.
- Getting funds from a bank or institutional investors;
A person needs a written document to raise funds. It’s not enough to provide a mere description of the concept. Approximately one-third of the companies with a business plan can get a loan, and another one-third receive the investment.
- Making crucial decisions;
You get a better understanding of all processes as you describe a plan, thinking about the financial, technology, management aspects, and human resource planning. Detailed planning helps to avoid mistakes when you make important decisions that affect the future of the company.
According to the studies, 64% of startups with a business plan started growing. Besides, the companies that resort to planning grow 30% faster than the rest.
Be creative and flexible.
A creative approach is essential to attract investments for the business. Airbnb is a good sample of it. After launch, it decided to offer the room with air mattresses - the first object of the lease that helped them to proceed, and with time displace many reputable enterprises in the hospitality industry.
Create relationships with your consumers.
The company needs a loyal customer base to start growing and not to pay for new customers all the time. If you learn to retain users, it decreases the expenditures considerably. Customer retention is the art that helps to grow your startup and develop your brand. They will keep on coming if you listen to your clients, react to feedback, and care about them sincerely.
It’s often necessary to adjust the product to serve the needs of users. Listen to them, analyze their behavior, and accept changes if needed. The opinions of buyers and their support is important for the future of the company.
Set big goals.
Don’t stay comfortable even if you see that the product is in high demand. The experts recommend to build the customer base and grow it by 4-5% each week. This work takes much effort, but it will repay.
Select the MVP strategy.
Though you should think big, develop your company step by step. At first, create a minimal viable product (MVP) - a solution the company can present to consumers. For instance, the company developing software shouldn’t wait until it finishes a full-fledged program. The creation of a minimum viable product will return the expenditures on the initial step to let the company grow further. It will also help to get immediate feedback and adjust the product to the customers’ needs. Continuous iterations of the sample, the addition of new features, and communication with consumers will improve the result.
There are many other aspects to consider when you create a startup, so this is far from being comprehensive guidance. However, these are the basic things to remember if you want to start your company.