The creation of new companies is possible thanks to entrepreneurs. The growth of entrepreneurship has been remarkable in the last decade: a business idea is carried out as a viable employment alternative with a promising future. In this sense, the Startup model is in high demand and is becoming more and more popular at a social and economic level.
A young company that is beginning to develop can be considered a Startup. It usually has a strong link with the technology sector: the Internet and new technologies are the scenarios in which this type of company grows, and seeks financing and business opportunities. Find out how to create a startup and more details about this business model by reading this article.
Define a business idea
How to start a startup? The first thing you should define is a business idea that is as solid as possible. This is the main factor that will set the company on the road to success, but it is not easy to transform a simple idea into a real business concept. To achieve this, it is essential to specify the following questions:
- Product offered for sale or service offered.
- Differential element of the product with respect to its competition.
- Audience to whom the product or service is directed.
- Reasons why customers would buy the product or hire the service.
Creating a startup from scratch requires having a very clear business concept, so it is essential to determine it firmly before continuing with the process.
After opting for one of the different ideas to create a startup, it is necessary that you do a market study together with experts in the field. The analysis requires a qualitative and quantitative evaluation of the market itself, thus analyzing its size, value, and volume.
Other determining factors in the study are purchasing patterns, customer segments, all the competition, and other influential players. After the market study, you will know what you have as a business and what you are facing. You will recognize the values of your Startup and its strengths with a well-defined business objective.
Establish a value proposition
Being clear about what a startup is, you can follow all the steps to create it. In this process, the value proposition is very important, that is, the differentiating factor of the company that makes it better compared to the competition in the same sector.
For the customer, the value proposition is essential to decide which product to buy or the contracted service. It is the element that marks the entire business strategy of the company.
Delimited customer segment
Creating a startup with no money is within the reach of very few entrepreneurs. It always requires an initial investment, either from the person who provides the business idea or from a partner. It is also important to target a specific target audience in order to offer the product or service correctly.
The business strategy urgently needs a delimitation of its clients. Defining the startup’s audience helps create the message to attract consumers, after studying and researching the market in detail.
Any company, whether young or with years of experience, needs to build a business model linked to a brand. It is one of the most important keys that answer the question of how to create a successful startup.
In the case of startups, they enter to compete in a very complicated market with large, medium, and small brands. To gain a foothold in the market, they must exploit the company’s own identity with transparency. The brand is defined by consumer perception, so it is necessary to establish a specific work policy, reflection, study, and visibility of the startup.
Formation of an optimal team
Another aspect to consider about how to found a startup is the available work team. Surrounding yourself with the best professionals, both for knowledge and dedication will make the management of the company easier in its beginnings.
Trust between workers and loyalty to the business idea facilitate the construction of a united, consolidated and forward-looking team.
Development of the Minimum Viable Product
The Minimum Viable Product is the startup’s first work project. This is a concept closely linked to new companies and, to achieve this, a series of protocols must be met. In this way, the Minimum Viable Product is achieved in less time and with all the guarantees.
From this product, the time, costs, and suitability for the target audience are estimated. To discover how a startup of the future is constituted, the Minimum Viable Product is an essential step.
Validation of the business model
One of the keys to how to create a startup step by step is to validate the business model. Carrying out a correct validation of the different hypotheses on which the company is based, a high risk of building the business with false perceptions is avoided.
In this sense, the purpose is to design several experiments that serve to validate capture channels and a viable business model. These tests will force you to make some changes to the model in order to adjust it.
Establish financing needs
Finding financing for a startup is not easy, but it is possible. To start the business project, get money through one of the following formulas:
- Seed Round: it is the initial financing, based on the knowledge and confidence of the entrepreneurs, with actors such as family members or a close environment.
- Bank loans: obtaining a bank loan is difficult to achieve. To achieve this, it is necessary to have a viable business plan whose results are very positive.
- Business Angel: based on private investors, that is, the financing after the initial start-up. With a detailed study of the initial numbers of the business, you will have the best presentation to obtain an investment of this type.
- Crowdfunding: it is one of the most effective forms of financing in reference to startups. It is collective financing via the Internet through crowdfunding platforms that offer a space in which the projects and their respective needs are added. The users are the ones who contribute the capital that makes the achievement of these projects possible.
Networking and key partners
Networking is considered an essential factor for business development to be enhanced. As for a startup, it becomes an essential resource because great opportunities are obtained.
With networking, an idea and space are defined with the opportunity to meet professionals, new contacts, and more business opportunities.
Visibility and attraction of investors
Events, conferences, and training services to contribute to networking. Any place and time are suitable to carry out tasks of this type, publicize a business model, attract new investors, and give more visibility to the service, product, or brand of the startup.