The instance when one starts a business, they inescapably enter the world of a business cycle. Today, the world of startups is swarming with limitless possibilities and is profusely growing. It takes an immense amount of willingness, dedication, high-powered investors and a multitude of risks to reach the unicorn status.
Let’s try to understand what is a “startup”. A startup is an endeavor initiated by its founder(s) based either on an idea that can generate a vital business prospect. The actual work towards this idea commences much prior and is built along with a team to bring that vision to a reality. It requires the utmost amount of promptness and aptitude; to carve their way through the problems to achieve a maintainable business.
A quote from the renowned Zig Ziglar who gives the perfect insight.
You were born to WIN, but to be a winner, you must plan to win, prepare to win and expect to WIN.
Among a plethora of information, here are checkpoints we recommend for startups:
Evaluation
Knowing your strengths and the work in a startup is the key to having a successful venture. Evaluation of all aspects is essential; questions like the mentioned below will help give a clear perspective to go ahead in the right direction.
- What is the reason/motive to start a business? Is it finance, to solve issues, flexibility, creativity or freedom?
- Is it going to be a part-time or full-time business?
- What are the required skills?
- Is it a service or product industry you are catering to?
- How much capital are you planning to invest?
The answers to these questions will help you plan on things much earlier and focus on the things that are crucially important to make your startup a success. Another effective technique widely used and recommended is SWOT analysis (Strengths, Weakness, Opportunities and Threats) which will keep you on the right path and safe from unwanted situations. The initial days can be more thought-provoking and hence its essential to be doing what you enjoy.
Some self-analysis questions that will help could be:
- What is the most important thing to you?
- Do you have the family and friends support; since the initial phase will be a challenge, and it’s important to have them by your side?
- How significant is the role of money?
- Is there a certain business house/individual you admire? If yes, then what can you learn from them?
By having answers to these kinds of questions, you will know more about yourself and your abilities. It will give you an insight what inspires you and how to achieve the goals.
The founding team
There is an African proverb that says,
If you want to go fast, go alone. If you want to go far, go together.
To make your business a success, the base foundation has to be strong. This can be achieved when your start-up is supported by good co-founders. Above all, a fellow founder should seek a business founder they can trust to make it a successful journey.
Industry Analysis
As essential it is to have a personal evaluation, it is equally important to have a proper business analysis which includes researching the business you want to start from a complete 360-degree perspective.
After determining on the business idea, it is necessary to evaluate who will buy your product/service, who will be your competitors and what is required to get the ball rolling. They can find the answers by searching on Google, connecting with people in the same field of work, consulting with startup companies, reading relevant magazine or newspapers.
Setting up
Once you have everything figured with a good planning, the first step is to register your business. Depending upon the type of business, also apply for the required licenses and permissions.
There are mainly four types of business formations: sole proprietorship, partnership, corporation and limited liability company. It is essential to understand each of their pros and cons before finalizing for your startup.
The next step would be to plan your finances. There are various ways to seek finance from either an investor or a capital firm. But there are also instances where startups begin with a loan or help from family and friends.
Sustainability
It is pivotal to sustain through the challenging phases of a startup; since there will be tremendous pressure in terms of physical, emotional and financial. If you succeed in this part, then the sky’s the limit.
Be ready to make mistakes and learn from them. And most importantly, be creative, explore the opportunities and enjoy what you do.
Seize the best opportunity and let Promact help you garner more actions for your startup.