How to Start a Startup
Planning to start a startup? If you want to go beyond the drawing board, here are the basic things you need to know to create your startup.
The idea of being your own boss sounds ridiculously appealing. No one to tell you what to do, you get time all to yourself, and above all, you have a steady stream of income. Unfortunately, this common misconception has led to a lot of tragic downfalls.
Starting a startup is not at all glitz and glamour, it requires you to get your hands dirty. Building a business from the ground up is a challenging but worthwhile venture.
If you want to start a startup, you need to equip yourself with the work, the resources, and the right motivation behind starting it. In this entry, we’ll cover all the basics of how to start a startup.
Checklist questions before starting a startup
Before we get carried away in learning the dynamics of how to start a business, we first need to establish whether or not you’re ready to start a startup.
Why Start a Startup?
The biggest step you need to take before launching your business is to set your goals. What is your vision as an entrepreneur? Do you have a grand plan for your business?
The road to success is a rocky one; it demands commitment. You’ll need the right kind of attitude to endure it. Understanding the top qualities of a successful entrepreneur is a start. Learn from the best to become the best.
Are you qualified to start a startup?
Do you have what it takes to be the Next America’s Top Entrepreneur?
We’re not talking about a business degree nor an impressive set of credentials. Truth be told, most of the biggest entrepreneurs of our time started from humble beginnings.
They just put in the right amount of effort and creativity to birth their businesses. In fact, Full Scale’s founders took on their journey of loss and gains before they came up with their successful businesses.
Can you fund your business?
To create your startup, you’ll need the money to build it. Startup funding goes through a lot of stages. From bootstrapping to finding investors, assess whether you can truly sustain your cash flow in the long run.
For your business to expand, you’ll need investors to support it. Even if you take out all your savings as capital, it will eventually run out. Consequently, consider the fact that it may take years to get a decent ROI.
Guidelines: How to start a startup
If you’ve run through the list of questions and you feel ready to start a business, then here are the steps to get started:
Make a Business Plan
You start at the drawing board and brainstorm from there extensively. A business plan is pretty much a summary of your entire vision for your company. It contains all the details involved in your business; business strategies, financial plans, marketing approach, etc.
This first step is crucial since your company’s long-term performance greatly relies on how well you’ve created its foundation. Your business plan may gradually evolve depending on the economy but it will constantly serve as a reference for your company’s direction.
Additionally, a business plan is also a requirement in acquiring a loan, which leads us to the next step.
Funding is what turns your idea into a profitable reality. You’ll need capital to launch your startup and you have to be creative in securing it. According to Fundable, the primary source of funding for most startups comes out of the business owner’s pocket.
The succeeding funds are usually sponsored by other investors. Depending on the type of industry you plan to enter, you’ll have to shell out a good sum to get your startup off the ground. Don’t worry though, it won’t be a solo ride forever.
Pitch to Investors
After you’ve initially secured a capital, you’ll need to find investors to grow your business. There are lots of ways to fund your startup. You can look into crowdfunding, angel investors, venture capitals, and even your own family and friends (though it’s not ideal). Be prepared with a good sales pitch and a comprehensive business plan to convince your prospects.
Pick a Location
From business giants like SpaceX, Instagram, and Airbnb, the US provides fertile grounds to grow your business on. According to the 2019 Small Business Profile, there are over 30 million small businesses in the country which accounts for 99.9% of all US businesses.
With its ever-developing economy, it’s home to the high-valued startup unicorns. This means that the competition is steep and you’ll have to go through a lot of hoops before you can truly break into the scene. But once in a while, you’ll hear news about unicorn startups taking over the business scene.
In considering your location, you have to think strategically. If you plan to start a business in your local town, you need to make sure that it welcomes your idea. Areas like Kansas City are a great place for startups than other metropolitans.
Here are some things you need to factor out:
- Target Market – Do you plan to make a name in a small town? Or do you want to break into the busy metropolitan areas? Wherever you choose to do business, you always have to consider the people. Picking out your location goes hand-in-hand in choosing your target market.
- Buying Power – Once you’ve identified your target market, you need to gauge their buying power. Can they afford your products and services? Will they be regular patrons of your business? You also need to evaluate the local economy of your prospect area.
- Competition – To get ahead of the pack, you need to know your competition. Who are your biggest competitors? If the location is saturated with businesses similar to yours, it’s best to look elsewhere. Your competitors may have already dominated your market.
Market your Business
After you’ve assembled all the elements of your startup, it’s time to sell it. Marketing doesn’t have to be expensive and all out. It can start with a simple website. Most small businesses DIY their marketing by creating and managing their social media and website.
Start your Startup with Full Scale
Launching and running a startup business is not easy. It takes a lot of hard work, sacrifices, and even a series of failures before you can succeed. Luckily, there are people who can help you.
Full Scale is a Kansas City-based company that helps businesses scale by providing software development services. We can help you through all stages of building your business. We can provide you with a team of project managers, business analysts, marketing experts, and software developers. Contact us to learn more!