A step-by-step guide on how to start a startup10. August 2020 2021-07-09 10:51
A step-by-step guide on how to start a startup
A step-by-step guide on how to start a startup
Starting a startup
These days when startups are starting to operate in many parts of the world, it may have happened for many of us to decide to join this ecosystem. But what really attracts people to this high-risk community? What makes people interested in starting their own startup, despite the unknowns of its path? Or the fact that almost 9 out of every 10 startups fail? One of the main reasons is the tremendous growth that these businesses are experiencing. They can generate extremely high Return on investment (ROI) for the owners and investors of these ventures. Sometimes they can make billions in revenues! Of course, in addition to these cases, I must say that it makes people business owners and can even make them famous and popular. Many of us may have plans and ideas to start a startup but do not know exactly where to start and how to start a startup. I have provided a comprehensive guide in this blog for a better understanding of a startup, how to start a startup as well as knowing the steps of a startup. It may lead you along your way to building up a successful startup. In addition to this blog, you can use other related blogs or our free courses at UniqMaster for having a more effective understanding, just follow the links below.
Table of contents
How to start a startup!
- The right concept of a startup and how it differs from other businesses!
- A walkthrough on how to start a startup…
- Steps of a startup
- Some tips for succeeding in a startup business
Do you need startup training to know how to build a startup?
- Some important points among startup training topics
Blog at a glance
How to start a startup!
To know how to start a startup, we must first have a good understanding of the meaning of a startup. We need to know what a startup is and how it stands out from other businesses. Can any business venture be considered a startup? Or we can consider startups as businesses that only deal with technology? Or can we say that startups are those businesses that operate online, either partly or completely? Well, let’s figure them out!
The right concept of a startup and how it differs from other businesses!
Before getting into how to start a startup, let’s briefly take a look at the concept of a startup. The word startup itself means the process of moving something. From this word, we understand the general meaning of a startup, that a person or a group moves something. If I want to go into a more detailed sense, I have to say that a startup is a business venture that offers new products or services in the market that usually have no equivalents or a very small number of equivalents in the market. Startups often come up with new ways of doing things, and they often disrupt the existing businesses in their respective industries, because those businesses are traditional and something that has been repeated for years. Startups usually start working in new ways on products or services. The new methods of operating the business are one of the main points that set a startup apart from other businesses. Every new business cannot be considered a startup. There are new businesses in all cases, but other businesses are based on repetition, and startups are based on innovation, something that either does not exist or if it does it is brand new. Another difference that differentiates startups from other businesses is their speed and growth. Startups have the potential to grow large and turn into big companies. They grow at a fast pace, faster than any other business. They are not just businesses that operate in the field of technology, we have normal businesses in this industry too. The fact is that startups can also be started in other industries, rather than only in the tech industry. Startups do not only include businesses that operate online, they can operate in other formats and continue to be startups. But what happened to the story of how to start a startup?
Did You Know?
According to Statista, a German database company, the main challenge for startups is to start a new type of business.
A walkthrough on how to start a startup…
By understanding the right concept of the startup and knowing its meaning, we realize that starting a startup is not like starting a normal new business. Starting a startup is associated with unknown ways and new things that may have not happened yet! Starting a startup is not simply about setting up a store, office, or website, and offering your products or services there. Even though we have this stage in every business, the steps needed for starting a startup should all be planned, with the difference that it must be planned in such a way that the idea differs from other ideas that are already operating in the market. We also have to be very productive to find these ideas, because time is passing and new ideas are being implemented by different people day by day. To know how to start a startup, after understanding the concept of a startup, we must know the steps of a startup.
1.Identify the problems and solutions:
One of the first steps of a startup is market research. Market research helps you to know your market well, identify your target audience, find problems in the market, and also know your competitors. One of the most important things in market research is finding the problem that connects everything I said in the previous line. And by that, I mean that you or someone around you may have a problem using a product or service, or there may be a problem that bothers you or a lot of other people. Identifying these problems is one of the first steps in starting a startup because once you identify your target market and find their problems, as well as knowing your competitors and see how they deal with those problems, you will be able to create new and better solutions. As a result, you will be able to build your startup on the right structure. It should be noted that all of these points such as the effectiveness of solutions, customers’ satisfaction, as well as the other points related to competitors’ solutions should be considered. All of these will help you come up with a distinct and effective solution to those problems. The right solution will not only evolve ideas and create new ones, but also attracts many people to your startup business!
2.Minimum Viable Product (MVP):
Minimum Viable Product is actually the simplest form of a product or service that you want to provide to your customers. An MVP can be a mock-up of your product, a video of your product or service, or even a landing page, etc. But how can you create an MVP for your startup? One of the important things to consider about how to start a startup is creating an MVP before you spend high amounts of capital and time. The important thing in building all minimum viable products is to put the core capabilities of your product or service in it so that it can create a direct experience for the user to use that product or service. In this step of a startup, you create an MVP for the right solution that you have in mind for solving market problems. At this point, you should share your minimum viable product with a small segment of your target audience to examine their behavior and check their interest in the solution that you are going to offer to the market. By evaluating your market’s behavior based on their satisfaction, their expectations, and how willing they are to buy your product or service, you will be able to understand the feasibility of your idea. Remember to present the MVP to people in your target market who are not close to you so that you can get clearer and more realistic information. This stage will help you to evaluate the feasibility of your idea and solutions by spending a little amount of time and capital. In fact, this is where you’ll find whether your idea is worth implementing or not! You can use our free tutorial video about how to build up the right minimum viable product:
A pitch deck is a file, usually a PowerPoint file, that describes the important points about the startup and it is mainly used to be presented to investors as well as customers and partners. But how should you make a pitch deck? Another important thing you should consider in how to start a startup is to build a pitch deck. To build a pitch deck, you first need to do all the previous steps and list the important points of the startup in 15-20 pages/slides. Some of the points needed for a pitch deck are the company’s vision and mission, problems and solutions, competition, financials, business model, the required budget, etc. These items are listed to be presented to potential investors in order to make them interested to invest in your startup. Once the MVP built in the previous step of a startup meets the interest and expectations of the target audience, you need to take it to the next level and start building the complete version of that product or service. To do this, you need to prepare the right resources. These resources require initial capital, in which the amounts vary in different businesses. One of the most common ways to raise the initial capital is to attract investors. Creating a pitch deck is an essential step in the steps of a startup to reach out to potential investors, as well as co-founders and customers. Read the following blog to know all the requirements in Pitch Deck and all the related points.
Did you know:
In 2009, when AirBnB was still a startup business and wasn’t really known to the world, its founders were able to raise more than $ 500,000 of capital by reaching out to investors with their pitch deck.
4.Suitable products for the market:
After evaluating the main capabilities of the product or service and providing the required initial capital, you will move from the test phase to the main phase of the startup. This is the stage that a startup has already passed through recognitions, tests, and evaluations and it is ready to enter the market. At this point, the minimum viable product will be turned into the final product or service, something that fits the market. But you may be wondering how to make a product that will be suitable for the market? Well, the pivot in how to start a startup is this step where you will create the actual product/service that you want to offer to your final users. I must say that at this point you should provide the core resources for your business that includes equipment, such as sales office, website, telephone, transportation, etc. Another thing to consider in your core resources is the right people. You need to find and hire the people you need to get started with. Using these resources, you will upgrade the product or service for which you have previously created an MVP for. In fact, this is when you should produce the final version of your product/service and provide it to the market. At this stage, the possibility of the presence of one or more shareholders is high, and as a result, using the experiences and connections of those people can result in better strategies for your startup business. This stage is indeed one of the most vital and difficult steps of a startup.
At this step of a startup, the business has been usually operating for 1-2 years, attracted customers from the market, found more connections, and grabbed a segment of market share for itself. This is the stage where a startup business develops and becomes larger in scale. This is possible through market development. Market development can be done in different ways, such as serving in more regions, cities, or countries, making changes and upgrades in the capabilities of products or services, offering new products or services, changing marketing strategies, as well as other related things. After knowing how to start a startup it is necessary to know how to expand it. This is when you need to bring in specialized people to the company and expand and strengthen your team. You and your co-founders may want to reconsider your positions in the business or even change the positions of some of your employees in order to develop and increase the efficiency of your startup. A startup reaches a serious phase in this step. But all these changes and developments need a capital increase. At this point, your startup business may have reached a point where it has generated significant capital for you to use to grow your business. But usually many startups need to attract more investors to increase capital, so a new pitch deck may be needed here. Usually at this point, a startup needs more capital than the initial capital to rise and develop. For more information on startup finances, you can read the following:
At this step of a startup, the company reaches maturity after all the development and progressions it has been through. This is when a startup becomes widely known and becomes a well-established company. A startup reaches this point when it has turned into a sustainable business. At the start, this kind of business has the potential to grow exponentially at high speeds, but this intensity decreases over time as the business progresses to a stable point. There are several options at this phase for you to continue your path to success and plan for the future of your business. The first way you can choose is to continue the path you were on, paying dividends to shareholders and withdrawing the remaining profits for yourself. In some cases if the parties agree, you can buy the company’s shares back again from shareholders. The second way is to buy all or a large amount of shares of companies that are strategically profitable for your company, such as the Beats Company that was bought by Apple Company. The third way is to go public and provide Initial Public Offering (IPO). For a better understanding about the steps of a startup, you can participate in our courses related to how to start a startup.
Some tips for succeeding in a startup business:
1.Use talented people:
One of the characteristics of entrepreneurs is to have a couple of skills in different areas of a business. This is to give them the ability to manage their business, especially in the first days of starting a business, when entrepreneurs are usually the sole person of the company or they just have a small number of people on their team. But you have to keep in mind that no matter how good a person is at doing different things, he will not be able to do them all at the same time. The same is true for entrepreneurs. Therefore, one of the points that make progress and success in startups is attracting talented people in various fields of work. You can hire talented people who fit your startup values and work for them professionally and effectively. For more information on how to build an effective team for a startup, I suggest you read the related blog:
2.Have a valuable mission:
In many cases, due to financial constraints, startups are unable to pay high salaries or lots of benefits to employees. As a result, they may face problems in hiring talented people. As you know one of the points to be considered in how to start a startup is hiring people therefore it is important to know how to make them interested in working with you. One of the things that can make talents interested in working with your newly established startup is to have valuable missions and goals. Valuable goals cannot only increase the likelihood of talented people joining your company with lower salaries, but it can also be a reason for your business to better fit in the market.
3.Encouragement for teamwork:
Another tip that can be used well in any step of a startup is teamwork. Teamwork can be considered as one of the advantages in any community or organization. You can build up your team with talents and encourage them for teamwork. As a result their synergy and efficiency will increase. This makes your business progress faster and a lot more efficiently. This also creates room for the development of new ideas and strategies in each member of your team, which can be used to better reach the company’s goals. As a result, you will witness positive impacts on the success of your business.
Did you know:
According to a blog on (Hbr.org), people who work in startup teams with high work experience but have relatively little team enthusiasm and solidarity are usually weaker than others.
Another tip for success is to avoid wasting too much time. You do not need perfectionism to provide your service or product. In other words, you do not need to make a product or service in the best possible way (in your opinion) to be offered to the market. This leads to high costs and a lot of time spent, which slows down the progress and thus may result in startup failure. Of course, I do not mean to present your product or service to the market with defects or shortcomings. When a product/service is completed without defects in the main capabilities, you can release it in the market without any obsessions. This saves you both time and money and allows you to improve or upgrade that product or service by receiving real feedback from your customers. This is a real example of trial and error, which is a factor of progress and success in any field.
5.Accountability and fulfillment of obligations:
Another important point that makes progress in the stages of a startup is taking responsibilities and fulfilling commitments. But how do you build responsibility in people working in startups? I must say that your startup will not succeed unless the people working in your start-up business know what you and your plans mean. To know how to start a successful startup, you should consider that leaders need to know the intentions and plans of the top executives and lead the employees accordingly, and also when the team members know the intentions and core plans, they can easily plan for their department and meet their commitments. This results in the improvement and progression of a startup.
6.Research and development (R&D):
You may have heard or read this phrase a lot. Research and development is one of the most crucial factors for progress, not only in the steps of a startup but also in the stages of all businesses. Consider, for example, if Apple had remained limited to computers since the 1980s and did not expand into other areas such as smartphones, tablets, accessories, etc, could it reach the same place it is today? When a business succeeds in offering a certain product or service and meets customers’ demands it should not stay at that point and stick to it. When this happens, people should research about the new trends, market, customer behaviors and desires, as well as similar points. This will make them able to upgrade their products or services or go for different products/services. This allows a startup to adapt well to the changes and developments in the world and the way people live.
7.Various key benefits:
Having a variety of advantages will make your brand stand out from competitors and this point can make your startup more famous and popular among customers. But you may be wondering how to build different key benefits for a startup? In response, I must say that when you introduce new goods and services to the market, make innovations in the design of your products, offer after-sales services or many other things, this will make you inimitable! This means your products/services can be hardly copied by your competitors in the market. In other words, diversity in key advantages reduces the likelihood of getting copied by your competitors, sets you apart in the market, and makes you more recognizable. Having some key benefits that define a brand are very important factors in the development of a startup as well as other businesses. For example, Apple was able to capture a large portion of the tablet, headphone, and mobile phone market with a variety of key benefits it had, such as simple and beautiful designs, incredible marketing power and customer service, an efficient supply chain, and more. Apple was able to take over the position of Nokia, which for many years was the best mobile phone supplier!
Did you know:
In 2007, on the cover of one of the Forbes’ magazines, next to the picture of a Nokia mobile phone, was written: “1 billion customers – can anyone catch the cell phone king?” In the same year, Steve Jobs introduced and launched Apple’s first mobile phone, the iPhone, which today has one of the biggest market shares of mobile phones.
Do you need startup training to know how to build a startup?
We all live in a world where everything is changing and evolving day by day. One way to cope with change and not fall behind is to learn and increase our knowledge. It can be said that education can be necessary for anything, but how much is it needed? About the fact of how to start a startup, I can say that without startup training, you can start and run the business with the possibility of progress and success. But the point is that without education we may face many vague problems and may not have enough knowledge and skill to deal with them and solve them. Another area where startup training can help us a lot is in the management and development of the company. Even though after a person learns about how to start a startup, he/she needs to be constantly trained because it helps him/her to adapt to the changes that are happening day by day in the world and helps them to be able to evolve and improve their business. Startup training also helps entrepreneurs and managers working in Startup Ecosystems to develop and thrive with a better vision and ability.
Some important points among startup training topics:
- Understanding the startup ecosystem
- Building a talented team
- Business model
- Product management
- Marketing strategies
All of these will no doubt help you to start a startup better, make progressions, and succeed. You can participate in structured content courses of UniqMaster and get the essential startup training.
Blog at a glance
The startup ecosystem is growing every day and the number of people entering this community is increasing rapidly. I can say that one of the main reasons for the popularity of this field is the tremendous growth of businesses and the high income it brings to their owners. In order to be able to enter the startup ecosystem and start your startup with consciousness, you need to understand it well and distinguish it from other types of businesses. To learn more about how to start a startup, I have explained to you the steps of a startup and some tips for succeeding in a startup business. Finally, I have explained the importance of startup training in starting a startup so that you can find your most suitable path and follow it with a better knowledge!