If you work accurately and precisely, you can turn a startup idea from a dream into a reality. It may sound incredible and have a business and technological feasibility.
You probably have read about all the unicorns, recruitments, and high-tech in the financial press. Therefore, you believe that if you get going – you will succeed. Before starting, you should take into consideration so valuable advice.
Read on to find out what advice you should consider and how to apply it.
First, start with this question – how are you innovating for the world?
Startups can develop new products or improve and optimize existing products. Otherwise, what’s the point?
It is not uncommon for inventions to come from our everyday lives. We all encounter problems and think about how to solve them.
Founders of Uber and Airbnb came up with these ideas after encountering difficulties – whether ordering a taxi or finding a place to stay that isn’t a hotel.
Look around you when you can’t think of a problem that bothers you. It is astonishing how many ideas people have regarding how to change and improve everyday life.
People will be happy to share and make suggestions. Find a real, significant solution that is relevant to many people. Don’t settle for a mediocre idea.
We should also consider the future, whether near or far in the future. As our world changes, new products and services are required.
Therefore, try understanding the “next big thing” in the various industries. When reading about these or other trends, consider the world’s direction and what it needs.
You must be on social media if you are not already. Not only on Facebook but also Instagram, Twitter, LinkedIn, and others. We live in a world where social networks are changing our lives and fostering ideas, problems, and needs to be shared.
Keep in touch with other people, find out what is happening worldwide, and see what is being discussed. When it comes to your startup product, you never know where your brilliant idea will come from.
Now you have an idea? Take the feasibility study
Okay, so you’ve come up with an idea and believe it’s the next thing. Now comes the burden of the proof stage. Gilad emphasizes that this is a step whose execution is critical.
Sure, the passion is there, but you must show that the idea is technically feasible and business relevant. That is so people will be willing to pay for it.
The MVP test
The MVP – Minimum Viable Product test determines whether a new business is viable. With this test, you will demonstrate all the features you plan for your product using the simplest product possible. Before investing money and time in a vision, it is important to determine if it is feasible.
Test your product in front of your target audience to see if it is successful. For example, if you have developed a new tool, consult with professionals at hardware and construction supply stores.
If you have created a technological product, test it against the target audience you think will use it. Analyzing and recording the reactions and comments of the target audience will help you improve and make it more accurate.
Investing more in your MVP will be more like the final product regarding reactions and references. Therefore, invest the most in it, which will save you a lot later.
</H3>Competitor and market research
The key to understanding your market potential is to conduct comprehensive competitor market research. By understanding your market, your customers, and the risks and opportunities, you can determine what you need to succeed.
This will be helpful in the next step, where you will approach investors (we will discuss this later). Market research should be comprehensive and in-depth to persuade investors that the numbers you share are accurate.
How do you find startup partners?
Establishing a start-up involves many tasks and assignments in between which the personal life is conducted. Partner with others who believe in the idea and want to succeed with you.
Everyone needs to bring their strengths and advantages to the table to move a start-up forward. The idea may have come to you, but you lack the connections or technical knowledge to turn it into a product.
Therefore, partners can help you with your weaker points and are there for you no matter what. During the construction process, not everything will always be good. Therefore, it is better to have someone else there to talk to about it.
On the other hand, when there are partners, there may be fights and friction along the way. One will think so, and the other will assume that the second way is the best. This also happens and should be considered.
Finding a partner who can be objective and transparent in communication is essential. Although, sometimes, choosing a partner who is a friend or relative can be problematic for the business.
This is because it may create a dynamic that has satisfaction, expectations, and tensions under the surface. These things may put both the business and the companies at risk.
How to approach investors for your start-up
You have a great idea, tested it, and know the market and your competitors, but now you need cash. A lot of cash.
For this, you must contact investors. But before you contact even one, you must understand what they are looking for.
So how do you raise money for a start-up?
Of course, there are ways to start being an entrepreneur with no money at first. But it’s always better to have all the resources you need.
Remember that not every investor is right for you. Some investors prefer or specialize in specific fields. If, for example, you are a product in agriculture, you have nothing to turn to an investor who operates in the capital or high-tech market.
He will not understand the product and the market and will not give money. But beyond the field of occupation, investors want to see the form of return on their investment. Those businessmen invest in start-ups so they can make money.
You’ve passed the first hurdle if you can prove that your product will make their money. Investors are, first and foremost, looking for ways to make money, but the hard part is reaching and wooing them.
Ultimately, investors are only people – each think and behave differently. It is challenging to give a “rule of thumb” that applies to everyone. Investing decisions will be based on numbers for some and gut feelings for others.
Prepare a well-structured and well-packaged business plan that considers your product’s aspects. You don’t want to be surprised by such and such questions from him. An important point to address with the investor is your story.
Remember that an investor hears dozens, if not hundreds, of start-up stories a month. He might even have heard something like your company. Why would he prefer to invest in you and not in others?
Because you have a great story, you successfully conveyed why investing in you would be a smart business move.
So, go on and create the next great business!