Marketing

How to create your own startup from scratch in 10 easy steps

posted by Raj Kumar Reddy April 5, 2022 0 comments

Entrepreneurship has grown a lot in recent years, being an entrepreneur has become an option for self-employment or giving free rein to a business idea with future possibilities.

The entrepreneurship model via startup is one of the best known and most demanded . Many of them manage to survive and even be sold, it is also true that around 50% fail and disappear.

The success of a startup is based, above all, on the strategy and prior planning. Let's see some tips to create a startup from scratch and minimize the main failures that can cause complex consequences for its continuity.

What is a startup?

A startup is a young company that is just beginning to develop. They are scalable businesses with great growth potential .

These new companies are usually small and initially, financed and developed by a founder or a small group of them.

Another great characteristic of startups is that they are usually closely related to the technology sector , with new technologies and the internet being the natural setting to grow and seek business opportunities and even financing.

Next, we will see what are the steps to create a startup from scratch as well as some tips to minimize the appearance of the most common mistakes that can lead to its extinction.

How to create a startup?:

1. Define the business idea

Without a good idea it is very difficult to build a startup or any type of business. In fact, defining the business idea is the main step towards success, as well as one of the most difficult tasks to develop.

Converting an idea into a business concept requires thinking about issues such as the sales channel of the product or service and who will buy it, the benefits of the product or service, etc…

The entrepreneur will have to have an answer to several questions , including the following:

  • What is the product or service?
  • How is it different from other products?
  • Who will buy the product or service?
  • Why are they going to buy the product or service?
  • Who are the competitors?

The entrepreneur must be able to accurately and clearly describe the essence of the business in order to have maximum security to continue with the next steps of creating the startup and not die trying.

2. Carry out a market study

We have the idea but alone it will not develop or grow. Once the business model has been identified and defined with its characteristics and qualities, there is no other option but to carry out a market study.

One of the main keys to a good business plan is the pertinent market study. A market analysis is a quantitative and qualitative evaluation of the same, where the size of the market is analyzed both in volume and value, the different customer segments and purchasing patterns , the competition and other influential factors in it.

At the end of an in-depth market study, we will know what we have and what we are facing, recognizing our values, strengths and being clear about our objective.

3. Define the value proposition

Another of the great concepts that arise in the process of creating a startup is the so-called value proposition .

What is a value proposition? In simple words we can say that it is that key differentiating element that will make you better than the competition in the same sector.

From the point of view of the consumer or client, it is what makes him decide to choose one product or service over another.

Within the business idea definition phase, the value proposition should be well underlined. To reliably identify this factor, the determining factors of the market, the competition and the business idea must be taken into account.

In most cases, the value proposition defines the business strategy of a startup .

4.  Define your customer segment

The audience or the target public, in short, to whom we are going to offer our product must be correct, otherwise no business strategy will work.

One of the big problems that many companies suffer is not related to their product or service, but to the choice of their Buyer Persona.

Buyer personas are representations of your ideal customers. They help you define who is this audience that we want to attract and convert; and above all it helps us to humanize and understand this target audience in greater detail. 

It is important not to get carried away only by a business plan or strategy and to take into account the type of audience we want to reach. Each product has its own customer segment or segments, and recognizing them requires careful market research.

With new technologies, consumer analysis has become much more comprehensive, facilitating interaction with them and obtaining more information about it.

5. Build your brand

In other articles we have already commented on a topic as important as the brand . Every startup, like companies and professionals, needs to build their business in parallel to a brand.

Startups, as small businesses, must compete in a difficult and highly volatile market. They compete with big brands and not so big ones, but ultimately the fight is between the brands.

The brand shows the identity of the company at its best, the more complete and transparent it is, the more notoriety it will have. Let's not forget that a brand is defined by the general perception of a consumer or customer of your business.

The process of creating a brand requires study and reflection, as well as a policy of continuous work and visibility over time.

6. Form an optimal team

As in any aspect of life, being lucky enough to be surrounded by the right people helps you grow and improve. The same thing happens in the context of startups.

The management of a company, especially in its beginnings, requires great dedication and knowledge to be able to provide effective solutions in real time and anticipate possible problems.

People with confidence, desire to work and faithful to the business idea are necessary to create a solid, united group with a future.

7. Develop your Minimum Viable Product

Minimum Viable Product? It is nothing more than the first sample, final service products to offer to future customers.

It is a concept closely related to new companies and to achieve it, it is necessary to follow certain protocols to achieve said Minimum Viable Product with the best guarantees and in the shortest time.

It is usually cataloged as the first work project of a startup and from this Minimum Viable Product its costs, time and suitability for the target audience can be estimated.

8. Validate the business model

One of the fundamental steps before launching a business model on the market is to carry out a correct validation of the different hypotheses on which it is based, since if we do not do so, we run the risk of building our business on false ideas and perceptions.

The hypotheses on which the business model is based are those ideas or suppositions that we have not been able to confirm or that we are not sure will really work as expected... that is to say, practically everything, which implies that we must make an effort to validate these assumptions as soon as possible. 

The objective is to design different experiments and tests to validate the best acquisition channels and the viability of the business model, which will possibly lead us to have to propose new changes or options in the model. It is useful in this phase to use different Inbound marketing strategies to test the response of users to your product or service without being invasive.

9. Determine your financing needs

As we have said before in the definition of startups, they are small companies with an idea to develop and in urgent need of financing from their founders and partners.

Financing a small business, especially a new business, is a difficult but not impossible task.

The idea is clear: get money to start the business project. For this we can enumerate a series of formulas:

  • Seed Round:  It is the so-called initial financing of any business project, based on the trust and knowledge of the entrepreneurs. It usually comes from relatives and the closest environment.
  • Business Angel:  They are the so-called private investors, it is a subsequent financing as a result of the departure of the startup. It is based on a study of the first numbers of the business, these will be the best cover letter to get this type of investment.
  • Bank loans or credits:  Obviously we cannot forget about banks, to get a loan of this type you must have a very viable business plan with positive results.
  • Crowdfunding:  Possibly one of the most effective financing tools for startups. A mode of crowdfunding via the internet, crowdfunding platforms offer space to add projects and their needs. Users are those who donate capital for the achievement of these projects.

10. Network with key partners

For some time now, networking has been considered a key resource to promote the development of a company . For startups, networking becomes vital due to the great opportunities that can be obtained.

Networking defines the idea of ​​having a space to meet other professionals and generate new contacts and business opportunities. There is no self-respecting event that does not have a place to facilitate networking.

Conferences, events, training... Any time is a good time to carry out networking tasks.

Ideal to make yourself known, attract investors or give visibility to your product, service or brand.

Creating your startup from scratch can be the project of your life, with serenity, patience and professionalism you will be able to see your wishes come true. 

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