What are the steps to creating a startup?
It is not enough to have an idea, many other ingredients are necessary in order to create a successful startup. In this article we’ll discover which.
1. Have an idea
If you want to become an entrepreneur you have to start with an idea, an innovative idea solves a new problem or an old problem but in a new way. However having a great idea is not enough. Enter the validation phase.
2. Validate your idea
It might be that the problem you’ve identified is not a problem for many people, so you wouldn’t have a market for your business, or it might be that your solution needs to be perfected. How would you know? You must talk to your target customers and listen to their feedback.
3. Find your target customer and build a customer base
If the validation phase has brought some good results and you have much clearer ideas you can work on your product or service and identify your target customer and build a customer database.
4. Create a business plan and a marketing plan
Most likely, in order to reach your targer customer you’ll need to invest in marketing actions. Have very clear how you plan to make money with your business and create a business plan. This will help you identify the investments you need to make as well.
5. Build the perfect team
How many times have you been told that in a startup the most important ingredient is the team? And for good reason.
A good team is composed of complementing skillsets and a shared committment towards the project. In fact it’s not surprising that many startups fail for disagreements between the components of the team. If at this stage you realize you need a key figure in your team, now is the time to find them.
6. Find funding
If your team is solid, this will look good when trying to convince investors. Your startup pitch will certainly make or break your case. However investors are only one of many ways to fund your startup, you can opt for private investors, crowfundings, qualifying in government grants, entering an accelerator program, giving equity percentages and so on.
6. Register your company
Either at the end of these steps or before receiving funding you’ll need to legally register your company. More often that not this is crucial to receive said funding. Choosing the best type of company to establish will depend widely on the type of startup you are launching and other requirements which vary depending on the country you are choosing to create your startup in.
Want to be an entrepreneur and launch your own startup? You can qualify for the RBS4Entrepreneurship incubation program, if you are a RBS Master student. The next edition will start in summer 2022.