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How to organize your startup, a practical guide. Startup startup: what you need to know? How to launch your startup

The concept of "startup" first appeared in the early 70s in the American magazine Forbes. Startup - from English "start-up" is translated as launch. In the 90s, people associated the word “startup” only with Internet technologies, since at that time the “dot-com” business was very popular.

Today, a startup is a new company that is at the stage of development and builds its business on the basis of new technologies.

To launch and start investing in a startup, you need to develop a business plan. Most business start-ups are overconfident. They think their unique idea is the key to success. But in fact, the success of a new business depends on many factors that are very important to plan in advance. This will be discussed further.

Today, in the 21st century, most new startups are funded by foundations. Therefore, to interest investors in a startup is the most important thing.

Startup Facts:

Every business starts with an idea . If you come up with a really unique thing that has no analogues, then this is already 50% success. The rest will depend on your work in finding investors and promoting the product;
Team. You must understand that it takes enthusiasts to launch a profitable startup. That is, a team that will work for the idea of the project, and not for salary - as most do;
Investments . We all know that it is not realistic to start a new business without initial capital. Many startups use their own money or credit - this is wrong. The best thing is to find good investors who will constantly support you.

To properly launch a startup, you first need to test it. If you do not have professional specialists on your team, hire performers. They will analyze your business qualitatively and independently.

But if you still decide to do everything yourself. First, you will need to identify your target audience. And the best way for this is a sociological survey, with the help of which you will calculate the level of potential demand.

Also, do not forget to analyze the closest competitors. This is very important, as this data will become the basis for your business.

Next, of course, is testing your product that you are going to sell. It is very important to do the right market analysis. The future of your startup will depend on it. You also need to check the entire business plan and think about promotion. Marketing is one of the most important business structures, don't forget about it.

Creating a strategy

A trading strategy is a very important element of a startup. Most investors in the analysis pay more attention to the strategy, since according to its statistics, the full picture of the company is immediately visible.

Very often, beginners build their strategies based on personal experience - this is true on the one hand, but it would be even better to include specialists here who will tell you the basics and explain some aspects.

What is the plan for:

Firstly, for the systemic development of a startup (keeping it at the level, entering new markets, launching new products, etc.);
A financial plan is the most important part of a business. So be sure to keep an eye on all assets and liabilities;
Business development planning, goal setting, employee search all depend on the company's management.

Your startup may not always be unique. But it must have a little zest to stand out from other brands and to interest new investors.

Search for investors

There is a startup idea, a business plan has been thought out, it has been tested, the market has been analyzed - what should be done next? Of course, look for investors. According to statistics, lack of funding is the reason for the failure of about 50% of all startups.

American scientists have proved that financial problems are second in the rating of failures after the first unsuccessful idea. Investments in startups in Russia are not yet as popular as abroad, so feel free to look for investors and work. There are a lot of opportunities in Russia.

You can get investments using such proven methods as:

Formula 3-F. That is, Family, Friends, Fools. Look for money from relatives, friends and fools);
Grants. State subsidies are one of the most popular types of investment in foreign countries. Unfortunately, in Russia all this is only on paper, but try anyway. "What doesn't kill you makes you stronger" - as they say;
Business angels, that is, rich people who have a desire to invest somewhere. Theoretically, we have a lot of such people in Russia, but in practice, many businessmen are skeptical about startups. Since our mentality is not yet ripe for this;
Participation in competitions is not only a chance to get investments, but also additional PR for your business. Another advantage of competitions is free testing of your idea in practice;
Investment funds (venture, investment, hedge, share). It is quite difficult to get interested in such funds. Basically, they deal only with unique projects and new technologies;
Large corporations. Often these organizations are the best lines of funding for a startup.

final stage

In the business world, the final stage is called alpha and beta. Alpha means preparatory testing with the possibility of improvement. The client base is formed in parallel. The final is the announcement of the product and entry into the market.

The beta stage is the test of a product with potential customers. Given the pros and cons on their part, the developers draw the appropriate conclusions and finalize the shortcomings.

Launch!

Hooray! Startup Launched!

Experienced businessmen know that a good start is already 50% of success. Therefore, before a serious launch of a startup, double-check everything carefully and be prepared for difficulties. Even such well-known corporations as Apple and Google slowed down in the beginning. So don't expect quick results.

Give yourself time, work harder and you will succeed! I wish you success!

When you think about starting your own business, a million questions arise in your head: How to create a startup? How to start a startup? What is my niche? How to develop a business plan for a startup? How to differentiate yourself from competitors? How to set business goals correctly? How to get investment in startups?

A clear action plan sets the direction for launching startups and will help you stay focused even when other things around you seem to be going crazy. Luckily, other people have gone through this before and there is now enough information on how to start a startup.

What is a startup?

Today, the word "startup" flashes everywhere on the Internet, on television, radio, in various print media. Literally from English, start-up is translated as how to launch something, in practice, a startup is a project that has recently launched or has a short history of action and builds its business on innovative technologies with limited resources, but at the same time has significant potential for development. In other words, a startup is any business undertaking, regardless of the field of activity.

Anyone can start a startup, but for this you need to understand how ready he is for this business. It should be noted that the launch of startups, despite the nuances and hard work, in comparison with the liquidation of a business, is a very easy process.

Remember, when developing a plan for how to create a startup, you also need to consider all the ways to get out of business in case of failure. And if you suffered one failure, this is not a sign that you cannot try to go through the stages of a startup again with a new product.

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How do you know if you're ready for a startup?

First of all, you must be proactive and bring things to their logical conclusion every time. In addition, you must be adaptable, able to work in a team, have certain communication skills, be open to change and learn quickly in order to grow at the same time as your project. Be able to correctly ask for investment for your startup and correctly offer your product or service. But, more important is the compatibility between you and the startup you are working on and the belief in the product that this startup is developing from scratch.

A startup from scratch gives you the opportunity to organize a flexible work schedule for yourself only if things are going well, and this will definitely not come right away. Don't be afraid of bureaucracy and organizational politics as long as you have the opportunity to work in a team that truly believes in the product. If you imagine: a warm work environment, opportunities for personal and professional development, no bosses, and you feel like it, then you can confidently say that you are ready to create a startup.

Today, probably, every representative of modern society dreams of a job without bosses, short days of rest, one that could provide a comfortable life, provided that it lives in full force, and not according to the daily program home-work-home.

That is why undertakings are so popular, the implementation of which does not require their own large investments at all, many of them choose to start a startup from scratch or find investors even before the start-up.

Where to begin?

To reach certain heights in your endeavors, collect as much information as possible on how to create a startup. Decide what type your future business is and whether you need to invest in Startup from the outside. What will you do? You will promote your product to an existing or new market, or you will search for your own niche. All this needs to be sorted out before starting a startup. Study carefully all the stages of a startup. Carefully, in all details, prepare your vision of the business.

Vision, first of all, represents the exact knowledge of how your launched startup will look like in 3-5 years, namely: what will be its place in a certain market, who are the main customers and what consumer needs are satisfied, are there any competitive advantages that contribute to successful business development. And only after that start to act.

To act means to develop a business plan for a startup that contains the stages of business development: creating a company, planning a location, hiring, promoting a business, developing and delivering products or services, as well as assessing the relationship between resources allocated and results obtained, potential profits and possible losses.

Confidence in Russian startups and their success must be very strong and represent a source of energy to overcome any difficulties.

It is necessary to rationally divide the entire process of formation and development into the following stages of a startup.

An idea is extremely important for launching startups. It can arise due to personal creative thinking, a thorough study of the needs of the target audience, and it can also simply be borrowed, for example, in the West, which has become quite a common practice in our country.

At this stage, it is important to analyze all the available information on creating a startup in all possible sources, from newspapers and magazines to the Internet and the usual survey of friends and acquaintances, confirming the uniqueness of the idea that will become the basis of a new startup created. All this work needs to be done in order to avoid the unpleasant situation of duplicating an existing business.

It is worth thinking about your own security during the development of a startup, after all, before starting a startup and for some time after the project is not yet profitable, therefore, livelihoods are needed from outside. It is also important to think over all the ways and means to turn the earnings received on the project into banknotes.

Many beginners at the stage of creating a startup prefer to work alone, perhaps there is a rational grain in this, but a good, cohesive team can achieve great heights of success. It is important to decide on the number of partners, there should not be more than 2, otherwise it will become inconvenient to control the process of fulfilling the duties of each and the startup will become a set of unrelated tasks.

A very important and extremely necessary stage is the preparation of a startup business plan. Without it, not a single investor will even look in the direction of the project, and after all, investing in startups can become a good reference point for a business start-up. Yes, and the author of the startup himself will not be hindered by cold calculation and systematization of data, in the future this will allow you to quickly and effectively correct the shortcomings that have arisen on the part of finance.

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As a rule, in order to launch a project, certain financial investments are required. That is why many novice project authors, even knowing everything about how to create a startup, stop at this stage of a startup, putting a big and bold cross on their idea. In fact, it is quite possible to find funds for a startup, you just have to make efforts, patience and spend your time on it. Many investors can really be found on special exchanges, within social networks, various sites on the Internet. Russian startups, depending on their specifics, can receive government funding. For example, if you live in Krasnodar, then I can direct you in the right direction to receive a grant to develop your startup and get advice from professionals.

Sometimes a situation arises that no matter how hard a newly minted startupper tries, unfortunately, not a single investor shows interest in his project. In this case, the main rule is not to despair, keep moving forward and try to find all the mistakes and shortcomings of your idea and seek investment in startup. It is necessary to hone all the details and moments that may affect the emergence of interest in the project until the expected result is achieved. It is thanks to perseverance, faith in one's own strengths and the ability to mobilize oneself in any situation that one manages to launch unique, profitable projects.

Benefits of starting startups

Startups have the following benefits:
flexibility in relations with business partners,
fast and efficient management decisions,
small number of employees
effective management of human relations.

But remember, to achieve maximum success in a new business, even before you start a startup, you need to identify the main element of your business and differentiate it from similar ones in the market. This will give competitive advantage and loyalty to trading partners through: tailoring products and services to customer needs, reducing delivery time, improving the price-quality margin, providing after-sales service, continuous online support.

Business risks

There are various risks that affect both a start-up from scratch and already quite "mature" companies to the same extent: a dynamic business environment and rapid growth of competition, limited access to financing, lack of information about foreign regulations for various industries.

To mitigate these potential risks, the entrepreneur and his team must be alert and concerned about access to information related to Russian startups. Based on this flow of information, they will analyze the opportunities and risks that may arise from the company's external environment (economic, legal, social) and will set business development goals and strategies.

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business goals

A start-up from scratch that relies on good governance defines its goals using the SMART rule. Under the SMART rule, it is understood that the business goal should be:

concrete,
measurable
achievable
realistic
defined in time.

Each novice must define long-term, medium-term and short-term goals and objectives for his startup. Since only identifying priority lenses will help achieve the desired success.

So, the strategic and long-term goals of a startup from scratch (3-5 years) should take into account a number of important elements for the development of a Russian startup, such as:

turnover and net profit,
the amount of material investment in human resources,
the amount of material investments in business promotion,
the needs of the business itself and the financing structure.

Medium-term (1-3 years) and short-term (1 year) goals stem from strategic objectives and are aimed at detailing commercial areas, such as:

offering products and services,
target market,
target customers
business promotion,
sales ability and strength,
distribution channels.

Investing in startups is one of the main elements of launching startups.

Therefore, investment goals also fall into this category:

repair and arrangement of space,
acquisition of machines, equipment, software.

It is also worth emphasizing that in order to achieve any goal, before starting a startup, a strategy must be developed that will consider the main stages of action, intermediate and final dates, allocated resources and assigned responsibilities and, of course, the results to be achieved.

The results of the strategy are reflected in the overall situation in the company, which can be analyzed periodically (monthly, quarterly, semi-annually and/or annually) using relevant indicators, such as the dynamics and structure of turnover, the number of customers and the average value of transactions, the flow cash and labor productivity. Also, correct and clearly articulated strategies can attract investment in startups.

Business strategies

Beginners know how to create a startup only from the examples of their friends, acquaintances or idols, or from the experience of an employee in another company with a similar product. Therefore, in the case before starting a startup, business strategies are the result of personal experience and managerial skills of the entrepreneur.

There are Russian startups that start their work without defining clear goals and strategies, entrepreneurs relying only on intuition and market opportunities. But, as the business grew, there was a need for effective management based on specific strategies:

for company development (new markets, new products, partnerships, mergers),
on startup investment strategies (self-financing, commercial loans, bank loans),
human resource management strategies (curricula, promotion plans, assessments and cancellation fees).

For each startup, a strategy is developed from scratch on the so-called “zero basis”. This means that a startup has no history, and when drawing up a document, an entrepreneur is guided only by an analysis between goals and results, effects and efforts.

To develop a strategy, aspiring entrepreneurs can look to other companies in the market as examples, but they must also emphasize their competitive advantages and bring “flavor” to their startup.

How to create a startup from scratch

You are thinking about starting your own business. And so, the question arose: what kind of business to do? The best option would be such an option as a startup.

So, a startup is a project aimed at a short existence. Most often, it is created in a few months and, sometimes, does not even have the status of a legal entity. Now it will depend solely on the owner how successful the development of his startup will be, and whether it will turn into a full-fledged project.

Best Startup Ideas

Of course, before creating a project, you need to think about what exactly you will do. Startup ideas can be completely diverse and differ significantly from each other.

Consider the most unusual and profitable options:

Recycling and recycling of materials. For example, you can start a waste paper collection company and then produce books by emerging authors for a small amount of recycled paper. Thus, you will not only earn extra money, but also save the environment.
Promotion projects. SMM and PR on the Internet do not require special financial costs, but are considered very profitable for performers. You can open your own service for exchanging likes with additional services - for example, instant boost of subscribers for a small amount. Thus, you will gradually earn good money.
Invention of new types of gadgets. If you're lucky, you can even win a grant to develop your project and get worldwide recognition. Think about what kind of device can benefit people, and implement your idea. For example, a new model of bicycles, a special smart watch or a robot.
Using other people's projects. You can buy a startup for a small amount and start developing it. For example, a small shop for youth jewelry or underground literature. Thus, you will buy an already developing business, but it will depend on you how its fate will develop in the future.

Rating of the best startups

Now let's look at those startups that caused the greatest resonance in the Russian Federation and beyond.

In Russia

Online hypermarket 2for1. A joint project of Ukrainian and Russian figures. This store brings together the most popular brand stores and is aimed specifically at a foreign audience. Moreover, the site publishes only products with a big discount, which allows fashionistas to significantly reduce their expenses for buying clothes.
Aero State. A project that allows you to assess the state of the air in every corner of the world in a few seconds. Or AstroDigital, which is somewhat similar to it, is a collection of all the cartographic data of the Internet, where you can instantly look at the place you are interested in from different angles.
AntioncoRAN-M- the world's first cure for neck and head cancer! He will be able to increase the effect of radiation therapy on the patient and speed up his recovery.
carprice. This is a service that allows you to sell cars at maximum speed to any Internet user. It is the most convenient for reselling a car "from hand to hand",
FireChat- Russian-made messenger. The service is so popular that more than five million users have been using it lately.

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Abroad

Periscope. One of the most popular services for creating and publishing short video broadcasts. After the end of the broadcast, the broadcast will be available for one day.
gogoro: machines of the future. The company is engaged in the creation of electric scooters that do not require recharging. A motorcycle of this level is ideal for big cities. It can increase its speed to 98 km/h and drive up to 190 km without changing batteries.
Aero. A white device that allows you to solve the problem with the signal of the home Internet network. It transmits a signal to all other gadgets in the house, for example, from a laptop or router.
21. A startup that will give you the opportunity to earn cryptocurrency using a regular smartphone.

Features of investing in a startup at the initial stage

When deciding to invest in any project, you should know that the idea may not pay off, and the money will not return to you. But, as they say, who does not take risks - he risks even more, which means it's worth a try. In any case, the probability of failure is small.

Before investing money, it is important to familiarize yourself with all the components of the project and study the different aspects of this issue.

Many people ask what a startup is. With the development of business in our country, this term is gaining more and more popularity. Small business start-up projects serve as the first step towards building a business for those who do not have enough funds at the initial stage. In this article I will try to answer questions about why startups are talked about so much, and how startup projects work, what does this mean in general.

Origin of the concept

The creator of the term “startup” Steven Blank defines it as an intermediate structure aimed at finding and implementing a business model that can expand. Translated from English, the term means “start” of the process, its beginning. At the same time, it concerns only those promising projects that are launched from scratch.

A startup is a unique idea of making money. It does not copy existing projects, but offers customers something new.

But what can you think of if at the present stage it seems that everything was invented before you? An example is the idea of Mark Zuckerberg.

What business is not considered a startup

Today in Russia the term is used in relation to any start of entrepreneurial activity. Even the banal opening of a stall in the market or the sale of shawarma is considered a “startup”. This use of the word is incorrect.

Of course, if it's an establishment that has an original format that can grow as a profitable model, it's a start-up. The principle is simple: opening a Japanese restaurant in a provincial town is a start-up, despite the fact that this option will not work in a big city. However, a stylized Vietnamese restaurant can already attract potential investors and buyers even in the metropolis.

Speaking about projects on the Internet, the term should be used only when the service and the services provided by it are truly original. Thus, the main condition is innovative ideas and unusual service technologies that are not yet used in mass everyday life. A startup may not even have a legal status in the early stages of its existence.

I tried to describe in detail what falls under this concept. You can learn more about defining a startup project by watching the following video:

Among the most tangible disadvantages is the lack of proper funding. In Western countries, start-up projects, invented and implemented by students, are called "garage" firms. Most of these firms do not live long because of the instability of the market and low income.

Problems with a startup in Russia: why the project “failed”

Startups in Russia are distinguished by a number of significant features:

Locality. In 90% of cases, the innovation will concern only the territory of the Russian Federation and is not exported to the West.
Popularity comes to analogues of Western projects (for example, Facebook and Vkontakte). But borrowing an idea is not always justified: make allowances for the audience.
The problems associated with financing a business are felt much more strongly. Crowdshifting is not developed in Russia, it is extremely difficult to get a bank loan for business development. You have to rely on your own start-up capital.

Internet projects and startup

The most promising area of development today is the Internet. No wonder startups are most often called projects in the network. This allows you to get huge profits at a minimum cost. What are only the already mentioned social networks, as well as Wikipedia, Skype, YouTube video base and so on.

Project implementation stages: one idea is not enough

A simple example of a startup that does not require sky-high costs is online trading. Especially if it is wholesale sales of certain categories of goods from China. You buy a product and sell it with a markup of 200-300 or even 800%. Clothing, toys, and the like will sell well and help you save up a lot of money to open a store or expand your range in the future.

Stages of startup development

The researchers argue that any startup project consists of six phases of implementation:

The first phase is called "Pre-seed". At this stage, there is a clear idea of what is needed, for whom and why, but there is no specific implementation plan.
"Sowing" is the second stage. The market is studied in detail, a business plan is drawn up. This stage requires not only an original idea and systematization of plans, but also an orientation towards the search for investments.
The startup prototype provides for the implementation of a working model designed to function in favorable conditions.
The alpha version is designed for testing. In its process, shortcomings and negative aspects of the project are discovered, which must subsequently be eliminated. The working model is corrected, defects are removed.
Beta version (closed version) - a full-fledged model of the project, ready to serve everyone. But to study all the shortcomings, developers open it only for a small circle of users. In fact, this is an extended version for testing. At this stage, there should already be investments and commercial partnerships.
Beta version (open version) - everything is ready, the project is launched for sale, a full-scale advertising campaign is underway.

How to start your own business: implementation of ideas

Let's talk about how to start a startup. We have already figured out what it is and how the platform works, on the basis of which a small business develops.

Experts advise, first of all, to mentally and psychologically prepare for such a difficult task. A novice in business must understand that he works primarily for himself, assistants and partners will leave sooner or later.

It is difficult not only to find a new idea for the project, but also to select a team

When calculating the time for preparing a project, it is better to tune in to a tough, long and unfavorable period. The implementation of the idea will most likely take several years, not months. A prerequisite is a properly selected team, and you must be its leader and manager. With the right people you can achieve a lot, with a bad team you won't get far, even if you have a brilliant idea. Do not trust the investor 100%. Be ready to switch investors if necessary to get the maximum benefit.

Where to find an idea for a startup

It doesn't take a genius to come up with something worthwhile. Minimal creative inclinations and the ability to analyze can “squeeze out” a useful thought from everything that surrounds you.

Many novice startupers try to create their startup according to some general scheme, a general rule. There is no single rule, as well as a single way to create a startup, and cannot be. Each successful and unsuccessful startup had and will have its own nuances of creation and development, its own mistakes. Everyone should create their own startup in their own way. But there are some general steps and rules in creating startups.

Introduction.

Currently, the interest of businessmen and investors in startups continues to grow. Everyone counts on success, despite the fact that, as statistics show, only no more than 10% of all start-up startups get decent development.

Today, a huge number of people are worn with new technologies. At least they consider them new, highly demanded and promising. Some are trying to create their own startup to implement their idea, but do not know how to approach it.

How to self-assess the prospects. In this article I will try to give some advice on how to start building your startup, how to start implementing your idea.

Create your own startup - where to start.

Many people think that the creation of a startup begins with the idea of a new product, new technology, new service. It seems to me that the creation of a startup begins much earlier. Only a person who is prepared, competent, educated can create his own startup. This is how the entire world experience of creating startups shows.

And in this way, a startup is significantly different from Opening your own small shop or bike rental (examples are completely arbitrary) can be done by almost everyone. This does not require special literacy. An illiterate person will not be able to create his own startup.

So my first and perhaps most important tip is:

Become an expert in your chosen field.

Just a competent specialist. Most modern startups are built in the field of high technologies, in special areas - electronics, medicine, programming, biology. They just don't come there with their ideas from the street. In order to become a specialist, it is necessary, first of all, to get an education.

And then work in specialized companies and learn from leading experts, building up the knowledge base necessary in the future. And do not forget to generate new ideas in the chosen direction.

This is how you can become a specialist, enter the market with your ideas, attract investors, build your own startup. Investing in yourself, in your education is the most profitable type of investment.

Gather a team of like-minded people around you.

A lot of startups were started by young people from their student years. Today it is very difficult to create your own startup alone. Most of today's successful startups are created by groups of like-minded people. Therefore, when thinking about a startup, you should focus primarily on people, and not on a product, technology or money.

Gathering a team of like-minded people is not easy. And it is best to do this as a student or at the enterprise where you work. Well, with a team, you can generate ideas and implement them much more successfully.

Communicate and discuss ideas with professionals of different specialties.

It's great if the future startupper is a specialist in various fields, for example, in electronics, programming, medicine, biology, economics, etc. But this, of course, is a utopia. Such ingenious diverse specialists simply do not exist. But it is precisely at the junction of various areas of science and technology that a lot of prospects for new ideas open up.

Therefore, the communication of specialists from different areas is very useful, promising and more than once gave birth to a lot of new products.

Create your startup to solve personal problems.

This refers to problems that prevent people from living comfortably. Look closely at what prevents you from living, working or relaxing, and fix what you lack for this. It often happens that many people face certain problems and difficulties. Pay attention to problems that you can't find solutions for. Perhaps there are ideas for startups there.

I'll give you an example. A real misfortune forced a professor from Tel Aviv University to create his own startup, and then the ReWalk company. He had an accident and was unable to walk after it. The man rode in a wheelchair for two years, after which he invented the exoskeleton. Today, ReWalk products are sold in the US, Europe and Israel, helping injured people walk again.

Learn to take responsibility.

Thinking about a startup, you need to understand that at the first stages, almost everything connected with it will have to be done by yourself. As they say, you have to work with both your head and hands. To promote ideas, look for an investor, create samples and even clean the premises. No kind uncle will come and do the work for you.

You may have to work for days with short breaks. No wonder many startups say that the slogan "Die but do" was the most important thing in their lives.

Stages of creation and development of a startup.

As I wrote above, there is no single way to create and develop a startup. But there are certain stages that, as a rule, most successful startups go through. There are usually five or six such stages (depending on the details) and they cover the entire period of the startup's existence - from finding and testing an idea to turning a startup into a large company. Let's dwell on them briefly.

First stage -"sowing" (Seed).

In my opinion, the main stage at which most of the unsuccessful and improperly organized and unclaimed startups are eliminated. At this stage, almost the formation of a startup takes place.

Stage "sowing" can be divided into several sub-stages. Some authors distinguish them into separate stages, which is not entirely true, because. but they are executed in parallel at the same time.

1) Presowing ( Pre — seed ). Search and formation of a clear idea among the founders of a startup, elaboration of the market need for the product of this idea, elaboration of technical ways to implement the idea. The result of this sub-stage should be a market research, a business plan and a generated terms of reference for the product.

2) Create a mockup or sample product . A mockup or prototype of the product is being created. It is tested and refined, the price of the product is adjusted. The market is being checked, demand is being studied. The search for investors begins.

3) Refinement of the layout or sample of the product. The layout is being finalized. Or a new sample is created that is fully consistent with the proposed idea. The sample has a fully functional status and can be presented to both investors and consumers.

4) Search for an investor. The search for an investor or sources of further financing ends. The main indicator of the success of a new idea is the willingness of investors to invest in its development. Contracts are signed with investors.

At this stage, the "sowing" ends. And for many (most) startups that have not found an investor, their activities cease and the project fades. Well, the startups that successfully passed this stage and found an investor go further.

The second stage is the launchstartup stage).

After the product is tested and an investor is found, you can start producing it and enter the market. The competition begins. It is at this stage that both the startup and the product are most at risk. The product must show its advantage over existing ones and be liked by the consumer. If the consumer remains indifferent to the product, the startup story may end there.

The third stage is "growth" (Growth stage).

After the idea and its product have survived in the competition, the product has found its consumer and is in demand, it is necessary to increase its output. You should pass the break-even point as soon as possible, start making a profit, start paying back the funds invested in the project.

The fourth stage - "Expansion" (Expansion stage).

The goals set by the startup developers have been achieved. The product is in demand and successfully sold, the brand becomes recognizable. A stable high income allows you to conquer new markets and develop the company.

Fifth stage - "exit" (exit stage).

At this stage, developers and investors decide what to do next. There are many further paths. For example, continue to develop your company, capturing new markets. Or sell it completely to larger companies.

Often, investors who have financed a project sell their shares to other companies, while making a good profit.

I gave all the stages of startup development. But it is not necessary for a successful startup to go through all the stages of its development. Very often, a good startup is bought by large market players at an early stage, and then they themselves promote the product.

Conclusion.

New markets and new products are constantly emerging. It is even difficult for the average consumer to keep track of them. For example, mobile communications or computer technology. A person does not have time to purchase a new model, and after a year it is already outdated.

Mass products from large companies today create many opportunities to express themselves in various directions.

And for observant, competent, enterprising people, they allow you to create your own startup.

Many entrepreneurs give up on their dreams too soon, mainly for two reasons: lack of knowledge or lack of resources. There is no exact answer to the question: “How to launch a startup?”. However, we can give you tips to help you launch your startup and make your dreams come true.

There is no single, best approach to launching a startup. This is done by trial and error, which varies from industry to industry. A lot also changes over time.

The biggest mistake most entrepreneurs make is to look at the future through rose-colored glasses. They think that their idea can change the world and forget that the startup idea is only the first step.

Another fact is that the market is saturated today. Customer expectations have risen to the point where serving them is a very difficult task.

Answering the question “How to launch a startup” is difficult, but realistic. Let's take a look at the best approaches to launch a startup in 2019.

Come up with a brilliant idea

To begin with, you should have a clear idea about your startup.

What is a brilliant idea?

You don't always need something unique. It may be an improved version of what already exists and works well in the market.

Your startup should be best in class, not first in the market.

Google was not the first search engine, and Facebook was not the first social network. They are simply better than their peers.

A startup idea should guarantee you success. The only way to ensure success is to know that your startup delivers what your potential clients need.

You don't have to dance to the tune of investors. You must have your own opinion as well as net worth. If the idea is good, then obviously other people will chase after it. It won't be easy to compete.

If you find something that others don't, it will give you a competitive edge. You can take the first position. You can start developing your solution. You can acquire a customer base. All this before your competitors realize that such an opportunity exists. By the time they realize it, you will already have gained momentum and it will be harder for others to force you out.

Always remember, your idea is the first step to success. So take your time. Think, dream, and you will come up with something brilliant.

Analyze current markets and trends

If you have a startup idea, it's time to ask yourself: "Who is this idea for?".

You need to take into account the characteristics of your potential customers, such as age, gender, relationship status, income, hobbies, etc.

You need to dig deeper to determine your buyer persona, customer requirements, aspirations, and the problems you can solve with your product or service. Talk to your audience about your idea and get feedback. A good practice is to identify your target audience and communicate only with them.

Even if the chosen niche is large enough, there is money here and it is easy to enter here - you need to meet several criteria.

The idea behind your product or service needs to work in a market where customers are already buying similar products or services, but they can't solve some of their problems.
Your target audience should show demand for your product by actively looking for a solution that solves their problem.
Customers must show a strong interest in your product or service.

Determine product market fit

Achieving product-to-market fit requires a thorough understanding of the target audience. You can only win the trust of your customers if you solve their real problems.

Make sure you're solving a big enough problem. If your solution is not 10 times better than a traditional product or service, it will be difficult to find your place in the market. Talk to strangers, family members, friends and colleagues and see if they will pay for your product or service.

Beta launch

Now is the time to see how viable your product is.

The minimum viable product is the version of the new product that allows the team to capture the maximum amount of proven customer knowledge with the least amount of effort.

You are selling a concept and providing a minimal set of features to a focus group, not to everyone.

Every company starts with a basic limited product model (beta). Even Google launched their search engine with a basic HTML page to see how their users would react to it. Betas also allow startups to understand which direction to take. This allows you to recognize problems and then find effective solutions.

Build a powerful team

To launch a startup, recruit a skilled and qualified team to either help or guide your execution plan throughout the process.

Even the best business ideas can fail if you don't have the right people to execute them. In fact, not having the right team is one of the biggest reasons most startups fail.

Three key elements of a powerful team:

All team members work towards a common goal.
Each of them is interested in this idea.
They all strive for growth, because this is the only success factor

Therefore, hire a close-knit team of people who are ready to move mountains.

Many entrepreneurs place too much importance on their idea or brand and neglect the value of their employees.

Recognize the fact that you cannot do everything alone. Hire the right people, make them grow and be happy to work with you. Also, don't be afraid to fire people who aren't right for you.

Networking is the key to success

No matter what your business model is and who you sell to, connections will be profitable for you.

When starting a startup, you should talk to potential buyers to determine their needs and desires. Likewise, connect with influencers to get feedback on your product. If you need some kind of investment to launch your startup, talk to investors and find out what type of startups they are investing in and what they see in those startups.

When you connect to the entrepreneurial community, you never know where life will take you. You may be able to build a relationship with a mentor, or simply meet interesting people from whom you can learn about life, entrepreneurship, or get valuable ideas.

Immersing yourself in a network of like-minded business owners gives you an insider's view of the industry and allows you to develop relationships with experienced people who have already launched a startup and can offer advice.

Also, if you are looking for a co-founder for your startup, your network is the first place to look because your connections include like-minded and experienced people.

Study your competitors

To compete in a market that is already crowded, it's important to know who your product's direct and indirect competitors are.

At the initial stage, you cannot compete with larger enterprises, since they do not have the same problems that small startups have. And in most cases, their budget is hundreds of times larger than startups.

You can analyze your competitors by identifying:

Who are their clients?
What technologies do they use?
How much can they spend on marketing?

Before launching your startup, make sure you have a good understanding of the industry: trends, current market conditions and latest news, and that you know potential competitors.

Knowing your competitors is invaluable when starting a startup. You will understand how to position your brand so that you can stand out and succeed.

When launching a new product, it's tempting to look at other products or competitors to see what works. Startup founders tend to have their own preconceived notions about which channels are effective and which are not. You may end up missing out on great opportunities.

Communication with customers is one of the best (and cheapest) ways to gather real information about competitors.

Choose between fundraising and initial launch

People who start a startup follow two financial models: fundraising or initial launch. Each has its own advantages and disadvantages.

The initial launch is suitable when you have enough funds to launch your startup on your own. However, in this case, you will be the only interested party, and success or failure will depend solely on you.

Fundraising is a possible option if you are starting a startup but have limited funds and need the help of venture capitalists. Investors will help you grow your business by sharing capital. But chances are they will take your business in a direction you don't agree with.

When making a decision, you must be wise and understand the differences in both approaches, as your decision will have a big impact on the growth of your business.

Conclusion

As an entrepreneur, don't be afraid of failure. Feel free to explore new markets. Better to try and fail than not to try at all. Many successful entrepreneurs have failed, and that is how they found the recipe for success.

Don't say, "My startup failed." Say, "I failed my startup." Take control of your life to get the best results.

Just remember that your determination and the right approach are the keys to successfully launching a startup.