The startup ecosystem in India is among the fastest-growing in the world. The development of creative companies within the Indian technical landscape has grown dramatically, making it the third fastest-growing location for technology startups in the nation. The actual development process of creating a startup begins with the hunt for a worthwhile idea or problem to solve and the formation of an enthusiastic founding team with a common goal.
Startups need to have a strong and dedicated founding team in addition to the innovation process itself, from idea to value-generating product and business model and develop both into a growing business and organization that captures the value being created as a great company.
What is a Startup?
Startups are new companies founded to produce a unique good or service, put it on the market, and make it impossible for customers to reject it or find a replacement.
One or more entrepreneurs start startups when they want to offer a product or service for which they believe there is a demand. Because these enterprises often have high initial costs and minimal profitability, they seek investment from various sources, including venture capitalists.
A startup rooted in innovation strives to address current product flaws or develop new categories of goods and services, fundamentally changing long-established methods of thinking and conducting business for entire industries.
How to launch a startup?
The following are some of the factors to consider when establishing and laying the groundwork for a startup company:
Analyze the industry
The first and foremost step is to identify industry trends and identify the best one for you. These days the tech-based industry and health-based startups are on a boost considering the rising demand for interactive technology and the increasing awareness of healthy and balanced life.
Identify the prospective challenges and the measures to reduce them. After identifying the suitable industry/sector for yourself, reach out to industry experts and counsellors to get more insight into the industry’s working and try to identify the flaws in the existing working structure and output.
Communicating with the target market can also be a good option for knowing consumer preferences and demands. For example, to analyze the probability of success of a startup working in marketing lectures, reach out to various b-schools and marketing enthusiasts and know about their existing limitations.
Know your competitors
The next step should be to study and know your existing and prospective competitors in the industry. Go through the website and social media handles of the existing brands, research deeply about their product or service, and analyze their work, achievements, and challenges.
The main goal is to understand what your competitor does so that you can do it even better.
Focus on creating a great product/service
Your initial offering of a good or excellent product or service is highly required to attract and retain consumers. It must meaningfully and significantly differentiate from the products offered by your competitors. This fundamental idea is the basis for the startup’s growth and for boosting it to achieve great heights.
Get your product out there as soon as possible because early customer feedback is one of the most effective strategies to help you improve it. Many firms find that having a “beta” test product helps them identify flaws as they learn from user feedback.
Identify the source of funding
Whether you will need a professional investor, or will you be able to bootstrap your company? It is necessary to identify how you will raise funds for launching and running the startup, at least for the initial phase, till it earns sufficient revenue to finance its operations.
Many options are available to raise capital, like borrowing money from friends and family, borrowing loans from banks and lenders, or reaching out to angel investors and venture capitalists.
Start your research immediately, but hold off on approaching investors until you have a plan that includes liquidity for the near future. It is advisable not to dilute the company’s ownership for raising investments unless there is no other viable option available.
Chalk out a complete business plan
A business plan lays out the measures you must take for a fruitful launch and ongoing expansion. This document is essential to attract professionals to work for you and seek and retain and guide the company’s work.
Put together all the main components and aspects related to your business, including:
- Mission statement and vision of the startup
- Description of your business
- List of products or services
- Analysis of current as well as potential market and opportunities
- Marketing and promotion strategies adopted
- Financial planning of the organization
- List of decision-makers along with important designations in the organization
The business plan document should be kept handy even if you don’t need it in the present scenario so that it can be used for future hires, raising capital, and expansion.
In the past few years, the nation has witnessed an increasing trend of launching startups by individuals. The founders of these startups are mainly youths who either have recently completed their graduation/post-graduation or are currently pursuing their graduation only.
It is very inspiring to see these youths leading the nation towards an economy dominated by entrepreneurs and industry experts. On the other hand, there is a huge risk of their highly influential ideas turning into the trash if not implemented properly.
Thus, if the points mentioned in this article are followed, then the probability of failure of the startup can be reduced significantly.
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Frequently Asked Questions (FAQs)
Q1. When is the right time to start a startup?
Ans. There is no ideal time to start a startup. Whenever you have deeply researched your idea, you can launch your business.
Q2. Which is more feasible for funding: Debt or Equity?
Ans. Both debt and equity have their own merits and demerits. You need to make your business plan and conduct an analysis to understand what is more suitable for you.
Q3. Which is the best industry to start your own business?
Ans. There are many emerging sectors which is considered very profitable to start a business. For more information on the best startup ideas, click here.