Did you know there are over 41,000 startups currently operational in India? However, we can only recall a few celebrated names. The competition is fierce. So, if you’re trying to crack the code of how to build a startup, you need to be innovative about it because it isn’t just enough to know how to create a startup, but one must also know how to make a startup thrive. Here are a few tips to help you understand how to launch/establish/set up a startup that will not fizzle out within a few years of its inception.
1. Realise your idea
If you are looking at where to begin and how to launch a startup, an idea is obviously the first step. This idea will be your USP or Unique Selling Proposition. So, do you have a business idea already? Is this idea well-defined yet, or is it in a nascent stage with no particular system or guidelines yet? Until you have a structured idea, you cannot proceed because the next step is developing a business model.
2. Make a business plan
Many businesses fall apart right after launch because of poor planning. You have to answer certain questions at this stage:
· Is it going to be a B2B or a B2C service?
· Can you offer unique services?
· How much profit do you intend to make?
3. Conduct market research for your product
You have a product, but is there a demand for it? Sometimes, innovators forget how a consumer might process their offerings, which is why brilliant ideas often bite the dust. Conduct a research of the market, find out if it’s too shallow or too saturated; that’s how you establish a startup.
4. Analyse your competitors
Want to learn how to create a startup that lasts? Study your competitors. According to the Economic Survey report for 2020-2021 presented in parliament, there are 38 startups that are valued over $1 billion, often labelled as unicorns. How did they succeed? How much profits have they made? What’s their growth percentage? What were their downsides? Do not just compete with them; gain from them and their experiences.
5. Study the operational needs of the business
When researching on how to build a startup, keep in mind you would need systems to manage your human as well as capital and infrastructural resources. You would need to set up micro-models to invoice customers, maintain your website, keep your employees disciplined, address customer grievances, strategise packaging, among much more.
6. Brand your business
You need a brand and a logo for your startup business. A catchy tagline and a logo would create a recall value for your brand. The more customers recall you, the higher the chances of getting a new lead.
7. Learn all about digital marketing
When you study how to build a startup, you come across various experts who suggest that a strong online presence is necessary. A website, an email list, and a presence on social media are all required to reach your customers.
8. Get to know the legal requirements
Is your business going to be a sole proprietorship or a partnership, and if so, how many stakeholders would you permit? Everything from filing taxes to your personal accountability is influenced by the legal framework of your company.
9. Always learn from your mistakes and don’t procrastinate
Successful people learn from their mistakes. If the path to your goal is obstructed, seek an alternate route. But, if you wait until everything is perfect before launching, you may never get around to doing so.
10. Consider business funding options
Which option suits you better, a business loan or an investor? The amount of funding you raise depends upon your creditworthiness, business idea, and proposal. Or will it be a self-investment via mutual fund investments? When deciding on how to launch a startup, a foolproof fallback plan is a smart way to go.
What’s profitable now may not be profitable in the future. Always find out if there is a better or more innovative approach to sell your goods and services. Learn everything you can about your market.