First of all, chase away your fears. Starting a new business, especially in this economy, may be tough, but it is possible. As a matter of fact, you just need three things: an idea, good professionals, and realistic funding. Read below about the six things you should consider and prepare before you launch your startup.
1. Make sure you can do it
Should you start a company? Do you have what it takes? Are you good with people? What about money? Are you a problem solver? Are you between 18 and 40 and you don’t mind risking and losing your savings? Do you actually want to do it?
2. Find the Idea
You do not necessarily need a unique idea. You can just optimize an existing idea. An idea for a startup, however, is just the beginning. You may realize your initial idea is revised and updated as you are moving forward and this is the time to prove you are flexible and you can modify your initial business plan to better serve your idea.
3. Track down your competition
Research will now become your best friend. Learn by heart anything related to your competitors so you can outcompete them. Find all the bugs and glitches and make sure you can deliver a product free from any negative user experience.
4. Identify your customers and their needs
Who is going to buy and use your product? Figuring out the demographics and psychographics of your potential customers will help you segment and target your audience effectively and position your product in the best way possible.
5. Hire professionals
Can you do everything on your own? Chances are that no, you can’t, and this is not a bad thing! This is why you will at some point need to hire outside assistance. Developers, designers, account managers, marketers… Will they be in-house or freelancers? This depends on your needs. Remember this isn’t a one-man show.
6. Raise money
Find investors and collaborate with an accelerator or an incubator. Raising money for a startup may take longer than you think, so be prepared! Once you raise it, be careful and don’t waste it. Don’t rent expensive offices, don’t hire people that don’t have any work to do, don’t buy the most expensive equipment. You can do all these once your revenues are high enough.