There are many things to consider when starting a company, and when we think of starting a company we play it in our mind over and over, and most of the time it looks bright but turns out dark. When you are considering to startup a company, it is essential to ask your self as many questions as possible and give an honest answer. The honest answers will help you to find a solution before you startup and it will help you to avoid failure in business. This article is step by step startup for your ideas to come to life.
Step one is to come up with an idea, or if you have an idea then this article will help you to understand from step 2. The idea will not help you successful, but making your ideas come true will make you the successful person in life. There are many people that have great ideas and those ideas are amazing that it would make them very wealthy people. However, only a few people can make their ideas come true, therefore, when you coming up with an idea, it doesn’t have to be something totally new. You need to look at the market gap, and you can come up with an idea to fill in this gap. Some people come up with ideas that are impossible to achieve for them but it is possible for someone else.
When you have an idea, don’t just go up to anyone and tell them your idea, hoping that they will make your ideas come true. They will never make your ideas come true, only you can make your ideas come true, therefore try to think of best ways to make your ideas come true. It is depending on your idea, if you have a tech idea then you need the prototype, without the prototype your ideas are not yours and it can be stolen easily. If you can develop the prototype of your idea then it’s great but if you can’t develop your idea then you need to find someone that can develop your ideas. It is scary to share your ideas with someone unless you give them half of your share and make them one of the co-founder. The co-founders are those who have a significant contribution to your team, therefore, the person that can develop the idea is the significant contributor. Having said this, don’t be greedy!
Now with the first two steps, you start to form a team, which is one team member is missing, a team member that knows how to pull an investor. Without this person, it is very hard to make your idea come true. This person does not necessarily have to have a good contacts but he needs to know how to present your ideas to investors. Finding investors to present is not so hard, but it requires the right person to present.
Preparing the business plan is the most important part of the startup, and answering these questions are very important:
Who are the team members?
The team members must have a significant contribution to the business otherwise the investors will ask a question ‘what is their contribution?’.
What is the cost of investment?
If you truly want to make your idea come true, then you need to understand the cost and keep the cost as low as possible. The startup cost and the cost of operation must be explained in details. Make sure the team members get very little to none salary, to reduce the cost of investment. If you put your self a high salary then investors will not invest because every month goes by a cost for the company which will exhaust the investment very fast.
What is your ambition?
This is a very tricky question, the investors hate entrepreneurs with an ambition, because they will take up projects to fulfill their desires and they will rush to expand the business which will increase the chances of failure.
What are the required documents?
You must do full research on the documents and time to obtain the documents. Just a simple research from the internet is not gonna be enough to convince the investors. You need to go in person and find out the exact documents to register the company and obtain the license for all the things.
Who are your customers and how will you get your customers?
Customers can be in many forms, a government can be your customers if you take government projects, big companies can be your customers and or public can be your customers. How will you get this customer? Make sure you give details on how you will obtain these customers.
What are your short term and long term goals?
Now, this is the question that you really need to give step by step strategy to achieve your goals. You must not simply tell them your goal, but you must tell them your step by step strategy to achieve your goals. The investors love entrepreneurs that know how to achieve results.
Once you get your investors then the hardest part starts, some entrepreneurs think getting investors means success. Nope, it is not!, Once you get your investors then you are obligated to achieve results. You need to put your team to work and start demanding for results efficiently. That means they have to start hiring employees that give results, registering the company and obtaining all the license required.
These are the basic steps you need to think about when you want to startup, in conclusion, you need to focus on asking so many questions from your self because the investors will ask so many questions to make sure that you are the man with action rather than just a man that bull shits.