The Startup Company is founded by individual founders or entrepreneurs to search for a repeatable and scalable business model, These companies are often initially bankrolled by their entrepreneurial founders as they attempt to capitalize on developing a product or service for which they believe there is a demand.
You may ask yourself how could I start my startup? Well, in this article we will introduce to you some steps to start your startup. You must know that the failure rate of startup companies is very high so failed entrepreneurs, or restarters, who after some time restart in the same sector with more or less the same activities, have an increased chance of becoming a better entrepreneur.
is a popular set of principles to create and design startups under limited resources and to build their ventures more flexible and have a lower cost. It is based on the idea that entrepreneurs can make their implicit assumptions about how their venture works explicitly and empirically test them. lean startup focuses on a few lean principles:
- find a problem, then define a solution.
- engage early adopters for market validation.
- continually test with smaller, faster iterations.
- build a function, measure customer response, and verify the idea.
- evidence-based decisions on when to pivot by changing your plan’s course.
- maximize the efforts for speed, learning, and focus.
A key principle of the startup is to validate the market need before building a solution Because startups are uncertain, you don’t want to waste time or money building something that has weak demand. Validating your ideas before deciding to invest heavily in building something is a wise move no matter how confident you are.
it is used to understand the customers’ need in an engaging manner. Design thinking and customer development can be biased because they do not remove the risk of bias because the same biases will manifest themselves in the sources of information, the type of information sought, and the interpretation of that information.
Decision-making under uncertainty
In startups, many decisions are made under uncertainty, and hence a key principle for startups is to be agile and flexible. Founders can embed options to design startups in flexible manners so that the startups can change easily in the future.
Startups may form partnerships with other firms to enable their business model to operate. To become attractive to other businesses, startups need to align their internal features, such as management style and products with the market situation. Startups usually need many different partners to realize their business idea. The commercialization process is often a bumpy road with iterations and new insights during the process.
Startups need to learn at a huge speed before running out of resources. Proactive actions enhance a founder’s learning to start up a company.
Business Model Design
With the key learnings from market validation, design thinking, and lean startup, founders can design a business model. However, it is important not to dive into business models too early before there is sufficient learning on market validation.
when you launch your startup you must take these costs into consideration, accountant’s fees, legal fees, registration charges, as well as advertising, promotional activities, and employee training. Also called startup expenses, preliminary expenses, or pre-opening expenses.
Finally, we will introduce some examples of successful startups that become popular nowadays, Facebook, Linkedin, Buzzfeed, Steadybudget.