Basics of a startup
How many times have we felt annoyed at our nine to five jobs where we have to come up with uncountable excuses to do as we wish. But what if you decide to be your own Boss? What if you plan to begin your own startup?
It definitely sounds intriguing but it is not as easy as you may think. Therefore, you need to know a few basics before you step on this journey.
What is a startup?
A startup is a business venture which is initiated by an entrepreneur or a group of entrepreneurs having an idea that adds value to society's needs.
The idea of a startup is initiated even before the official beginning when the founder or the co-founders work together in building a team in developing their idea into a business.
The founder/s and the team members work together to join their skill sets and convert them into potential solutions of the market problems and fill the market gaps by selling their idea and monetizing them.
The foundation of a startup is initiated by the team and it is highly important for the team members to have a common vision to generate the ideas and converting them into monetary terms to ensure growth and development of the business in the long run.
Questions to ask yourself before beginning with your startup journey
Before you decide whether or not to commit yourself in this long-term journey there are a few questions to which you must answer yourself and some of these are as follow:
1. Is there a market need for my idea? This is probably the most important question to ask yourself. If there is a market need for your idea then you can expect a lot of consumers to ask for your services because of the gap present in the market. Otherwise, you will just face a lot of competition from other market competitors who are already established.
2. Do I have enough funds to afford it? Any startup requires a certain amount of funds specially in the earlier stages when there is no expectation of the profits. You need to ensure that you have enough money in your bank to support your business for at least six months.
3. Is your business going to add a value? The main purpose of establishing a business is to earn money and adding value to your customer's life. In case your business doesn't seem to fulfill at least these two objectives, you need to rethink your idea and make necessary changes.
4. Does the startup have a vision for the long term? Another important aspect is that if you see your startup having a long-term vision. After investing your time, money, and efforts, it is critical to make sure that your company is here for the long run and you are willing to commit full-time.
5. Am I ready to let go of my current lifestyle? Walking down this road will be one of the biggest decisions of your life because you will need to alter your whole lifestyle to make this business work. You will be required to let go of your social life and your past time hobbies along with your luxury holiday plan to save some extra hours and money for endless upcoming meetings and presentations.
6. Is my startup going to produce good money in the future? A creative idea is an important need indeed, but if your business is not going to earn you money in the future then it is of no use. That is why you need to ensure that your startup idea can be monetized and promises you good profits in the near future.
7. Can I sell my idea to my biggest critic? This will be the ultimate test of your business as if you are able to convince your critic to buy your service or product then you can expect success. Often, our biggest critic is either our mother or a blunt friend who has been nothing but honest with us. Try to pitch the idea of your service to that one person and if he or she is ready to put their money on your idea then you are good to go.
8. Am I aware of the legal necessities? Most of the businesses are supposed to perform at least a few legal formalities to sail the boat of your business smoothly. It is a must to check as if you need to have a license before selling your product or have you already registered your business under the authorities and many such formalities.
9. Is it worth all the things that I am about to give up? Once you have decided to sail on this boat you would have to give up so many things which may not even have imagined yet. If you are ready to lose your social life and your stable job only then you should step forward because this might be a life-changing decision for you as well as your family.
10. Am I ready to handle the losses if the odds are not in my favor? One of the ugliest truths about the startups is that most of them do not even stay in the market for more than a year. This can be truly hard to accept but you have to ensure that you are ready to face whatever results come along the way.
Once you have positive answers for all the above questions, you are absolutely ready to pursue your dream. However, be ready for a lot of ups and downs as your startup journey is going to be a roller coaster ride!