Launching a startup is a great opportunity to implement your ideas, knowledge, and skills. Many mistakenly think that a startup is necessarily associated with new ideas in the IT field. It is not entirely true, although many projects are being developed in this particular field of activity. First of all, a startup is a certain business model. Usually, it does not fit modern standards. During the development of the project, the team solves many problems and applies new ideas.
Successful business development is impossible without the use of digital tools. However, even their presence does not guarantee success. As statistics show, more than 90% of projects fail in the first year after launch. Do you have a unique idea that’ll change the world? You can realize your own project? Have you carried out all the necessary preparatory studies and analyzed the results? Does everything indicate that your idea is a competitor and will be in demand among people? Excellent!
You’ll be more prepared for a successful launch than most young business leaders. However, even willingness does not guarantee success. After launching a startup, you’ll have to solve many tasks and challenges. It is difficult to prepare for them in advance. Successful business development is always a search for new ideas and effective solutions!
The main reasons why startups fail
Only a few projects cope with the problems that arise after starting a startup. The first reason for failure is the wrong organization of business processes and teamwork. Today many business tools allow you to organize the effective work of a startup. However, not every leader has the experience and knowledge to use their capabilities. You can use Slack, Microsoft Teams, or Trello. Each corporate app has its own advantages and disadvantages. For example, if your project involves database processing and communication with a large number of clients, then you can use Slack with additional iterations. For example, using Slack SMS, you’ll raise the level of communication between employees, partners, and potential customers to a whole new level. Attend special courses or online seminars if you do not have enough experience in using business tools
The next reason for failures is an incorrect analysis of the market and competitors before launching a startup. Errors at the planning level are difficult to eliminate during project implementation. Especially if your product or service won’t be in demand among people. Therefore, it is better to hire a specialist with rich experience if you do not have experience in building a business model and similar studies.
The reason for the closure of most startups lies in the wrong organization of work processes and errors during planning. Lack of funding occupies a leading position here. After all, the majority of project creators are poor people who have just graduated from the university, and enthusiasts who want to realize their unique ideas. Most often, they do not have the finances that are necessary to successfully build a business in the early stages. Of course, the use of digital applications for organizing teamwork can save money, but they are not enough. After all, until the project starts to make a profit, you’ll have to spend money on salaries, bonuses, and other expenses. Therefore, the search for funding is the main task that the manager must solve as quickly as possible.
How to find additional funding
Today there are various ways to finance the early stage of a project. It is important to understand which ones are right for you, and what are their pros and cons. Sufficient funding in the early stages is very important for the successful development of a startup. Therefore, do not postpone the decision. Where can you find the money for development?
Borrow money from your friends or loved ones
This is the first thing most startup founders think about. After all, borrowing money from friends or relatives is much easier than from a professional investor. Of course, such an investor is initially more loyal and does not require complex procedures for processing transactions, prescribing KPIs, detailed reports, and presentations. The main risk is ruining relationships with loved ones if the startup does not take off. It can be very painful for both you and them. To avoid such trouble, make sure in advance. At the very start of the project, clearly explain what you plan to do with the money received and what scenarios are possible. People must be ready for anything.
Try crowdfunding platforms
There are online platforms where you can post a description of the project and where there is an audience, who wants to finance a startup. In fact, crowdfunding is the collection of money for the implementation of a project from a large number of small investors interested in your product/service for a fee. When choosing a crowdfunding platform, it is important to consider the theme of your project. For example, you should not post a technical project on a platform where artists and designers are located. The second important point is to correctly interest potential investors. Therefore, your project should be interesting and understandable to any person. Expand your idea and show it from the best side to get the missing funding.
Find business angels
Business angels are professional private investors who invest personal money, usually in the early stages of project development. You’ll find them at startup shows, hackathons, and other themed events. In addition, there are thematic forums and chats where business angels also communicate. It is important to be able to quickly and efficiently tell about the project.
A business angel will help you in the development of a startup, not only in terms of funding. As a rule, these investors have rich experience in business implementation. Therefore, they can give valuable advice, introduce experienced specialists, etc.
Launching a startup is just the first step. On the way to success, you’ll have to solve many problems and challenges. But do not panic and be afraid ahead of time. Thousands of implemented and famous projects have proven that this is possible. The main thing is to believe in yourself, your team, and your work. And of course, to look for and implement new ideas in a startup. Fortunately, it is much easier to find funding today than it was 10-15 years ago. Show your project from the best side and you’ll succeed!