What is a Startup?
A startup is an initiative by an entrepreneur to develop an idea into a finished product and implementing a monetization strategy on it. Startup companies has been vital for today’s industrial growth. The hunger for new innovations has not yet be satiated. Hence bringing the huge step in tech companies. Startups have opened the link between ideas and innovations. Economic growth has now dependency on startups either direct or in small vital contributions. Startup statistics defines the gap between two economies and their astonishing input into gross domestic product.
Startups has recorded high levels of failure but their endurance is essential for growth. Startups are categorized in six developmental stages i.e. pre-seed, seed, early, growth, expansion, exit.
Different Stages of Startup?
Pre-seed stage also regarded as the idea phase is the foundation of any startup. It can also be stated as the idea factory. The idea has to be enlightened to see if it really solves the problem.
Hypothesis validation occurs in the seed stage which is the second stage.Seed-capital is invested at preliminary stage of the startup. Sources of capital includes savings, family, friends, bank, etc. 500 startups has been a major contributor to most start ups in the USA.
Early stage is being next and key stage in the startup. This is the stage where the idea is converted to a minimum viable product and subject to testing. It is also the launching stage of a product. Being in close contact with customers is very vital at this stage because it will enable you to put key components in its final version.
Growth and Expansion Stage
Growth and Expansion stages are stages where the company focuses on widening company’s reach and increasing labor and while meeting the customers’ demands. It is a crucial stage because it is the stage where the startup company’s fortune is determined. A focus on marketing is important.
Exit stage is the last stage but it is not necessary unless the problem to be solved is non-recurrence. Each of these stages keen consideration must be put to the problem being solved and its changes over time.
How to start your own Company?
For starting your own Company Firstly, You need is Idea which can solve Small or large Section Problem.
Secondly, If you find your idea which you think can solve problem of People. So now you have to validate your idea by doing Research and asking your targeted Audience about it.
Third, After doing Research and Finding your Targetted Audience Now you need A Team who can Match your vision and help you in converting your idea into MVP which you can show your Initial audience for Testing and get early traction.
Fourth, Incorporated your company and also Register it into Startup India Website for Benefits which are given by Government.
Fifth, Now Its Time when you can Expand your Company in more Cities/Countries and Increase your revenue or you can also go for funding(We see next time Funding vs Bootstrapped which is good).
With this Five Steps you can Start your own Company but always focus on Problem which you solve and Improve your App/Product by getting feedback from your Targetted Audience.
Advantages and Disadvantages of Startups
There are a variety of advantages to working for a startup. You get Many Opportunity and Responsibilities which help you in Learning many things. Startups have fewer Employees than well established companies, so You get may Responsibilities and Roles which Teach you many things and you learn alot.
You get many Incentives and Rewards as innovation is welcomed and you can Turn your idea into Product.
If you join It in Idea/Early Stage then you can Also get Equity and if this turn into unicorn or take its ipo, then you can become millionaire or sometimes multi millionaire.
Just like Coin have two sides, Startup also Have Disadvantages too with Advantages. Like your job is not fix in that startup and also if it cannot raise money or have not sufficient Capital for Running Operation then it can also Shut down.
So If you want some adventurous then Startup is good for you but if you want Secure Life then Join Well established Company.
3 thoughts on “5 Steps for starting an Startup”
very nice content
Pingback: 10 ANGELS INVESTOR FOR STARTUPS - Grownity
Pingback: Roadmap for becoming Software Engineer in faang - Grownity