How to start a startup

How to create a startup pdf

How to start a startup? The first thing you need to define is a business idea as solid as possible. This is the main factor that will set the company on the road to success, but it is not easy to transform a simple idea into a real business concept. To achieve this, it is essential to specify the following issues:Creating a startup from scratch requires to be very clear about the business concept, so it is essential to determine it firmly before continuing with the process.we recommend you to read this other article about How to make a simple business plan.

Having clear what a startup is, you can follow all the steps to create it. In this process, the value proposition is very important, that is, the differentiating factor of the company that makes it better than the competition in the same sector.For the customer, the value proposition is essential to decide which product to buy or the service hired. It is the element that marks the company’s entire business strategy.

How to start up

There are two fundamental elements that define startups: scalability and innovation. Scalability allows to have a business model that can grow without acquiring additional fixed costs. While innovation is the factor that usually allows that large scale through the use of technologies.

After having conducted a thorough market study, you will know what you are facing, recognizing your values, strengths and being clear about your objective. Likewise, you will be able to evaluate if your idea is viable to invest in it.

The value proposition is that key differentiating element that will make you stand out from your competitors in the same sector. It is what makes customers decide whether to buy your product or go for a similar one from another brand. For the most part, the value proposition marks the business strategy of startups.

Startups compete in a fickle market alongside big and not-so-big brands. In short, it’s a constant struggle. The more complete and transparent your brand is, the more notoriety it will have. Let’s not forget that the brand is defined by the perception of our customers or users.

Ideas for creating a startup

Although in essence a startup is a company, there are several differences between them and more traditional companies. Although it is common for the founder or founders of a startup to provide the initial capital necessary to launch their project, nowadays it is also common for them to seek external funding for the development of their product or service, i.e., they try to “sell” their idea to external sources that finance part or all of the project (such as business angels, incubators or accelerators, seed capital or crowdfunding or crowdsourcing models). Whereas a traditional company is mainly financed by the contributions of its partners with more medium-term profitability objectives.

They also differ in terms of specialization; startups tend to focus on the development of a specific product or service (which is the core of their business idea) and more traditional companies tend to operate in one sector, being able to offer different products or services within the same sector.

How to start a startup

Knowing the different ways of financing and choosing the right one can be key for a project to avoid problems in the future. Normally, the first funding is made by the founders themselves or their family and acquaintances (these investors are known as Family, Friends & Fools). However, in order to grow, larger investments are necessary and, for this, the figure of startup accelerators is essential, entities with support programs for emerging companies that usually include financing, training and contacts.

Being part of an accelerator can not only increase your funding, but also provide you with the basic ideas to know how to grow your startups in the future and make the business idea scalable, which is why choosing the right one is very important. “What sets an accelerator apart is its commitment to startups. Most offer general education, but not all of them assign specific specialists to optimize the operation of these startups,” explains Jordi Escruela, Deputy Director of Innovation at Correos and head of CorreosLabs, the parcel delivery company’s accelerator.

Eduardo José Cazorla