How To Start A Startup in 2022? Understanding and dealing with numerous issues, including legal, financing, sales, marketing, intellectual property protection, liability, human resources, and others, is essential when starting a business. However, entrepreneurship is a hot topic. There have been many amazing success stories about early-stage startups that went on to become multi-billion dollar companies like Uber, WhatsApp, Airbnb, Facebook, and others.
It can be scary to start a business for the first time if you haven’t done it before. It takes planning and hard work, not to mention the time involved. Moreover, less than half of businesses survive for five years or more.
There are basic strategies that startups can use to get their company started.
How To Start A Startup?
1. Get Started with a Great Idea
The first step to starting a business is to find a problem and a solution. Because successful startups start with business ideas that meet the needs of a specific customer group, this is why they are so successful. Your idea does not always need to be new. It’s possible to update existing products and services in a way that is better for consumers. It can be as easy as:
- Modifying the appearance of the product
- Adding a new feature
- Using product customers love already
Apple, for example, started with Steve Jobs’ original idea of a computer. Since then, Apple has created improved versions to better suit the market. Apple has also developed new products such as iPads and iPhones over the years, making them more useful. Apple is adding a keyboard to iPads to make them easier to use as a laptop.
2. Create Your Startup Roadmap
Once you have settled on a startup idea, it is time to turn your idea into a viable business. This is business planning. Writing it down is one of the first steps to business planning.
No matter whether you start with an informal or formal plan for your business, writing business plans requires that you think through every aspect of your business. This allows you to examine your market and competitive position. It allows you to set goals, identify your key factors for success, and plan your strategy. You will need to analyze your financial projections and manage your money.
There are many types of business plans depending on your venture stage and your purpose. An informal business plan, such as the business model canvas, is a good idea for the early stages of your business idea.
You will need to present a formal business plan and financial projections to potential investors and lenders before you can seek investments.
An informal business plan can be anything, from writing down an idea in an idea notebook to sketching out a business plan or a lean canvas or even jotting down three sentences.
Eric Ries created the business model canvas in his book The Lean Startup. It helps to map out the nine core areas of a startup. These are the nine key areas:
- Customer Segments — describes your target market(s)
- Valuation Proposition — shows the value your product or service offers.
- Channels — outlines how you will reach each customer segment.
- Customer Relations — describes what types of relationships you will build with each customer segment.
- Revenue Streams — Reports on how to generate income from each customer section
- Key Resources — outlines the assets needed to make your business model.
- Essential Activities — outlines the most crucial activities that your business must perform to make your business model.
- Essential Partnerships — This identifies the people with whom you will form relationships to keep customer relationships, reach out to customers, obtain resources, and complete key activities.
- Price Structure — gives an overview of the costs to run your business model.
3. Get Funding to Support Your Startup
Every business owner is unique in the cost of starting a startup. Regardless of your startup costs, you will likely need financing.
- Family friends and family
- Angel investors
- Venture capitalists
- Bank loans
You will need to calculate your cash flow and costs in order to ensure you get the correct amount. This includes the interest rates for your loans. You can then use FreshBooks or QuickBooks to track your expenses and to help you stick with a budget.
4. Build Your Founding Team
Startups with two founders are 19% more likely to scale before their competitors than those with one founder. Research has shown that startups without cofounders take 3.6 times longer for significant growth to occur, enough to surpass the startup stage.
These statistics do not mean that all startups need co-founders to succeed in their startup journey. Co-founders are essential to fill in the gaps and ensure that all company needs are met.
- Skills gaps
- Leadership experience
- Industry Knowledge gaps
- Startup experience
- Fundraising experience
- Personality gaps
A founders’ agreement is required if you decide to hire a co-founder. This agreement outlines your expectations for the future and now. This document includes roles and responsibilities, vesting and anticipated roles (i.e. CEO), expected capital contribution and equity or compensation as well as time commitment. If you plan to use venture capital, for example, it is likely that founders will agree to a full-time commitment.
5. Needed Advisors
Startup advisors are especially useful in the early stages of startup ownership when you don’t feel confident about a particular aspect of business ownership, such as legal and compliance requirements or marketing. Startup advisors can help you make key introductions that will help your startup grow, as well as develop ideas and new concepts for the company.
6. Hire a Lawyer if Needed
Next, you need to learn how to find the right lawyer for your startup. Understanding the nuances of startup law is key to being a great lawyer. This includes understanding how venture capital firms work and the applicable taxes.
A lawyer is an essential part of any company’s relationship. They can help you with the legal requirements involved in forming and running a business. Your lawyer will not only ensure your startup is legalized, but they can also help you to comply with any share allocations or vesting schedules that you may have.
Startup entrepreneurs can use networking to help grow their businesses. Entrepreneurs have many options for networking, including local entrepreneur groups, startup incubators, and networking events. You need to network with many people in order to develop the best networking strategy.
- Fellow entrepreneurs or founders
- Mentors and advisors
- Potential customers
- Industry Leaders
- Members of your local start-up community
- Training programs
- Hackerspaces, makerspaces
- Connects to Investors
- Online communities
8. Follow All Legal Steps
Opening your dream startup can be fun, from designing your product to set up your office, and everything in between. To ensure your success in the market, you need to follow the legal steps.
- Applying to a Business License
- Registering your business name
- Getting a GST ID number
- Application for a trademark
- Creating a separate bank account
- Get familiar with the industry regulations
- Building contracts with clients and other people you intend to work with
9. Create a Location (Physical or Online)
You can decide if buying or leasing property is the right option for you, whether you are looking to set up a manufacturing plant, open an office, or start a business. You can often get tax deductions for managing commercial spaces. This is an advantage to owning your place. It can also be rented out for additional income.
Startups often lease their first premises to be able to invest in other areas of the business. It can also be cheaper to lease a space in a prime location for your startup. Remember that rent prices can arise unexpectedly and can cause you to have to pay more or even move. While you rent, you won’t have any equity.
It’s essential to have an online presence in today’s digital age. You’ll struggle to be successful without it. Because customers are shopping online more often and using Google to search for information about your products, this is why websites are so important. Websites offer many advantages, including:
- Stores that are open on weekends and holidays increase sales.
- Helping customers reach you around the globe.
- Customers can leave reviews about your products to help build your brand’s reputation.
A blog can help you increase your online presence. You can establish yourself as an expert in your area by starting a blog. Search engine optimization (SEO), can be used to improve your brand’s visibility in Google searches. It’s a smart idea to post on social media platforms where your audience is most active.
10. Create a Marketing Plan
Marketing is a time-consuming task that every startup must do. Marketing is an essential expense because it can help you succeed.
- Create a brand identity
- Stand out from the competition
- Build loyalty and customer relationships
- Improve visibility to attract new customers
- Enhance your company’s image
You should consider the following start marketing actions:
- Promoting coupons and deals by using social media
- Referrals earn you more business
- Free samples and demos available in your store
- Sponsoring events to get your name out in your local communities
11. Customer Base
To ensure your startup’s long-term success, it is important to establish a loyal customer base. Loyal customers are a great asset to your startup business.
- Increase your sales because customers are willing to spend more at your company
- Showing new customers that you are trustworthy
- Referring to customers is a time-saving and labor-saving strategy.
There are many ways to attract and keep customers.
- Providing great products and services
- Launching loyalty programs to keep them coming back in
- Affiliate marketing via social media involves paying influencers for product promotion
- Focusing on great customer service
- Market research helps you understand your customers’ needs better
- Directly asking for feedback
Meanwhile, the International Council of Shopping Centers (ICSC) found that 92% of shoppers said they were loyal to specific retailers because they offer fair prices and match the value of the product while 79% stated that it was due to product quality.
12. Plan to Change
In the first few years of their operation, startups change dramatically. The key to success is adapting your business model to the market and industry.
Here are some strategies to ensure you’re ready to adapt:
- Hiring forward-thinking to ensure your team is adaptable
- You are responsible for listening to feedback from customers, suppliers, and other people that work with
- Keep up to date with the latest trends in your industry
Businesses that adapt to consumer demands are more likely to be successful in the long term.
It’s obvious that starting a company from scratch is no walk in the park. There is bound to be a large margin for error with something as complex as business registration and as unpredictable as team chemistry. This is a guide on how to start a startup in 2022.
However, if you follow these steps you’re set with a battle-tested framework that successful startups like Paytm, Uber, and Zomato have all used to build, validate, and market.
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