If you ever want to form a startup of your choice, having ideas alone won’t cut it. It would be best to have more than that because starting a business is never easy as it sounds. It takes a lot of patience, research, planning and effort, which will serve as your strong foundation in whatever industry you want to compete in.
Researching Everything – You don’t want to end up like the many startups that had to close down in just a few months because problems kept piling up. The number one reason startups fail is that there’s no need for whatever products and services they offer. There’s a lack of market research on that part, highlighting how important this small information is.
Without research, you’re just presenting a product or service that you want with no proof of any demand.. On the other hand, by having a solid set of information about your market, community and resources, you’re ensuring that your business will have better chances of flourishing once it opens up for operations.
Hiring the Best Candidates & Partners – If you already have the right amount of market information and numbers, you’re probably thinking that forming a business plan is the next step. But wait, there is another important step in the way that you can’t afford to skip, otherwise your success is in jeopardy. Before you even try to plan things out, make sure that you have enough people to plan things with you.
These people will give you their insights about your research, and with more than one mind working on thinking and planning ahead. That will subsequently make things easier and – most importantly – paint a realistic picture for you. You can start by hiring a couple of friends in the industry as a start, but keep in mind that hiring friends can be risky, since you want people who are not afraid to disagree with you as well.
Additionally, it would be best if you also found market experts that can serve as your mentors. They already have the experience, and there’s probably one or two out there willing to give you a helping hand. Not only that, if they end up liking your prospective business, you might land yourself your first investor. There are plenty of those just lurking around the industry, and fresh startups are often the best investment, so there’s a stronger chance of them investing in you.
Ofir Bar, an angel investor with a few good years of experience in this field, told us: “What I usually look for as an investor are things that you can notice only when spending time with a young entrepreneur. For example, the flare in their eyes or their willingness to think outside the box. Many investors, especially more conservative ones, don’t pay attention to these things, but I think they are super important.”
Creating A Budget Plan – Whether you received funding from investors or you depend on savings, it’s important to know how to allocate funds for your business. Keeping a close record is one way, but creating a whole budget plan is better. This way, you’ll be able to set limits and not overspend on certain aspects. Money is crucial in every business, whether small or big.
If you don’t have enough funds, you can start by pitching from your friends and family. Also, once again, here’s where the angel investor’s role enters the picture once again.
We asked Ofir Bar, who is currently worth approximately $150 million, to help us define exactly what an angel investor is and what they do. This is what he had to say: “an angel investor is a person or a group of people, making joint ventures and investments together. The angel will offer you help not only financially but also through guidance and advice. These veteran investors offer their time and experience as mentors to your business and it would be foolish not to take it.”