A startup as defined is a young company, partnership or organization that is just beginning to develop, and is designed to rapidly develop scalable business model to solve existing problems. With so many ideas flying around as observed in startup meet-ups and with so many problems waiting and begging to be solved, This article takes a look at the 5 things holding back startup ideas and how to navigate around them successfully.
Table of Contents
1. Stop Talking About it, Start Creating it
The first major problem with start-up idea owners is the time it takes to actually start implementing the idea. Owners tend to spend too much time talking about the idea they have and fantasizing on how that one idea if implemented is going to change the world and how it is soooo unique.
One thing start-ups should know and be aware of is, someone, somewhere may be thinking of that same idea as you, the earlier your start putting things in motion and start implementing, the better you are towards creating value.
Get a business model for your idea and design the processes: Research and know your product, know your customers and key partners, detail your financing and source of revenue towards a successful business implementation.
2. Don’t Try to do it all Alone
Another problem is trying to do it all by yourself in the quest to protect your business idea. Two or more heads are indeed better than one. Look for partners, get a team, join heads with other enthusiast and smart people and see what other ideas they bring to the table. You will be awed at how faster your idea is nurtured to fruition.
3. Don’t Wait till it is Perfect
As the saying goes, nothing is really perfect. Reason why their is always room to make something better. From the Gadgets we use to the applications that powers them, we are always introduced to new and better upgrades of them.
Don’t worry too much about perfecting your idea, there is always room to improve on it. That is why we have new versions of applications or gadgets coming out almost daily. It’s advisable to focus on making users use your product at its simplest form.
4. Pitch it to Friends and Family
Don’t rely on your own judgement alone. As you implement, tell your friends and family about your idea and seek honest opinions from the first 2 people. Work on their recommendation and critique and move to the next two people. This will help you fine-tune it and make you see your product through another angle.
5. Seeking Investors for Startup Ideas
Seeking investors and funding is where you have to be very careful. If you are smart enough and have a rich family or friend who believe so much in you that, they are willing to fund your start-up all the way, lucky you. If not, you have to prepare yourself for some possibilities.
At first as the idea owner, the company-to-be is 100% yours. The moment you seek a co-founder/partner or a team, your grip on the company-to-be begins to loosen as you will have to offer fair equity for the work they bring to motivate them.
The fund you get from family and friends depending how much, may be eaten up by the cost of registering the company, day-to-day running and so on. You will soon find the need to seek more funding. Here is where you begin to seek for Angel Investors moving up to the Venture Capitals.
The more funding you get, the more you loosen your grip on the company. Its better to have 15, 20 or 25% of a Big company than having 100% of nothing.
As you progress from a start-up with just proof of concept to a real solution, one of these three thing will happen:
- Either you will run out of funding and no one will want to invest, so you die. Or
- Get enough funding to build something a bigger company wants to buy, and they acquire you. Or
- Do so well that, after many rounds of funding, you decide to go public and sell lots of stock.
Should you overcome all the points listed above, you have more chance of making your idea succeed.