Are creativity and innovation enough to start a startup and become a successful entrepreneur? No, planning and organization are needed to achieve significant results within the technology market, taking advantage of innovative and original business strategies, capable of revolutionizing its reference market. What about the risk management?
How to Create a Successful Startup
First of all, do we all know what a startup really is?
Definition of Startup and Main Features
A startup is a temporary organization that aims to seek and validate a scalable and repeatable business model (Steve Blank). Here are the main characteristics of a startup:
Any organization that is set up as a startup is experiencing a transitory phase in the expectation of transforming the startup into a large company; The startup experiments with several business models, moves by trial and error in order to find the right way to be able to innovate; The startup’s business model refers to a very large market with the possibility of growth.
Since you have to be honest and since 90% startups fail, before starting your business you should ask yourself a few questions:
How innovative am I? Do I have all the basic information I need? How will I be able to finance myself? Do I have the right co-founder and team?
The concept of startup has a lot to do with that of disruption, or creative destruction so called by Joseph Schumpeter in the context of innovation linked to the company and the economic system. The introduction into the market of a new product, or of innovative processes and techniques, must be capable of changing the market and generating value for the company and its customers. In fact, however creative it may be, an idea is truly innovative if it is put into practice. All businesses must be innovative and must aim to change the world.
The legal system establishes that in order to be innovative, the startup must have “the development, production and marketing of innovative products or services with high technological value as its exclusive or prevalent corporate purpose”. Furthermore, the startup must meet at least one of these conditions:
- Research and development expenses must be equal to or greater than 15% of the greater value between cost and total value of production;
- Employees or collaborators employed must be qualified and have educational qualifications;
- It is necessary to have an industrial patent functional to the corporate purpose;
- The company must not have been established for more than sixty months;
- It must not exceed 5 million euros during the second year; He must not distribute profits;
- It must not derive from a merger, corporate split or sale of other companies.
The sources from which a startup can apply for funding are:
- Central Guarantee Fund;
- Bootstrapping or self-financing;
- Family and friends;
- Business Angels, the entrepreneurial or managerial figures who contribute with the skills they bring;
- Venture Capitalists, those who help the growth of the startup and guarantee returns;
- Premiums, grants, public funding always integrate other sources of funding;
- Incubators and acceleration programs are not a real source of funding, but they support the development of the idea and business model.
The Business Plan of Your Startup
The business plan, that document that contains and explains the objectives of the company and its model, is indispensable for any company and startup. There are a few startup tips, you must know. A good business, to be functional, must contain the following information:
- Personal data, address, telephone number, registered office of the company, a brief presentation of the founder and his previous work experiences;
- Description of the investment project and the products / services offered;
- Marketing plan with clear indications on the strategy to be used;
- Strengths and weaknesses of the product / service offered and points of difference compared to competitors;
- Sales objectives and commercial organization;
- Three-year or five-year economic-financial feasibility plan; Technical feasibility of the project;
- Investors involved and plan for new investments;
- Environmental impact of the project.
Alternatively, there is the Business Model Canvas, a document drawn up in graphic form that offers an overview of the various parts that make up the startup and helps to understand the functioning of the company.
The Business Model Canvas generally consists of 9 blocks:
- Value of the service proposed for the target;
- Acquisition and loyalty;
- Activities to generate revenues;
- Costs of activities and resources;
- Channels through which to reach customers;
- Customer segments.
When the business plan is ready, you can contact a notary for the deed of incorporation to be filed with the Register of Companies or use the platform, following the procedure for obtaining the Statute and the Deed of Incorporation to be digitally signed and sent.
Instead, to control company income and expenses, there are simple tools that allow you to manage billing. These are software for creating cloud invoices that save time and money and are available to everyone from a computer or smartphone thanks to an app. These types of smart startup tools make life easier for young entrepreneurs and help optimize time.