Startup by the rules
15 tips for a startup creator
Startup is a hard and difficult activity, but at the same time it is the biggest drive in life after sex. As an ambitious entrepreneur, I have accumulated my own history of failures and successes. In recent years, I have formulated 15 rules that allow me to go through this difficult path in an easier way (the order of the tips does not matter).
1. Check yourself and the investor for compatibilityMoney is an important thing, but be careful with it and choose the right source.
Since most of the business angels and funds will take the company's shares from you, we can say that during the entire period of the startup's existence, you will be "married" to them. Therefore, it is better to love your angel or foundation. Check in advance if you are suitable for each other. If you have any doubts about this - refuse the deal.
2. Create a prototype with your own moneyIn any case, do not start attracting investments in a startup (even in the "angelic" period) without building a prototype.
Raise money for the team from your own savings or ask your family and friends to invest in your project. It is much easier to sell what can be shown. In addition, this way you will prove that you can realize your startup idea. Tip – follow the principles of Eric Ries and his Lean Startups.
3. The prototype should be as simple and cheap as possibleMinimum means minimum.
Don't try to build an industrial solution on a penny budget. The prototype should demonstrate any one or at most several functions. It should be simple – both for understanding and for application. Invest in creating the interface and usability.
4. Start testing the prototype immediatelyAs soon as the prototype is ready, ask friends, colleagues, anyone from your environment to start using it. Listen to all their comments and improve the product.
In general, if you ever expect to receive investments from people like Dave McClure, you will have to prove to users that, firstly, they need your product; secondly, they love it; thirdly, they are ready to tell friends how cool you are. Don't worry if there are errors in the product. If users care, they will tell you about them. As a startup, you will be forgiven a lot.
5. Never act aloneMost individual startups fail (I know from my own experience).
You need to have a strong team of co-founders. Don't start a project if you don't have a design and interface specialist, a marketer, techies and developers. Don't think of people in a startup as employees. They are co–founders and partners in your common cause, and you should treat them that way.
6. Top managers from large companies are not necessarily good startupsIt cannot be assumed that top managers of large companies are great entrepreneurs or mentors by default.
Big business and a startup are completely different things. Also, you should not be sure that the adviser from Mail.ru or Yandex will help you easily reach investors or partners.
7. Perform in public as much as possibleYour responsibility as the founder of the project is to make sure that people are delighted with your product.
You need to be passionate, active and incendiary. The more you speak in public, the better and more natural your presentation will look, and it will be easier for you to convince everyone that you are cool. Always check the result, look at the reaction, listen, get feedback, learn from mistakes, improve the product. You have to inspire people to work with you or for you, to use the product and to invest in the project.
8. Look for investments, distribute the rest of the tasks among employeesDivide your entire workload while you are busy with the process of attracting investments, so as not to start a "turnover".
Ideally, you should have a product manager in your team. Surround yourself with talented people. As a CEO, you need to focus on finding investments – it will take 90% of the time.
9. Don't waste time attending startup eventsFor the most part, they are designed to attract the public rather than raise money.
But your time is as valuable as money. And, as in the case of cash, investments should pay off in full.
10. Work for a big market and solve big problemsCheck if your product has a large enough market.
To become truly interesting for an investor, you must either seriously push the existing players of the multibillion-dollar market, or solve a real problem. Small problems attract only small investors with modest investments. Big problems are of interest to wealthy investors of the highest level.
11. Be closer to buyers, but even closer to investorsIf you are raising money for a project from a foundation in Boston, you need to move to Boston.
A foundation or an angel is not just a source of funding. Most investors have serious connections and good relationships with other investors, funds, partners, mentors, and so on. They have already been on the market, achieved certain results, and more than once. You have to find a way to make money on this.
12. Don't expect too much from your business angel's connections and acquaintancesDo not get carried away excessively by the previous advice.
When you choose which business angel to turn to for investment, do not overestimate his mentoring capabilities and connections in the market. Even if your angel knows, for example, Igor Matsanyuk (Farminers, GameInsight) or Dave McClure (500 Startups). In most cases, he will help the startup at a minimum.
13. Become a member of the business incubatorIf you are in Europe, you should definitely enter the Seedcamp incubator.
Or in Startupsauna (they will help you for free, without requiring you to unsubscribe shares or a share in the company to them). In addition, it is worth paying attention to Farminers, Techstars, Y-Combinator, Launchpad, etc.
14. Make the product quickly or close the shop.Ideas are worthless until they are implemented.
15. Do not hesitate to say that the idea failedSet clear goals for yourself from the very beginning.
Do several approaches, listen to user feedback, release a new version, test it in public and continue until you achieve the necessary indicators of the user base, the level of engagement, and so on. But if after 6 months you do not achieve any results, stop. Failure is also the norm for a startup. Don't be afraid and don't be shy about it. To achieve great results, be prepared to fail every time you take a risk. And don't worry.
Portal "Eternal youth" http://vechnayamolodost.ru24.08.2012