7 Step Framework To Successful Startup.

If you're thinking to start your own business/startup

This post is all you need to get started.

In this post, we will provide 7 Step framework on how to start a startup? What should be the idea and execution? How do you know people will pay for your services/product?

Before jumping on to building a startup, ask yourself, 'Why you want to build a startup?'

If you get the following answer, I recommend you don't start or rethink from a different perspective.

1. You want to make money.

If you think you have an idea, you'll start a startup on that idea, and you will make money as simple as that, but the truth is different.

Ideas are commodity. Execution of them is not.

--Michael Dell, chairman and CEO of Dell

You have an idea, and you start working on it. Most of the time, pictures do not match the bar you expected on the first attempt.

The idea has to big enough that people like it and they are willing to pay for it.

Now, if you manage to get few customers, the money goes back into the business to grow it, improve the services, marketing, etc.

So in this process, money is the last step. If you did not prepare for hard work, failures, and challenges you would face, you will probably not go very far.

Remember you'll have to work even when you don't get money.

So do not start if your key motivation is money.

Chase the vision, not the money; the money will end up following you.

--Tony Hsieh, CEO of Zappos

2. Bored of your job, you hate it, you don't want to work for someone else, etc.

In this kind of situation, do not start a startup. Step back and have a conversation with yourself. Ask yourself why you're bored of your job or why you hate it? Find a solution according to your problem like you may change your position etc.

3. You want to build a startup because everyone is starting his or her startup.

Our society's perception is that you are a loser if you are doing a job, but the reality is not. Do not get influenced by anyone.

It would be best if you started a startup because you want to do so. It should be your individual choice.

Your work is going to fill a large part of your life, and the only way to be truly satisfied is to do what you believe is great work. And the only way to do great work is to love what you do."

--Steve Jobs, co-founder, chairman and CEO of Apple

Now, if your answer to start a startup is not any of these three or related to it, then you should create a startup.

Also Read :- No more mistakes while finding your passion

How to create a startup

Step #1 Ideation

An idea is a solution to a problem faced by a majority of people.

The value of an idea lies in the using of it.

--Thomas Edison, co-founder of General Electric

Think about problems you face in your life and find how many people face the same problem. If many people face the same problem, then try to find the best solution that solves the problem and easy to monetize.

It should be executable for you, whether it is unique or not.

There are three significant points that you should consider while creating an idea.

1. Simple and practical:- Idea should not be complex. It should be easy to understand and executable.
2. Futuristic:- Idea should not be out of date like a radio; it should be in demand for at least five years like an electric car.
3. Tweakable:- The idea doesn't have to be unique, and you can take the existing idea and make them better. For example, resell business ideas change into online e-commerce business.

Step #2 Feasibility Analysis

Analyze the viability of a business will reduce your risk and help you take a calculated risk.

Follow the steps to do a feasibility analysis.

1. Economically Feasible:- How many people are willing to pay for your product/service. To find it take the survey or communicate at least 100 people and calculate out of 100 people how many are ready to pay you and how much can they pay.
2. Financially Feasible:- Calculate CAPEX(capital expenditure) means how much money, resources you need to start, and OPEX (operating expenditure) tells how much money, resources you need to operate/run your business.
3. Technically Feasible:- Check the availability of technology your startup needs at present.

Step #3 MVP(Minimum viable product)

It means your first version of your first product and updates in the future according to feedback and analysis.

To decide your MVP, you need to focus on three-point

1. Market segmentation:- decide your targeted audience for your product.
2. Market analysis:- Analyze your market and industry. What is the future of the industry? What is demand in the market etc.?
3. Competitor analysis:- Analyze your competitor funding, market value, brand value, profit margin, etc.

Step #4 Pilot run

It means to test your product/service at a small leave like acquire the first 1000 customers.

After receiving few customers, you'll get an idea about

• Gap between reality and illusion
• What is next to bring the best?
• How to scale and money needed to scale?
• How you should improve your product?

Step #5 Team building

It is the most crucial step to start any startup. "Your first 12 people will decide where will the startup go".

while hiring, consider the following points to build a better team

Step #6 Profitable and Scalable business model

it is a game-changing step in your startup.

To make a Scalable business model, you should focus on the following points-

1. Growth plan:- Decide how you can grow your startup? How will you acquire more customers? What will your cost of Customer Acquisition (COCA)? What will the cost of expansion? And also, do the Calculations for cash burn.
2. Profitability Plan:- Plan how you can be profitable For the next 2-5 years.

Consider the following point while creating a profitability plan - dependency, Revenue model (Recurring/one-time), Upsell, and cross-sell.

Step #7 Funding and Incubators

Now at this point, you want to scale your business, which in turn requires a lot of money. So you need to present your idea in a compelling way to get funding.

Create a solid presentation including the following information.

1. Pitch deck:- It includes information of product/concept, Vision/mission, TAM(Total addressable market size)/SAM(Service addressable market size), COCA, RPU(Revenue per user), Growth projection, Present customer base.
2. Finical plane:- It includes information of Current financial plan, Revenue model, Expense sheet, Requirements, Budget Allocation.

Apart of the presentation, communication skill is also an essential factor to get funding.

Lastly Remember,

Whether you think you can, or think you can't--you're right.

--Henry Ford, founder of Ford Motor Company

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