Wise Startup Blog

Getting started on a startup is one of the hardest things to do. People have great ideas all the time, but without an actionable plan of action, it’s hard to get from just an idea to a concrete startup company. These first steps should be invaluable to you as you take your startup idea from concept to concrete.

Finding the right motivation to start a startup can be one of the hardest things you can do, so it’s important to research as much as you can and take guides like this with a grain of salt and learn what’s best for you and what works and what doesn’t. After reading this article, if you only take away one positive thought from this discussion, I consider that a success and I’d appreciate you coming back to read more of Wise Startup Blog.

Is Your Startup Viable?

The first question you have to ask yourself and maybe a couple close friends is: is this a good idea? Will my startup be able to succeed? 90% of startup businesses fail, so you better be sure your idea is a great idea.

Once you’ve been around the startup space for awhile you kind of get a knack for good ideas and bad ideas, and your ability to gauge the market size and possibilities for a new project become second-nature. For those of you new to the startup game, it’s easy to get misled with delusions of grandeur, so it’s best to put your startup idea to a reality test:

Will your new company have any competitors? How will your startup compete or trump them?

How big is the market opportunity? How big do you plan to grow the company?

These are the types of questions you’re going to be seeing a lot of plus a heck of a lot more as you try to raise money. Over time, you’ll learn the answers to these questions like the back of your hand, but it takes time and practice. Go over the answers to these questions with close friends & family and look for their honest opinion.

If you can’t convince your friends & family that you have a good idea on your ideas, it might be better to start thinking of some new ideas or work on your sales skills. Remember, however, if your friends and family aren’t your target market, you need to learn to ignore them and focus on the goal. Through your process of starting your business, you’re going to have a lot of naysayers, so it’s important to stay focused and passionate about your idea, because at the end of the day you’re going to be your biggest cheerleader, so you need to hang on for the ride.

Hire a Partner for Your Startup

Trying to fend off questions about raising money, and trying to grow your business all by yourself can be a lonely, discouraging and unrewarding process. To help you throughout your cause, having a startup partner can take a big weight off your shoulders. Sure, they will end up with possibly 50% of your company, but the amount of value they bring will more than make up for the equity share you have to give up.

During long nights when you’re first trying to craft the idea, the two of you are going to be the only people you can rely on. You will constantly be motivating each other to work harder, think harder, and together you both will act smarter. Then, when it comes to raising money, you won’t be walking into the room alone, you’ll have a partner that you can play off and help team up against the investors. Suddenly, you’ll be able to turn the tables and together convince possibly investors that the two of you have found something ingenious and they’re the ones missing out.

As I wrote about before, if you’re starting a web company, it’s best to bring on a developer as your CTO and partner. This way, you will have both roles covered. You, as the entrepreneur/founder will work on raising money, getting legal issues taken care of, and your partner will build the product. It will definitely be a game of give-and-take, but over time you’ll learn to trust each other and rely on each other in times of need.

If your company is being built by two non-developers, your biggest issue upfront will be trying to find the best rate to pay someone to build your company. It’s important to remember, that if you’re just trying to build a small business, and not a true “startup company” then your needs may differ and you won’t need the full-time services of a developer. Even so, I personally like to be able to have developers on board with me so if there’s an issue with the website, we’re not making 11th hour calls to get it fixed, and plus the wages can be much lower.

Set a Realistic Timetable & Stick to It

During the early days of your startup, you’re going to have a lot of confusion, questions, and just general head-scratching moments, and it’s easy to lose track of what’s important. That’s why it’s so crucial early on to have concrete goals that are attainable and also met.

Say you’re starting your company today, you should plan to have all paperwork and incorporation done in 1 month. In 2 months, you should have a mockup website put together and complete the first draft of the business plan. By month 3, you should start contacting potential friends & family investors and attempt your first pitch.

These are very attainable goals, all set with realistic timetables. Forcing yourself to a deadline is very beneficial. First, it gives you something to work towards, and secondly it’s important for budgeting your time and money. If you only have 6 months worth of operating capital, you need to be sure you’re going to be able to raise enough money to get by.

So for those of you out there with a great idea, why don’t you act on it? Take these 3 simple steps and get going. Let us know in 3 months if you’ve raised any money or if you want to share your business plan with us.