It seems like everybody has some great ideas lately and think they can create a startup. There is a huge difference between a good idea and a startup that can actually become a successful business, however.
These are questions that have to be analysed as there is no one size fits all approach to creating a startup. Making the leap from idea to full-fledged business requires a lot of moving parts.
In this article, we will cover some of the basics on what needs to be in place for you to go from idea to business by bootstrapping a startup.
Make A Business Plan
There are many great reasons to have a good business plan drawn up. It is a great way to hold yourself accountable and identify a road map towards success.
There are a few bigger reasons that make a solid business plan indispensable. Obtaining a loan, courting investors and growing the business.
Those three factors are the most important thing to have secured when bootstrapping a business. Without a business plan, then it will be a hard row to hoe to have any foundation for the success of your company.
Make it the first item on your list so you can get started on the right foot.
You’ll need to have a bank loan and people looking to back you with investments in your company.
How much you need is highly dependant on too many things that can’t be answered here. But, it needs to be enough capital to run your business for some time.
To make sure you will be using the money correctly, you should hire an accountant before you even begin receiving the funding.
Try to find one local to you. For instance, if you are in the UK and near Taunton, then look for an accountant in Somerset.
Then, set out to find some cash to get started. You will definitely need to bring your business plan to a bank and get a loan. You shouldn’t try to get 100% of you starting capital from a bank loan, however. Spread out the risk by also courting some investors.
Crowdfunding could also work as a great way to bring in some money to start. If your business is based off of a unique product then Kickstarter is a good place to start a crowdfunding campaign. In the same vein as above, make sure you have the right accountant and one that specializes in dealing with crowdfunded businesses.
Find The Right Team Members
A lean, bootstrapped startup means a small team. And a small team means having every person be the right fit to make sure that it can work.
Each piece of the puzzle is extremely important to have right so that things go as smoothly as possible.
Churn is definitely a factor, even when you set out with the right people. Not everybody who starts out with you will still be by your side in a couple of years’ time.
Yet, if you get the right crew, then the transition will go much more smoothly and keep the engine going forward.
Become A Jack Of All Trades
You will be the captain of the ship with a skeleton crew for the first few years. Which means that you will be called upon to handle many different roles.
Unfortunately, the old adage about being a Jack of all trades but master of none will definitely apply to you. You can’t be an expert in everything.
Get proficient in enough fields that your business is in to be able to make competent decisions in several areas.
What I mean is that learn enough about marketing that you can help guide the marketing team in the direction that makes the most sense for your company.
You don’t need to also be a marketing director, but you’ll be able to hire the right one when you know what you need.
Solve A Problem
Whatever your company does, if you want to be successful, it should be solving a problem that people have.
Identify the pain points people in your industry have, then figure out a way to solve that problem, and then make sure everybody knows you have the solution. This is the key to success. It really is that simple.
Where it gets tricky is in the details to get you to a place where you can efficiently do this and make a profit.