2021 has been one of the best years for the startup ecosystem, achieving an investment of more than 3,000 million euros according to the report 'Impact of scaleups in the economy of Spain', presented by Scaleup Spain Network.
Launching, promoting or developing a new business project is a great challenge.
The mission of every startup focuses on the search for a feasible, viable and replicable business model for the exploitation of the main idea. In the first stage we go from the conceptualization and definition of an idea until we have proof in the market that the idea is feasible, and we have validated the viability of the project.
If you want to start your own business, here are some of the factors to consider when developing a solid and sustainable project.
IDENTIFY A PROBLEM, OFFER A SOLUTION
Your potential customers cannot benefit from your product if they are not aware that they need it, so you must make them have a global vision through open questions that show what their needs are and how you can help them satisfy them. A product that you "need to have" creates a sense of urgency. A product that "would be nice to have" goes unnoticed.
Offering a solution to a problem is an aspect that should always be in the mindset of an entrepreneur. Companies are born with the goal of responding to needs. Large companies, such as Apple, focus their businesses on identifying consumer problems with the intention of subsequently offering solutions to them.
This is the origin of what we know as a business idea. Faced with an existing problem, organizations offer products or services to solve them. The key to this point is not only to think about the economic environment, but also about the psychological factors that lead to the purchase.
Knowledge and motivation are two indispensable aspects when it comes to entrepreneurship. We can have great ideas, but it is especially important to continue learning every day to get the best out of our ideas.
Training is essential to know what you are going to face, how the market works, and the difficult path and stages involved in launching a new project.
The only way to know if a business makes sense is to put it into action through small tests to check its efficiency and effectiveness. These tests can range from creating a simple web page to promoting and selling a prototype of the product to see the reactions of the potential buyer.
Once the riskiest hypotheses have been validated through the tests mentioned above, all the information must be formalized and various presentations need to be made to investors or clients with the intention of showing and promoting the project, the so-called pitch decks.
Every day we are exposed to a huge number of stimuli. Therefore, a company must attract attention and stand out from the rest if they want to be successful. Shaping the corporate image and branding should be done regardless of which differentiation strategy you want to follow, be it low prices, value proposition, exclusivity, etc.
IMPLEMENTATION OF THE LEGAL STRUCTURE
After your theories have been confirmed, or even if the first sales have already been generated, it is time to formalize a legal structure. Having a legal form will help entrepreneurs separate their legal liability from the liability of the company.
SEARCH FOR FINANCING
The time has come to grow and scale up your operations. There are business models that require a large initial investment and need third party capital, such as hardware or hard-tech companies. However, at a very early stage, we recommend avoiding this step, as it is better to be able to start self-financing with sales and the 3 F’s (Family, Friends and Fools) to prove that the business is viable.
There is no magic formula for success when founding a startup, but there are prepared teams capable of helping in the development of all stages of a new venture.
At IVC we have more than 50 years of experience supporting the Spanish entrepreneurial ecosystem through our knowledge, with our corporate, business development and venture capital services in environments with high levels of uncertainty.
Our agile entrepreneurship methodologies allow the validation of the opportunity in the market, both in the case of startups and in the launching of new products, or developing new markets for companies that are already consolidated.
If you want to unleash the full potential of your business idea with an expert and reliable partner, contact us.