What are the steps for establishing a startup company?
Establishing a startup company is the dream of every entrepreneur who seeks to embody his idea on the ground, be independent with his project, or get rid of the routine of the job that inhibits his creativity and skills. It links him to times and daily tasks that he does not find pleasure in completing. However, setting up a startup is not as easy as most people think, as many startups fail within a few years of being founded.
Therefore, in the following article, we will highlight the steps for establishing a startup company and some methods that help guide and guide any entrepreneur on what he must do to reach his goal and successfully establish his dream startup.
Finding a company idea
“A thousand-mile journey begins with a single step.” The first step in the entrepreneur’s journey toward establishing a startup begins with finding a good idea. The better way to accomplish this is by identifying a problem. That a community or group faces and seeking a solution. This method may seem difficult to some, or it is the only way.
In recent years, most startup ideas are nothing but cloned or developed ideas that have existed for years and have been developed over time until they become as we know them today. So, you do not need a genius idea to create a successful financial projection for startup. It is enough to choose a specific field, find a loophole in the market, and then provide a service much better than what people currently get from the companies in the market.
Benjamin Franklin said, “If you fail to plan, you plan to fail.” With so much competition and many well-executed ideas, only startups with thoughtful planning and a sharp focus on the right market will succeed. Therefore, one of the important planning stages for creating a startup is to conduct an extensive market study.
The market study is the systematic collection, interpretation, and analysis of data and information about the target market, its needs and competitors, and actual or potential consumers, their behaviors, and their geographic location, all using analytical methods and approaches. This process provides decision-makers with insights into market potential, which can be used in business planning, product development, and marketing strategy.
Intellectual property rights protection
Intellectual property rights mean protecting your business, your trademark, or any property resulting from your creativity from people who may steal your project ideas and use your intellectual property without your permission. Therefore, it is imperative for any entrepreneur with a project idea to turn it into a startup company to protect the company’s intellectual property early in its life.
Although some may ignore the value of intellectual property protection, they believe that protection includes only patents. At the same time, others prefer to postpone the process to an advanced stage until sufficient financial liquidity is available. However, this delay may be harmful to the company if other people use the company’s intellectual property. There are three types of intellectual property:
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A trademark is a sign that distinguishes your products and services from those of your competitors. Registering a trademark allows you the exclusive right to use it on your goods and services and the ability to take legal action against anyone who does so without your permission.
Writing a business plan
Studying the market leads you to the next stage that is no less important than the previous one when launching your startup on the ground, which is writing a business plan.
Use the market study results you obtained to prepare the business plan and create a plan. That defines what you want to accomplish with your new business. Next, determine the goals, challenges, and methods that you must follow to overcome these challenges. Such as a detailed budget, business model, and marketing strategy.
There are two types of business plans that any entrepreneur can choose from traditional and simple business plans. The most popular, traditional business plans allow you to delve into the details of each section of the business plan. Unfortunately, it can consist of dozens of pages and takes a considerable time to complete.
Less common are simple business plans, which rely on preparing a summary of only your plan’s most important key elements.
Raising the necessary capital to establish your startup
Entrepreneurs’ biggest obstacle in their startup journey is finding enough capital. We find that funding is one of the biggest factors for the success or failure of most startup companies globally because the lack or lack of sufficient money to run the company, especially in its early years, means its failure in the beginning.
An entrepreneur needs to pay attention to every detail, big or small, of his startup. With all the tasks and roles that the founder of the company has to perform, at some point, he will need to delegate people to perform certain tasks. Therefore, before reaching the recruitment stage, the entrepreneur at the beginning of the company’s life must learn to do all the tasks alone or with his founding partner.
Doing various tasks at the beginning will help the entrepreneur to have the knowledge and the ability to give his ideas and discuss the future work team in any aspect of the company.
One of the things you need to learn early on is hiring and managing a team effectively, given the importance of the work team in the startup. Still, the entrepreneur must be prudent in hiring full-time employees, and he only does so when he needs this employee permanently.
Also, instead of relying on hiring full-time employees at the start of your startup. But, again, this deaf course is on the nature of your work and the amount of time you need to perform and accomplish a particular task. Whether it is tasks related to marketing, sales, programming, human resources, or others.
Search for the best potential employees, interview as many applicants as possible. Study the potential and skills of each employee and carefully decide which one is suitable for the job because the formation of an experienced and highly qualified work team is important for every founder, especially the first team or the so-called “founding team,” most of whose members will be future managers in the departments of the emerging company.
Build a prototype for your startup
Building a prototype for your product or service means the lowest and simplest testable model of the product or service that includes the main functions.
Developing the prototype requires less money and time than the final product. Which avoids entrepreneurs wasting money and resources before ensuring the idea is successful. The prototype is built for several purposes. Including knowing the extent to which customers are willing to pay for the product or service. Studying the main features and functions of your product or service that are most in-demand than others. In addition to reducing the expenses and time required before launching the final product.
Never underestimate the importance of building a distinctive prototype for your product because it is one of the basic stages that the product goes through during its development until it reaches its final form. In addition to that, it gives a preliminary perception of the type and shape of the product or service that you seek to provide. So, try to present your product in the best possible way to receive positive reviews from your target audience.
Choose a company headquarters
It is special for any entrepreneur to reach this stage. Given what it means to anyone pursuing a dream of starting a startup. However, it is necessary to think a lot before renting a company premises. Because it is one of the biggest expenses any startup company can incur besides wages. So ask yourself first, can you do the company’s business online, or do you need a physical headquarters!
Therefore, if it is necessary to have a headquarters for your startup company. First make sure that there is enough money available for a certain period. From 6 months to a whole year, to be used in the recruitment process, marketing, and other expenses. Then use negotiation tactics to get the best lease possible for your company. There are many solutions for the entrepreneur that can be suitable and help choose the company’s headquarters. They differ according to the capabilities and capabilities of each entrepreneur:
Residential space rental
The beginnings of the largest and most successful international companies go back to rooms. And residential spaces such as basements, apartments, or garages. One of these solutions may be to help create a startup, but it is not a long-term solution.
The biggest benefit that any entrepreneur can benefit from by relying on this solution. As a start would be the low cost of this type of workplace. Especially if the founder of the company used a spare room in the apartment. He lives to work in the first months of the company before its legal registration. This solution is not new because most large companies started from the rooms of their founders. Such as Apple, and Facebook.
Rent a co-working space
The co-working space is a huge building that houses many individual and group offices with meeting rooms. It is also characterized by low cost compared to renting traditional offices. In addition, it includes many services and facilities such as providing group meetings and conferences.
Company registration is a legal process used to form a legal entity or corporation. This stage is very important in the formalization of the startup company. And the form of stock split agreed upon between the founders. Therefore, new entrepreneurs must pay close attention to this stage and work to register the company. As soon as possible, given the possibility of disagreements between the founders after building the company. For years and making profits without registering the company.
One of the problems among entrepreneurs worldwide was when someone from the founders came after months. Or years of work when a certain disagreement occurred and demanded a large percentage of the company. Only because he could do so since the company is not legally registered. Here the founders get into big trouble that may reach the courts. As happened with many entrepreneurs worldwide.
These are the most important steps that any entrepreneur must follow to bring his idea to the stage of embodiment. On the ground and turn it into a profitable and successful startup.
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