These days the term startup has become quite the buzzword. People associate the term with the unicorn startups of Silicon Valley. They think that if they aren’t working in the tech space and they aren’t creating a solution that one of the tech giants would be interested in buying, they aren’t going on the right path. It’s true that you can be anywhere in the world and be creating something related to tech, but it’s also true that you can create something extremely valuable that caters to your own local needs.
For instance, there are some fantastic companies that have worked on environmental problems, energy problems, local business problems, and many other things that were specific to their own region, and had great success. The main mistake many people make is that they assume that no place other than their own demographic is facing the same issues. In reality, most regions across the world share much of the same issues. It might represent itself in another way, or it might be at a different magnitude, but if you have an effective solution, it can be applied to many localities. If you are interested in launching a startup, these are some important things to keep in mind.
Idea Vs. Solution
When Apple, Microsoft, Google, Amazon, and other tech giants first started out, they were doing something very different from what they are known for today. In the technology space, this is a common trend. Things are constantly changing, consumer needs are evolving and the available technology is always moving in a new direction. In other industries, for instance, food and beverage, the best-known companies have been selling the same product for decades, for instance, Coke. When coming up with your business plan, you need to clarify whether you are coming up with a completely new idea, for instance, the smartphone, or you are coming up with a solution to an existing problem.
These are two ways of creating a unique selling point for your business, and this decision will have a huge impact on the way that your business is able to grow in the future. However, both of these approaches will require upgrades and changes in the future. In the same way that tech companies have expanded into providing other services beyond their core offering and Coke has expanded into other beverages as well.
Bootstrap Vs. Funded
Startups can either be bootstrapped organizations or they can be funded. Bootstrapped companies are those that rely on their own funds and their own revenue to keep things going, whereas funded organizations bring in angel investors and raise funding for expansion from that source. Naturally, bootstrapped organizations have a lot more freedom when it comes to making company decisions. On the other hand, funded organizations have to consider the interests of their investors before making decisions. One of the most important decisions you will make, according to the team at uniwide.biz, is where you get your business registered. This will influence everything from company taxation to employee benefits to the future scalability of the organization. When you are self-funded you can choose your own home base, but with investors onboard you might need to look into options that the investors recommend.
On the other hand, as a bootstrapped company, you might not even have access to register your company in certain locations, but with investors onboard you get access to those regions.
If you look at the biggest companies in the world, the majority are publicly traded companies. If you want to expand as far as possible, then you will eventually need to go public. However, before that time, there are many different forms that your business can take and this has a direct influence on the form of ownership that the company has. If you want to be in control of the business and have power over the things that the business does then you need to focus on a strategy that allows you to retain at least a majority share in the business. When the business is in its early stages, it might be a sole proprietorship or partnership or even a limited liability company.
In all these forms of business, it is quite easy to maintain control and ownership of the business. As the business grows, it gradually becomes a necessity to change the structure of the business so that you can enjoy the benefits of larger companies. The only trade-off is that it becomes harder to maintain ownership of the company. Just recently, we have seen how Elon Musk bought Twitter, a public company, and bought enough shares to gain a majority stake in the company.
Profitability is not the only requirement for a business to be successful, especially if the business is in the tech industry. There are countless examples of apps, websites, software, and many tech-related products or services that are free of cost for users but can be monetized through other forms. The most important thing is the user volume and how frequently it is used by the audience. The wider the appeal of the platform, the more money it can generate through third-party tools. Scalability also includes how easily the platforms can be upgraded to accommodate additional users. If a business has a great solution that a lot of people want to access, but it can’t be scaled that efficiently, it will hurt the profitability of the company.
When you are developing a company and just launching the startup it’s very difficult, if not impossible, to understand what you will need to do in the future. This is something that companies have to figure out as they grow because there are constantly new things that emerge and the business has to evolve to meet these changing situations. Upgradability is a huge part of any successful business, but you won’t have it figured out right from the get-go. The best solution is to start with a good understanding of the current situation and to keep yourself open to the possibility of change. In some cases this might just be a minor tweak to your current offering, in other cases, it might require the business to evolve in a completely new direction. The more flexible you are and the faster you are able to adapt to new circumstances, the higher your chances of not only surviving but thriving in the long run.