Building your startup. Starting a Startup: What you need to know Best Startup Ideas

Before creating your own project, you should find out what are the differences between small businesses and startups. Startup, startup - what is it, how to start the development of a project, find investors, achieve success. At the current moment in time, there are a huge number of small businesses that classify themselves as start-ups. But not all of them can be attributed to this category of projects that have bright distinctive features that distinguish them from other companies.

What is a startup

The word is a transliteration of the English startup. Startup - what is it in the classical concept, how are they looking for investors, sources of financing, which will contribute to the rapid launch of the project. The main feature of startups that makes them a potentially profitable business is the use of interesting ideas and promising undertakings. In addition, it is more important to gather a good team to start here than in the field of ordinary business.

Who is a startup

At the initial stage, in order to create a successful business, a team of people is recruited who are considered startups. Only these people are responsible for the successful implementation of the plan, initial capital, attracting an audience at presentations. Often students who want to earn money and achieve success become startuppers, but who do not want to work in firms, large corporations, or become entrepreneurs. They create a business plan from scratch, attract supporters, private investors in order to develop a unique product, their own business that can bring big profits.

Startup and business - distinctive features

Businessmen realize themselves in ready-made industries, enterprises, and start-ups launch their business projects in conditions of uncertainty, high risk, and a minimal budget. Consider the key differences between a startup and a full-fledged business:

1. Scales. Entrepreneurs implement their ideas in already developed areas, they are limited by the clear boundaries of the industry. Startup has no such limitation. The very definition of a startup lies in the innovative ideas that constantly move it forward. Examples of successful projects: Google, Apple, Microsoft, Facebook network.
2. Rates of growth. The growth stage of a startup begins and lasts much longer than that of a conventional business. Without exception, all aspects of startup are aimed at the successful implementation of a product or service in the target community in the shortest possible time and in the most effective way.
3. Profit. At the stage of financing, determining the amount of investment, startups are looking for investors to promote their idea. The initial capital greatly depends on how advanced technologies the team can use during the development stage and after it. All this contributes to the speedy promotion, has a direct impact on profits.
4. Technology startup. The success of a startup is built not only on ideas, but also on innovative technologies. Many projects involve the latest developments.
5. Life cycle. A clear definition of the time frame for the existence of a startup is impossible due to the lack of boundaries for its development. It can fail at the very start or live for several decades, continuing to improve.

Startup projects - types and areas of activity

The division of startups into types, classes occurs not only in terms of knowledge intensity and the purpose of creation. Also, projects are subject to division according to less generalized features:

• Hobby. There are the most such projects on the startup exchange. They were created by people who tried to turn their lifelong passion into a profitable, interesting business.
• Creation for the purpose of enrichment. Starting a project just for the money can be a good motivation for the first time. Such companies are better thought out and organized than the first ones.
• Family project. This type of enterprise is widespread today, mainly occupies the niche of restaurants, hotel business, and the production of hand-made products.
• Global company. Startups can be called successful after reaching the global level. Projects in this category are unique, attracting clients all over the globe, and their life cycle will last for a very long time.

According to the degree of science intensity

The classification of projects by science intensity is unambiguous and has only two varieties:

1. standard company. Uses conventional technologies, does not require additional developments in the field of its activity. Examples can be companies in the hotel, restaurant business, hand-made products.
2. A company that uses innovative technologies. The second type is more complicated, it develops using the latest developments in the relevant industry. It may require significant additional funding, the search for large investors for its implementation, promotion, development.

According to the purpose of creation

The advantage of a startup is achieved by setting goals that are decisive in its start, development, promotion:

• Earnings. The basic, most common purpose of creating a project. Even if employees work “for the idea”, the project will not last long without profit.
• Idea. There are people who are ready to work for the development of a certain industry, information technology, economy, industry. Such companies have the least chance of success, but if the outcome is positive, they can bring huge profits.
• Set of professional team. A good, well-coordinated team of purposeful startups is capable of a lot, but it is very difficult to assemble it. Even if it fails, such a company can always start another project from scratch.

How to create a startup

To be sure that the project idea will become popular, you need to consider the very concept of a startup - what it is, how to start the development of the company correctly, what to focus on, in order to understand what they are based on:

1. Thinking through an idea. The key feature of the project should not have analogues in the country or region that will be involved in the promotion. You can come up with this idea yourself, buy it or order it on the startup exchange, borrow it from foreign analogues.
2. Team search. The people involved in the project do not need to know everything about the industry covered by the startup. This is welcome, but all employees can develop regardless of knowledge.
3. Drawing up a business plan. The plan is the most important part of any project, without which an accidental failure can be fatal to the whole idea. The development stage should be approached with all responsibility, which will contribute to product sales.
4. Search for investors or start-up capital. Even the most promising ideas cost a lot of money at the implementation stage. Finding finance is not easy, but it is possible. Investments can be provided by banks, friends, relatives, other people who are interested in the original idea.

startup idea

The popularity of startups is due to the innovativeness of the ideas on which they are based. The main idea should be unique, capture the attention of the client, be economically beneficial to those who invest money in the idea. To achieve these conditions, you need to study in detail the question: a startup - what it is, how they are classified, what ideas have already been developed, what innovations are based on. The following ideas are gaining popularity in the world at the moment:

1. Ecology. Waste disposal, optimization of treatment facilities, the development of new ways of landscaping - all this is only gaining popularity and has a good chance of becoming a platform for the development of a new project.
2. Internet projects. Ideas in the field of IT, platforms VKontakte, Facebook, the Internet in general, have great potential for founding your own company that promotes websites, helps in recording and storing the history of the Internet, the world, etc.

Drawing up a business plan

Startup - what is it, if not another form of small business, characterized by growth rates and large requirements for the amount of investment received? As in the case of an ordinary business, a startup needs a well-designed plan that will reflect all stages of development, the formation of a project. When developing a business plan, you need to consider:

• idea development;
• team search;
• analysis of the needs of the target audience, mistakes of predecessors;
• search for investments;
• analysis of possible risks;
• implementation of the idea;
• promotion, advertising, work with the audience.

Search for investors

All project participants, one way or another, want to earn. Potential investors invest in development in order to get a share. To attract people willing to provide financial support, you need to know where to look. In the startup area, the 3 F rule applies: family, friends, fools. What does it mean: family, friends, fools. These are 3 sources of start-up capital for startups. The second option is venture funds, banks that issue loans, or investors who earn money by helping start-up companies. Attracting investors is possible on special exchanges.

Project development

The progression of any such project proceeds according to the standard plan, which will be the same for a new technology to improve the environment or an innovative idea in the hospitality industry:

• birth stage;
• development stage;
• launch stage;
• growth stage;
• expansion stage;
• completion stage.

How to promote startup correctly

Promote a startup, startup - what it is, how to achieve maximum efficiency, attract a large audience, create a positive opinion about the business. To understand how to properly promote a company, consider the list of advertising platforms with maximum efficiency:

1. Social media. Create accounts in all social networks, tell people about your idea. This will give a small influx of interested customers.
2. Internet advertising platforms. They have high efficiency, the ability to customize targeted advertising, which will be shown only to those groups of people that you yourself specify in the request.
3. Site creation. Your own web page will increase the chances of successfully attracting customers, supporters. The information offered there is not limited by the rules of any resource, but only by the imagination and needs of the startup.
4. Placement of ads. An archaic way that will allow you to attach to the idea of ​​the company not only Internet users, but also random passers-by.

Successful startup examples

There are many examples of projects that have been able to develop, achieve success, and become financially profitable. Such an ending for them was the result of a well-chosen idea, competent team work, effective promotion, selection of investors interested in developing the idea. To understand what a startup is and how to properly approach its development, consider examples of successful ideas that were positively received by the audience and still exist.

In the field of IT technologies

Information technologies occupy a significant part in the life of society. A well-organized startup in this industry can achieve a lot:

1. Microsoft. The development of the project began with orders for programming in the basic language. Now it is the largest corporation in the field of high technology, software, which has developed thanks to extensive venture capital investment, support for the original ideas of Bill Gates.
2. Google. The history of the largest Internet search engine began with the desire of Larry Page and Sergey Brin to create a single integrated universal digital data storage library. Further research on this topic led students to create a popular search method, recruit a team, found a corporation.

Cooking and restaurant business

A kind of culinary startup - what it is, what it is characterized by, what features it has:

1. "Super bowler". The essence of the popular service is the ability to cook a dish at home, and then, posting its photos, recipe, description, sell the culinary masterpiece to the user who will be the first to book a treat.
2. Madwinebar. The idea of ​​creating a bar where people can taste delicious wine belongs to sommelier Vladimir Yuryev and chef Dmitry Evstigneev. The bar offers free tastings, special meals of the day.

Hand-made products

If a person knows how to work with his hands, he will not be left without work. This is true for startup Porch as well. A large aggregator engaged in the centralized collection and sorting of orders for repairing something, doing housework, creating things appeared in the city of Seattle, Australia, in 2013. The user can place an order or place a resume himself, indicating his skills and abilities.

Internet startups

A kind of network startup - what it is, what options for information projects exist:

1. "Writing in the Sand" The company has been successful thanks to Anton Velikanov. Inspired by the beauty of the coast of Costa Rica, the young man came up with a way for everyone to get a photo of a beautiful place with a custom caption right on the sand. The site was created in 4 days, and the initial capital was only $100.
2. "Social Alarm". The idea belongs to Hrachik Ajamyan, who tried to develop an application that helps people wake up in the morning. His research showed that it is easier for a person to get up when an unfamiliar person acts as an alarm clock, and not a program on the phone. At the moment, the number of users exceeds 2 million, and a private investor who donated $500,000 helped develop the company.

Video

As a hunter, one way or another, I have to observe the stories of various startups. And in fact, all teams go through the same stages, step on the same rake. Having received my personal portion of the rake during the construction of the hunting agency, I carefully stored them all and took them into account when I recently launched the PRUFFI Friends application.

Count only on yourself

The first thing you will hear when you start making a startup is: “What a great fellow you are, do it, do it!” At this point, it is very important to remember two things. First, no one really wants you to succeed. Second: no one will help you. All the people who will shout “We are with you!” at the start will not help you in the long run. And if they do, then don't count on it. It is worth counting only on yourself. You have a path of great loneliness ahead of you. Most likely, from the team with which you start, by the end of the first year there will be twenty percent. And with the rest, you are likely to ruin relationships for many years. Be prepared for this.

hard mode

You are very mistaken if you think that after six months of hard work everything will work out. Nothing like this. The stories of all successful projects without exception are long stories. They last for 5, 10 years. Your startup will absorb you and your team completely (PRUFFI Friends now work an average of 18 hours a day). Therefore, you must have a very strict physical regime: you get up at a certain time, go to bed at a certain time, play sports at a certain time. And so constantly. Your brain works in accordance with the program given to it from the outside, and it is very important for you not to allow failures in it.

If you are going to start your startup, the first thing to do is get enough sleep: for the next many years you will not be able to do this (of course, if you treat a startup not as a hobby, but with all seriousness). Sleep, read, rest - you will forget about it for the coming years. And warn your team to do the same. Everyone will plow the same way, regardless of competencies.

First team

They say the team is very important. It's true. But understand, the story that “our team was so great from the very beginning, we walked together for 10 years, holding hands,” came up with those who survived as a team after these ten years. It's not like they made up those stories. It's just that they probably forgot how things really were.

And if we start to analyze how everything really happened, we will see that almost no one from the first team members reached the end. Based on the experience of PRUFFI and other projects in which I have worked, I will say this thing: it is important to absolutely trust your colleagues, but at the same time understand that at different stages of life these people tend to fall away. For a variety of reasons.

When an idea turns into a product, everything changes very seriously. Either those who work with you do not like the product, or your accomplices do not match it in terms of competencies. While working on PRUFFI Friends, we tried to take this point into account from the very beginning, so what is called the boring word “goals and objectives” was discussed and said so many times that everyone who participated in the work on the project seemed to develop their own language.

And this is very important, because if you think differently about your product, you will either have to part with your accomplices or carry them on yourself as a kind of technical tool: after all, they once believed you, they pawned their cars, they were with you, they you were supported.

Will the family survive

Any serious business tends to destroy not only your friendships with colleagues, but also your family. Therefore, do not go to a startup if you have a recent relationship. Trust me, they won't last. By the time you take on your own project, you should either not have a relationship at all, or they should be well-established. Because if the family does not help you, they will at least interfere with you minimally.

Attention girls. The moment your little chocolate shop scales up, you stop being a girl. This does not mean that you stop wearing skirts, no. This means that you are no longer perceived as a girl and you get even more. You yourself stop perceiving people by gender. And now comes an even more terrible stage, when you turn from a girl into a creature without a gender. you become entrepreneur. And by the way, when you try to “turn on the girl”, no one reacts to this (there is only one young man in the PRUFFI team. — Forbes).

Not your money

If everything goes right for you, you will earn your first money pretty quickly. In no case should you take them out on yourself, even if you really want to. And you will want to be very, very: you want to go somewhere, buy a car, and so on. Do not do this. Your business will need this money very soon, and the more you have, the more likely you are to survive. And that's why.

Investor money is a very unreliable thing. If you started building a business on investor money, it means that you are building it on the money of a business angel. And no matter how decent a business angel may be, the fact remains: this is his personal money. This means that they are completely dependent on him. He can go broke, get sick, or just leave. And it is not at all necessary that he will want to throw you. Circumstances can just happen. Therefore, it is imperative to have your own, comparable to investor capital.

At a certain stage, you will definitely have a conflict with the investor. You will want, for example, to somehow adjust the direction of your startup’s development, and the investor at that moment will quite rightly say: “I’m not ready to invest in this, we discussed such and such a business framework, you have to move there.” And you will answer this: “But I want to come here, and I am absolutely sure of it, you will have to risk your money.” This is where everything will happen.

Now there is a paradigm in which you need to make a business very quickly and sell it very quickly. It works because there is a lot of easy money on the market right now. They will definitely come to you. And believe me, there is nothing worse than accepting money that is not your own. This is a loan commitment. I will say as a woman: you need to choose an investor much more carefully than a husband. Because divorcing an investor is a hundred times more difficult than divorcing a husband.

Gain experience

And finally, one more piece of advice. Don't go into business small. If you want to prove something (to yourself or someone) - then go, they will see you and take you to a big company. But if you're serious about it, it's better to go to a big company first. Understand what the world looks like, what the business is like inside. Get a name there, connections, earn money, and only then go into big business. This will make it much easier for you.

Of course, there is an exception to this rule: it does not work if you are Zuckerberg. But if you're Zuckerberg, chances are you're not reading this right now.

Launching a startup involves a number of mandatory steps. Many business start-ups think that a unique selling proposition is enough, but the success of a new brand depends on many factors that are important to work out before starting. This is our article!

Key points

A startup is a company of any orientation that begins its development in the market. Today it is almost always financed by venture investors.

So what do you need to know about a startup?

1. It starts with an idea, the foundation of any business. If you come up with and then offer a real product that has no analogues, success is guaranteed. The idea needs to be developed by attracting specialized specialists and searching for investors.

2. Efficient team. Keep in mind that you should not count on quick profits, you need enthusiasts who are ready to work “for the idea” first.

3. Starting capital. It is impossible without a financial component. Usually start-up entrepreneurs attract third-party investments, but it is not uncommon for them to be willing to invest their own capital, and not just knowledge.

Testing phase

Launching a startup to implement a project is impossible without testing. If there is no money and a large team of performers (maximum, co-founders), but a lot of enthusiasm, the main thing is to come up with a working model for the company. The process of testing the viability of an idea always involves polishing it.

Next comes the actual testing of the product/service. It is important to draw an objective conclusion, assessing the willingness of consumers to give money for goods. As part of this action, the market is also studied, the main concept of the future company is drawn up, and a portrait of a potential client is necessarily “drawn”.

Testing the idea should not be delayed until the moment the marketing department appears, as there is a big risk of offering a product to an untargeted audience, which means failing.

Sometimes, in parallel with testing, the creation of a prototype begins, but more on that later.

Writing a strategy/goal

Strategy is an important stage in the formation of a “young” brand. It is the viability of the business model that investors then evaluate when making funding decisions. Often the construction of a plan is based on the personal experience of the creator, successful cases gleaned from the Web.

Why is it important to develop a plan?

• Firstly, a strategy is necessary for systematic development (entering new markets, launching new products, searching for partners, merging with corporations, etc.).
• Secondly, the business plan largely determines the size of the investment, how they will be implemented (self-financing or financial investments from outside).
• Thirdly, the construction of the company's management and the selection of employees depend on the planned points of consistent development, the goals set.

A business plan should always contain a “zest” that distinguishes a brand from others and that can interest investors. However, do not overdo it with creativity, efficiency is more important.

Search for investors

So, a good idea has been thought up, a development plan has been developed, a test has been carried out on how efficient a startup is - what else is needed to create? Lack of funding is the cause of the collapse of about 30% of start-up firms. American researchers CB Insights argue that it is the lack of material resources that ranks second in the ranking of failures of “young” brands (by the way, an unsuccessful idea is in first place).

How to get investment? Let's turn to the list of proven methods from Forbes:

• 3 "F" - stands for family, friends & fools (look for money from relatives, friends and ... fools :)
• state subsidies - newcomers have a chance to receive grants, but for this they need to prove the viability of the new brand not only on paper, but also by the presence of their own tangible assets;
• business angels - rich people who want to invest in a young brand (theoretically, they may not even study the business strategy in detail, the idea itself is important to them, there are still very few of them in Russia);
• competitive events are a good chance to get not only investments, but also PR (at the competition it is convenient to test the effectiveness of an idea);
• venture funds - a prerequisite for receiving investments from venture funds is the real practical implementation of the idea (today, special attention is paid to IT projects);
• Last-stage investors are often large corporations ready to provide funds when there is already some stability in the business.

Below is a graph demonstrating the differences in investment sectors of the Russian Venture Fund:

Crowdfunding should be added to the Forbes list - another interesting way to get a share of investments. There are crowdfunding platforms where everyone can present their own project, receive (or not receive) funds for its implementation.

The most famous platforms: Planeta.ru, Boomstarte, Yandex. Money (offers such an opportunity since 2014). Here is a map of crowdfunding, which clearly shows the statistics:

Prototype development

When listing what is needed for a startup, one should not forget about the prototype - it is a working, but not the final version of the product / service.

We recommend that you think over the first offer: it should theoretically solve at least one problem of your target consumer. This will determine whether the right direction of development has been chosen or whether the strategy needs to be adjusted.

Final stages

These stages are called "alpha" and "beta" in the business world.

The first involves conducting final testing with the possibility of improvements. At the same time, start building your client base. The final of the alpha stage is the announcement of the release of the product on the market.

The purpose of the beta stage is to bring the product closer to the final version. Given the criticism from early adopters, consider improving operational efficiency.

The conclusion of the stage is the launch of the finished product, here you can still refine the shortcomings, make amendments if necessary. At the same time, consider the dynamics of sales.

You will learn what startup is and what are the stages of its development, as well as how to open your own startup project and where to look for investors for your business

Today we will talk about how to properly organize a startup.

Since we ourselves have repeatedly launched business projects, we will tell you what obstacles may arise at the initial stage and give you valuable advice on how to overcome them effectively.

1. What is Startup in simple words - definition and history of occurrence

During our short entrepreneurial career, we have opened several businesses and we understand that this is not easy. Now our site "HiterBober.ru" can be attributed to the concept of "startup".

So, first, let's figure out what startup is. The classic definition of a startup, given by the American entrepreneur Steven Blank (who, in fact, introduced this term).

Startup is a temporary structure designed to find and implement a scalable business model.

In simpler words, a startup can be defined as a new commercial project that is created with the aim of making a profit from a business after its successful development.

The term "Startup" is translated from English as "the beginning of the process", its "start". However, not every commercial project that has opened can be called a startup. Only a small part of business projects developing from scratch falls under this definition.

Classic startups have one characteristic feature - they have a unique (original, exclusive) idea. A real startup never copies already known commercial projects, but represents something radically new.

Example

At one time, Mark Zuckerberg's idea to create the Facebook social network was absolutely original and new: there were no analogues of this format on the Internet.

In recent years, the word "startup" has become very popular, although a significant part of the population does not use the term quite correctly.

By this concept, people mean the launch of almost any business, up to the opening of a new stall in the market. Often, a startup is used exclusively in relation to Internet projects.

In both cases, the definition can be correct: if an outlet on the market operates in a fundamentally new format that can be duplicated and used as a profitable business model, then this will indeed be a successful startup.

The same can be said about the online project. If you have launched a fundamentally new network service for serving the population via the Internet, then you have made a successful startup and become a promising network entrepreneur.

Startup- a recently created company or organization (sometimes not even legally registered), building its activities on the basis of innovative ideas or new technologies that have not yet been put into mass use.

The weaknesses of a startup include a lack of funding and a precarious position in the market. Abroad, such projects are most often created by students: sometimes such firms are called "garage" ones.

For the first time this term in application to a commercial undertaking was used in 1939 in the United States. At that time, almost all innovation and high-tech companies were based in the San Francisco area.

Several Stanford students, creating a new business based on a fundamentally new idea, called their business a startup. It was this business that eventually took shape in a successful and profitable company in the field of information technology called Hewlett-Packard or HP.

Today, the word startup is more often used for Internet projects. This is partly true, since it is the worldwide network that is the most promising modern commercial direction.

Without even thinking, you can name 5-10 successful Internet startups that have brought millions of profits to their creators with minimal initial costs. Suffice it to recall the already mentioned Facebook, as well as its domestic version - VKontakte and other social networks.

You can mention Wikipedia (the largest and most popular online encyclopedia), the YouTube video database, the Radical service for storing and quickly displaying your personal photos on the Internet, WhatsApp, Skype and other services for online communication.

2. Main stages of startup development

A startup must be successful and in demand in order to attract the target audience, and along with it, investors' money.

The main indicator of the success of a new undertaking is the readiness of business partners to invest their finances in it. A startup is not always based on pure commerce: it can be informational, humanitarian, scientific, but in any case it is promising.

The initial stage of work on any startup is creation of its prototype . As a prototype turns into a full-fledged product, a startup transforms, develops and scales. Under scaling is understood as an increase in the sphere of influence of the project associated with the investment of finance.

The ultimate goal of a successful startup is product sale a large corporation or the continuation of a profitable business as an independent company. There is another option - the withdrawal of the project's shares to the stock exchange and the expectation of its sale at the maximum price on the market.

For clarity, we suggest studying the following table, in which the stages of a startup are presented in more detail:

№	stages	Embodiment	Peculiarities
1	Pre-seed	The creators have a clear idea and understanding of what exactly the target audience needs	At this stage, there is usually no plan for implementing the idea.
2	Seed - "sowing"	Market research, development of a phased plan, preparation for launch	It is desirable at this stage to think about the search for investors
3	Prototype	Creation of a working model of a startup	The prototype has only basic functions and is designed to work in ideal conditions.
4	alpha version	The product is already ready, but is used only by a small group for testing and identifying flaws	At this stage, adjustments are made and defects in the working model of the project are eliminated.
5	Closed Beta	The product has a fully functional status, a limited number of third-party users are involved	Investors and commercial partners have already been found
6	Open Beta	Users are actively involved, a large-scale promotion of the project is underway	Contracts are concluded with customers, the first sales of services and products are carried out

When the above stages are successfully completed, the product (project) is launched into mass use or production. It is clear that without attracting large third-party capital, a large-scale distribution of a startup is impossible.

That is why for any commercial idea, the investor is no less important than originality and novelty. Even the most ingenious projects need financial support.

Generating commercial ideas is not so much an inborn gift as it is a skill. Every reasonable person with minimal creative inclinations, which, as you know, everyone has, can become a successful startup.

Experts in the field of profitable startups believe that ideas for launching the latest projects can be found in everything that surrounds us. You just need to change the angle of view a little and abandon some of the generally accepted social judgments.

Most "serial entrepreneurs" have a special notebook in which they regularly enter fresh thoughts and observations. Over time, they can develop into interesting and profitable business ideas. We advise you to also have such a notepad or open a special file on an electronic device.

For greater efficiency in doing business, you can use and implement TRIZ - the theory of inventive problem solving.

And now - expert advice on creating your own startups

Let's start with a simple example:

Resale of Chinese goods with a large margin (300-800%).

You can buy goods in bulk in China or from a wholesale supplier in a major city and start selling them online. Often such a scheme is also called "Business with China" - a very profitable and promising direction in Runet.

The team of our site is personally acquainted with a successful entrepreneur in this topic. Zhenya not only has been running her business for a long time and effectively, but also teaches others about it.

If you want to launch your own startup in the near future and start earning 100-200 or even 500 thousand rubles in a few months - contact Evgeny and he will guide you by the hand on all issues of creating a successful business selling Chinese goods.

Be sure to check out the testimonial of the wife's students to be inspired by their success stories:

Stay up to date with new ideas, technologies and initiatives. Visit up-to-date resources, use technical and information novelties and everything that did not exist yesterday. Be at the forefront, think about products for the next generation.

To make our world the way it is (meaning its best features) was helped by those who did not cling to the past, but looked to the future. Our future includes portable gadgets, nanotechnologies, and machines that run on fundamentally different types of fuel.

Try to think in terms of the future. Do not think that these are empty dreams and fantasies: tie innovative ideas to real problems. Original and creative thoughts rarely arise on their own - they need to be stimulated by daily practice.

Tip 2: Become a pro at something

In the modern civilized world, there are many special areas where it is impossible for a person to get from the street. Nuclear energy, medicine, customs, professional sports.

Creating your own business in highly specialized areas is possible only after gaining experience in an employee of a company of this profile.

Become an insider - a person who studies a certain industry from the inside - and you can break into lucrative markets with the necessary knowledge base. The main thing is perseverance and a sincere desire to understand how everything works in a particular business area.

Example

Michael Bloomberg worked as an IT guy at Salomon Brothers. In the early 80s, he was fired, given a compensation of $ 10 million.

With this amount, he created his own firm, Bloomberg L.P., which provides commercial information to interested organizations and individuals. Now the company is the leader in its niche, and Bloomberg himself is 13th on the Forbes list and concurrently the mayor of New York.

Becoming an expert in some field or a master of some powerful tool is not so difficult. Just spend time on it - make a personal investment that will bring you profit for the rest of your life.

A well-known entrepreneur and specialist in personal development and business says that the best investment is to increase your own value and ability to earn.

Meet different people, talk to them, offer your help. Let as many people as possible know about your skills.

It's great if you become cool in several areas at once - for example, in medicine and trading, in stock markets and IT technologies. At the intersection of two different spheres, a lot of perspectives open up.

Tip 3: Find a Problem You Can Solve

Look around and fix what prevents you from living, working or relaxing. Pay attention to such problems for which you cannot find a ready-made solution, since one (the solution) may not exist.

It often happens like this: you have a company that is facing certain difficulties. Another company is created that eliminates such difficulties. Successful activity leads to the fact that the second company becomes more profitable and larger than the first.

Example

Flickr, the world-famous image storage resource, was born when it needed a convenient way to host user-generated images online to run an online game.

Now the system has millions of clients, and no one remembers the game itself.

Tip 4. Strive for continuous service improvement in different areas

Try to improve everything that surrounds you, because there are no limits to perfection. You pay special attention to those things that cause hostility or hatred in people: finding housing and parking, obtaining documents, transportation, visiting doctors. Think about how you can solve these problems more efficiently.

It may be worth bringing in the latest technology to improve existing algorithms for everyday activities.

Consider, for example, how smartphones can help workers in large enterprises perform their jobs rather than hinder them. Or how in the digital age it is possible to solve the problem of queues in public institutions.

Remember that monopolists and large state structures have no incentive to develop. Challenging established systems is difficult, but not hopeless. Some world-famous corporations appeared precisely due to the desire to make the service more comfortable than that of competitors.

A significant part of today's successful companies were at one time derivatives (and some practically clones) of other successful undertakings. The most famous examples are Amazon and Ozon, Facebook and VKontakte. Even credit systems (cards) are a domestic version of the foreign analogue of Capital One.

Consider what can be added to existing commercial projects to improve them. Maybe you should find new, cheaper ways to implement or radically improve the service. Such innovations are often much more profitable and more promising than buying ready-made franchises. About that, we already wrote earlier.

Tip 5. Find a product for new markets

New markets appear all the time, but not everyone has time to track them. Mass products from large corporations are constantly creating many promising directions for developing their own business.

The most illustrative example is the creation of Microsoft by Bill Gates. The company was founded to sell home computer software released in 1975 by MITS. The mass product has become the starting point for the promotion of one of the most successful business projects in the world.

4. Invest in a startup and find funding for your business

All major investors are aware that “dark horses” promise the maximum income - unknown startups from young and talented, but penniless entrepreneurs.

In the Russian Federation, as elsewhere in the world, startups are financed by venture capital organizations and so-called “business angels”.

Venture funds dispose of other people's money - mutual funds (mutual funds), assets of insurance companies or pension funds.

“Business angels” are representatives of private capital who independently choose the objects of financing and invest in promising undertakings.

It is in these two directions that novice startups should move in search of investments. You can also involve relatives, friends, government funds. Oddly enough, in Russia the help of relatives is the second category in terms of investment in promising business ideas.

Another productive method of finding investors is participation in forums, conferences, competitions held by venture capital companies and other commercial structures.

5. Examples of successful projects - TOP-5 startup ideas

There are many examples of successful startups. Every year the direction of commercial thought changes. Today, coworking and Internet applications are relevant, tomorrow they will talk about private kindergartens or private recruitment agencies.

The following startups are the most popular today:

1. Organization of a cargo transportation agency working with the active involvement of Internet technologies. A very promising direction, given the fact that more and more people are shopping in online stores.
2. Organization of sales or intermediary activities through Avito (the most popular free classifieds service in the Russian Federation). Many people want to sell some thing, but do not have time for this: an intermediary can take over the organization of sales for a certain percentage of the proceeds.
3. Organization of a private kindergarten. Many parents do not want to use the services of municipal institutions, fearing a lack of attention from staff. In a private company, children are given more time, in addition, it is possible to regulate the length of time the child stays in the garden.
4. Creation of convenient systems for converting electronic currency into cash.
5. Creation of effective applications for quickly hosting and launching online stores for sales through social networks.

This is just an approximate list that can be supplemented ad infinitum. You can find a more profitable and interesting option for yourself: you just have to get creative and make some effort.

• Translation

Participation in a startup is emotionally like riding a roller coaster, when at some point you feel that you own the world, and after a second - that everything is collapsing. This guide can help you get started.

This article is an update of my previous article written in 2014. It's been almost three years since then, and I would like to update the information in a fresher way.

For 6 years I worked exclusively in startups. I was a "programmer" - a specialist who was hired to turn ideas into a "real" business. I never had the desire to start my own business: is it worth risking a comfortable life for an idea that might not work?

Then 4 years ago I took on the challenge of founding a startup, a 5-day programming course in London called Steer. After two years, I left Steer to launch SuperHi.

Before I start the story, I would like to point out that I'm not a startup expert. In general, I don’t think that anyone can be such an expert, since the experience gained when starting startups varies greatly. However, many people are new to both startups and information technology, so I address this guide to anyone interested in diving into the dark waters of this business.

Money on the road does not roll

The field of information technology is the only manufacturing industry where a business model is desirable but not required. Try to imagine a bakery giving away its baked goods for free and having nothing for customers to pay for - would advertising on the walls save such a bakery? The information technology business copes with this because it has one quality that other industries do not have: scale! The Internet enables this business to reach potential customers around the world.

My previous startup, Steer, was an on-premise course based in London, which meant our client base was geographically limited. SuperHi organizes online courses, which means having students from California to Australia, all over the internet.

If your business model is based on millions of non-paying users, there are two options for growth:

Some balance needs to be found to enter your market. If the offer is too narrow, then there is a danger of having too few paying customers; if it is too broad, it may happen that you cannot solve a specific problem. Watch the video "Simon Sinek's TED Interview: Start with Why?" and think about your idea by asking yourself why you want to take on this case.

You need to be passionate about your idea and enjoy the thought that you will, at least, a year to deal with it. If you're not excited about becoming Mr. Learn Programming or Ms. Taxi Hire, then rethink your situation. The worst founders are characterized by the fact that they only seek to get rich, and they fail due to the lack of a “great purpose” in the soul.

Don't hide your idea

It is very tempting to keep your idea to yourself. Someone, of course, can steal your idea, but if you are not sure about it or are not sure that you can put together the best team to implement it, then this idea may not be for you.

If you force freelancers or consultants to sign a non-disclosure agreement (NDA) before telling them about your idea, then you are not sure about it.

Let's say someone signed your NDA and you launched the project without any leakage of the idea to the outside ... What is to stop this "someone" from copying your idea and making an improved version? Google was far from the first search engine, and Facebook was not the first social network.

One of our biggest competitors recently copied what we do on our online course. The first reaction is always “weasels!” but you have to take it for granted that companies big and small will try to copy you.

Your startup should be the best in its class, not just the first in the market.

Are you ready to consistently implement your idea better than anyone else?

Don't force people to sign a non-disclosure agreement or you'll get in trouble.

Most likely, the initial and final ideas will be very different.

Some successful companies started with completely different ideas. Flickr was originally a themed photo-sharing chat for gamers, Nintendo sold paper playing cards, and Nokia was a paper mill in Finland.

My first startup, Steer, was originally a job counseling site that was transformed into a coding school when we realized we couldn't survive with the original business model.

SuperHi's original plan was to create a program editor for beginners and sell it to other programming schools. We spent a year creating such an editor, but over time we have listened to what our customers want - we use our editor for lectures, but the general idea of ​​\u200b\u200bour business has changed. We, as before, are trying to solve the same problem - to simplify learning to program - but in a different direction.

Startup name

Finding the right name for a startup is very difficult. Given the desirability of the shortest possible name for a web domain, the search process seems to be as follows:

• Step 1: Come up with a great name.
• Step 2: check with iwantmyname.com .
• Step 3: we see that all the best domains for our grandiose name are taken.
• Step 4: Go back to step 1.

Make sure your customers can write your chosen name in 3 tries (think Led Zeppelin or The Beatles) and if possible get the .com option right away if it's affordable - later on if you're successful, domain sellers will raise the price for you significantly.

It is not necessary that the origin of the name be completely obvious - our SuperHi came out of "information superhighway"("information highway"), the memory of the beginning of the development of the Internet (and, of course, the name of our site has nothing to do with getting high after a good puff). The name Steer comes from wandering through the thesaurus and then checking to see if a good domain exists.

Sketch everything

Once you have an idea, be sure to sketch everything on paper. Draw every page, every window on the screen. Don't skip any interaction - if there is a link or a button, what happens when it is triggered? Follow it.

This process allows the idea to move from your head to paper. It also helps those who work with you understand what you are doing. For co-founders, this means that you will be able to agree on the content of your idea. For designers and developers, rendering helps them visualize what is required of them and how long it will take.

Your photo as you draw without skipping a step.

Check your idea

How do you actually test the idea you're working on? Testing an idea or a prototype of a future product on potential consumers.

It's very tempting to believe the praise when it comes to your own idea. Whenever you speak to any potential client, 80% will not criticize you because people tend to be polite and avoid conflict. It's even more tempting to ignore the real criticism you'll get from the other 20% by stating "they don't get it" or "they're just stupid". Maybe they really didn't get it, but if they did, then your idea might be too complex or you're not communicating it well enough...yet.

Start your idea small. Don't build anything just yet. Use your sketches to explore customer problems - don't give them a solution right away, eliminate your own biases and egos - then use the feedback to come up with a solution that fits their problems.

Get ready to learn at a crazy pace. Learn as much as possible from your customers so that tomorrow you can bring your idea to life better than the day before.

Find co-founders you trust

People are an important part of your startup. Good founders know how and when to change something if things are on hold. Ideas are nothing! Performance is everything!

It is possible to conduct business as a single founder, but it is more difficult. Some investors prefer not to invest in projects with one founder, but there are examples of the opposite (Tumblr, Mint, Alibaba, etc.). If you are considering this option, ensure that you have support in areas where you feel you are not prepared. For example, if you are a businessman, then find development and information technology consultants to get useful advice.

I am the only founder in my startup. I really like the role of "dictator" in solving all issues of my business, but it is really tedious, and having only one person in the founders slows down the development of the business. It also means that I am the only component whose failure causes the entire system to fail.

It's always easier to work with friends rather than looking for someone to co-found you. You trust them and you have faith in their abilities. However, startups are a serious test even for the strongest relationships.

If some co-founders perform the same functions - for example, they are all businessmen or designers or developers - then their rights and responsibilities should be very clearly defined. If you all don't like bookkeeping or checking accounts, then who's going to do it?

Disagreement between co-founders is much more common than many realize. I left my first startup precisely because of disagreements with the co-founder. We ended up not being able to agree and arguing every day. It happens and you all move on. There are two good blog articles Mark Suster Both Sides of the Table: The Co-Founder Mythology and The Perils of Founder Fighting.

How to Find a Tech Co-Founder

When I was a freelancer, I received requests weekly if I would like to join a startup as a co-founder - technical specialist (CTO). In most cases, I didn't know the person offering, so I always answered no. It is unlikely that you will marry without knowing the bride.

Programmers can be arrogant and believe that they can only implement the idea on their own, although the programming in the implementation of the idea is only a tiny part of what should be done in a startup. The list of areas of work includes development, sales, marketing, administration, production and much, much more. But right now, you need the tech co-founder more than he needs you.

How do you distinguish yourself from other "people who implement the idea"? You are doing a lot of preparation work. You do a lot of research, drawing, branding. You are preparing a business plan. You do everything that a programmer does not. Show everyone who you really are.

Second, get some skills to present yourself to developers. Learn the basics of programming and/or development so you know what you're talking about. You won't start a bakery if you haven't been into baking. This does not mean that you will be programming a website or some kind of application, but the more knowledge you have about how it works, the more useful you will be.

How to find investors

I wrote earlier that I am not a startup expert: yes, I am definitely not an investment expert. Here's Paul Graham of Y Combinator getting it right, and you should read all of his articles, but especially this one.

You need a "runway" - some time from the launch of your startup to the moment when it becomes profitable. It will, of course, only be a prediction, as most startups never leave the metaphorical runway. Expect this time to be twice as long as you originally predicted, so raise funds accordingly. It is easier and faster to organize one large investment than several small ones.

Raising funds will also take more time than you initially expected. It usually takes 3-6 months, but I've also heard of a year spent on a small fundraising round. Get ready for the tougher one.

There are also "sociable" and "silent" money. Social money comes from people who have experience in your sector of the industry or a good history of investing in successful startups. Silent money comes from people who are unable or unwilling to provide you with any assistance other than investing.

For a startup at an early stage, one should look for so-called seed investments. Don't try to approach relatively large companies like Index Ventures and Balderton right away. For early-stage investments in London, for example, Passion Capital is great, and in New York - Collaborative Fund.

How much money to raise also depends on the runway, investors and location. The first rounds (also called "seed") give from 300 thousand to 3 million dollars in the United States. In the UK, this value is much less - 150-500 thousand pounds. Investors in the US are willing to take on more risk than investors in the UK.

Talk to the people who raised the money. Connect with startups who can advise and guide you through the investment process.

How to hire the best

There are many ways to create a startup in the field of information technology if you yourself are not sufficiently prepared in it. You can hire full-time staff, you can hire freelancers, or you can outsource the work.

At the risk of stating the obvious, I would rate the usefulness of the different approaches on an appropriate scale (0 means “very bad”, 10 means “very good”) as follows: external organizations - 0-3 points, freelancers - 3-8, full-time employees - 7 -ten.

For outside organizations (agencies) you will be one of many projects in the queue and their goal will be to get you out the door as quickly as possible. There is a famous saying: "Agencies are only two contracts away from closing." Engaging outside organizations (agencies) is the most expensive approach.

At my startup, Steer, I ran a 5-day beginners course on the Ruby on Rails framework. As part of the course, the last 2 days have been learning how to create a website for a marketplace such as Airbnb, Etsy and eBay. I anonymously asked several London agencies how much they would charge for all the features on this project. Three agencies issued offers ranging from £35,000 to £60,000 (about $80,000 or €75,000).

Freelancers are better than agencies. They are cheaper, more attentive and more receptive. I also solicited bids for the marketplace website from several freelancers and received amounts ranging from £8,000 to £25,000 (respectively $35,000, €30,000) - less than half the agency price. Freelancers can also be expected to be more flexible in long-term collaborations.

Hard working staff

The last option is full-time staff. This is the most difficult option to implement, but potentially the cheapest in the long run. Employees will make up the bulk of your team and will actually care about what you do.

Beginning designers in London cost about £18-30 thousand per year, experienced - 30-50, novice developers - 20-30, experienced - 30-60 (here, beginners mean employees with less than 5 years of work experience).

In New York, the same line looks a little different (thousand dollars a year): 40-80, 80-150, 50-100, 100-250. Pay attention to the huge difference in salaries in New York and London. This is one of the reasons why American startups have to raise more money.

Equity (shares in your company) must also be considered. In most cases, a share in the capital only "entitles", which, in essence, means the possibility of obtaining it only after a certain number of years. The employee will be able to get something depending on the seniority or if the company is sold. What should be the allocated share depends on the stage of development of the startup, on the qualifications of the employee and on the amount of funds raised. There is an excellent guide to shareholding and equity in IT start-ups.

How to find good employees

When someone starts working for a startup, they are giving up their pre-existing stability and potentially accepting a pay cut to work with you. However, for good people, money is not the only motivator, otherwise everyone would work in banks and be management consultants. Good people want to be part of some great purpose, mission, and they want to believe that their cause is of great importance. And it's your responsibility to convince them that your startup will accomplish this task.

The best place to find people is, as always, the Web. Ask friends or make friends in the IT environment by attending various events. Social networks - both personal pages and company pages - are also a good way to find people. Your supporters and friends will either search themselves or know someone who will.

The other way is advertising. Sites like Unicorn Hunt, WorkInStartups, Smashing Magazine Jobs, and Authentic Jobs are great places to find good staff.

Startup job fairs can be quite extensive - I met an ex-employee (hello, Louise!) on Silicon Milkroundabout - but if you're exhibiting something, then be aware that you will have to expend considerable effort. Don't mess with these horrible ones. Come up with something of your own and grab attention. Be also honest with participants; they won't be grateful if you pretend to know what you're doing now and they later find out you don't.

Design is as important as development

Many people who are about to become founders of a startup in the near future ignore an important part of this process - design. If you look at any popular website or app, you can see how much effort has been put into not only branding, but the entire user experience.

If you are not planning on having an in-house designer, then I would definitely suggest commissioning a freelancer to create the brand identity for you. A strong brand is essential for showing up in a crowded market. The litmus test of a good logo: can you draw it from memory?

I don't recommend using anything cheap like 99designs or Fiverr. Pay a little, but the product will be unimportant. Try to offer the designer some kind of exchange of services if you cannot pay for his work.

Next, deal with user interaction. Read "Don't Make Me Think" by Steve Krug, review Little Big Details and SiteInspire, then take a close look at everything on your site. Make sure everything works as simple and flawless as possible for users. Use services like UserTesting to test the prototype.

Simplify

The first versions tend to be overly complex. Be careful when adding features, keep them as small as possible. Read (or reread) The Lean Startup by Eric Ries.

As an example: in my previous startup, Steer, we launched 7 courses. The four courses competed with each other and we quickly realized that the clients were confused. We narrowed it down to 2 courses, which sold much better than it did with the 7th. The simpler version continues to work.

Even at SuperHi, two years after launch, we are constantly in control of what we do. Should face-to-face classes be removed? Should I add another course? We think about all this all the time.

According to the famous restaurateur Gordon Ramsay: "The more dishes, the lower the standard" - his article is of great importance for information technology companies.

If you're tempted to add new features (and you will be), do so step by step. It's much easier to check if a new feature works and you like it if you change things step by step rather than running multiple features at the same time.

Use services like UserTesting , Optimizely , Intercom and Mixpanel to test, discuss and analyze your clients. The more data you have, the more accurate a decision you can make.

For example, we use Intercom for our live chat on the site. Talking to our users helps us identify information gaps on our site, what is causing problems for our users, and how we can improve our products. This kind of feedback is invaluable to us.

Sales and marketing is the key to success

And now it's built - but no one comes. If you or your co-founder are not very well-known people in your field, then launching your startup will be low-profile. Your next step should be to bring the name of your startup to your audience.

Read Dan Pink's great book, It's Human to Sell. Take a look at the customer experience and why it matters too.

I also highly recommend Steven Pinker's Sense of Style. This is a book about clear conciseness. It has little to do directly with sales or marketing, but it will allow you to write better about everything related to them.

Depending on your startup and industry, different sales and marketing methods will and won't work for you:

• partnership with companies whose customers will benefit from your startup. For example, if you made an online store for young parents, then give discounts to bloggers who write about parenting.
• Internet advertising, such as Google Adwords, Facebook Ads, and Twitter Ads. It's relatively cheap and makes it easy to see what works and what doesn't. Invest a small amount in each campaign and change ads to track performance. You will be surprised by the results.
• Advertising through traditional media such as newspapers and radio. This will only work if you want to focus on a particular place or city first. This is also great for building brand awareness, but it may not affect sales or customers.
• Advertising campaigns. I have seen many startups make the mistake of using ad campaigns to promote the founders rather than the business itself. Control yourself. Staying on the pages of newspapers may not give anything for sale. At Steer, we were featured in a national newspaper, but that didn't result in any additional sales.
• Personal recommendations are the best form of advertising. If people like what you do, they will tell others about it. Focus heavily on the quality of customer service and this will increase the likelihood of you being advertised. You must make sure that every client becomes a part of what you do and your adherent.

Times Square Marketing Approach