We live in an age of entrepreneurship. One after another in different parts of the world start-up capitalization is breaking records. Such companies based on breakthrough ideas and a scalable business model are one of the most attractive for the investors. At the same time, the startup market is a quite risky and highly competitive thing, especially during the crisis. Who is to take on the project team? Where to find like-minded people? What to emphasize business strategy? How to run the best startup? Competent answers to these questions will allow you to avoid mistakes for the project and bypass competitors in the battle for the coveted money of investors.
Startups are a trend. Startups have become “fashionable” throughout the whole world. Giants of the global economy, such as Google or Microsoft, are yesterday’s startups. It is not surprising that the ability to make thousands of percent profit – if successful – creates the startup sector, despite the obvious risk of losing money. Fleximize.com, an online portal, has evaluated global startups that have reached $ 1 billion in capitalization or more. The average period for achieving such results at leading startups is about 6 years. Moreover, some market sectors are particularly agile. Thus, according to researchers, startups in the field of real estate, social networks, e-commerce, and on-demand services need an average of 4 years or less to achieve such financial performance.
The market for innovative projects is not yet so dynamic and diverse. According to expert estimates, in recent years, 90 percent of startups were launched exclusively in the field of IT technologies. However, the crisis is amending, due to increased competition and reduced investment resources, innovative entrepreneurs start to conquer other sectors of the market. New niches for them are an opportunity to respond to increased demand from the population and at the same time solve social problems.
Today the demand of investors for startups is lower than it was a few years ago. “The amount of money in the market has decreased, accordingly, the behavior of investors changes. They carefully select projects; their requirements are growing. Now, getting an investment is not as easy as it was a few years ago. In such an environment, competition among existing innovative business projects is heating up. In pursuit of an investor, an entrepreneur needs to be faster, stronger and more agile than rivals in the market. The price of errors increases and you have to avoid them already at the very initial stages of the project launch. To do this, you should adhere to the main development vectors of any successful startup, based on the ability to see the worst developments in advance and be as prepared as possible for any market fluctuation.
Choose the right partner
When choosing a like-minded business, try to invest in the core of the team all the skills necessary for your startup. Each of the partners should have one or another experience and talent, which are vital for the development of your specific business project. Founding a new brand? Take care of finding a person with enough knowledge in the field of design and production. Have you decided to launch a new platform in the field of online education? Without an understanding of modern pedagogical techniques and sociological expert assessment, this is not enough. If the founders of the business themselves do not have the set of all the necessary competencies, you will have to attract third-party consultants. The latter, most likely, will be weaker in motivation than the startups themselves, and also will result in additional costs for the team.
Form and train your team
After the partner of the “best startup” is found and the idea is formulated, the search for the team begins. As a rule, at the time of starting a business, there is not enough money or resources to attract experienced and well-paid employees. However, this state of affairs can be a plus for your startup. Engage young and ambitious people without a lot of experience who are willing to work for new skills and practice. Recent graduates can quickly learn new things and find creative solutions to existing business problems. Their fresh look will help the whole team move in the market with unbroken routes. As a result, you and they will be in black. You will receive young professionals devoted to your business, they will have the experience, fast career growth and involvement in a promising project. Also, knowing the mechanism of the entire business, these specialists will be able to more easily switch from task to task and secure each other if necessary. And this, in turn, will provide you with an additional advantage in a crisis period.
Tackle something new
Make sure that your project offers a truly innovative and not previously proposed solution to the problem. This will ensure its competitiveness in the market and make it as attractive as possible for investors investing in startups in Russia. You must be able to answer the question: how is your approach different from all others, what is its uniqueness? Ask yourself about it at each stage of the project development and make the answer to the question of the foundation and main idea of your business. This will avoid a too vague and unclear concept of a startup and will allow you to take more specific and focused steps.
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