Table of contents
- Market Fit
- Avoid Outsource Companies
- Do not create the perfect product
- Say No To Being Nationalistic
- Entrepreneur Guide – Don’t invest your own money
- Startup Guide -Do not initially register any patents
- Entrepreneur Guide – Allocation of shares in companies
- Entrepreneur Guide Work only with field experts
Starting a start-up includes understanding many issues and dealing with them. This can include legal issues, finance, sales and marketing, intellectual property protection, liability protection, human resources, and more. Early-stage startups have been growing into multi-billion-dollar companies with spectacular success stories.
There are no limits on who can become a great entrepreneur. You don’t necessarily need a college degree, a lot of money in the bank or even business experience. In order to start something that could become the next major success. But you do need a powerful plan and the drive to see it through.
Check out this step-by-step entrepreneur guide to help turn your big idea into a successful startup.
The team is the most significant thing about our startup guide. Building a start-up on your own is very hard. In the world, few successful startups have been created by a single entrepreneur, following their own entrepreneur guide. Each entrepreneur brings his own expertise when a good team of entrepreneurs is in place. An entrepreneur who knows how to solve any problem, knows how to build a product, and thus creates a big business. In perfect harmony, strong employees live and play; entrepreneurs who are extremely motivated to their bones. For every investor, this is also a basic requirement: first of all, a strong team.
From the very beginning of a start-up life, the importance of a perfect team is crucial. For example, 2-3 individuals who can write a code to market the product and make it effective. In addition one that will get investors to join and one that will quickly catch up with the product.
There is no shortage of entrepreneur with a strong idea. But there were no individuals on his side who could put him in an effective position. In such cases, the entrepreneur had nothing. On the other hand, if he already has a strong team, he’s in a much better shape. Even if he has a bad idea than his friend who came with the missing team. (By the way, with equal percentages, all entrepreneurs should be full partners. If one of them started a little earlier and the others came after him. They’ll get a drop less than him, but they should be close to him.
To put it simply the entrepreneur guide you should remember: if you don’t have two people on the team, you don’t have anything: a technology partner + a business partner.
Validation is the second most relevant thing about a startup (validation). Once a programmer and a product person have an entrepreneur on the team, he or she must work day and night to reach a point where the product reaches the minimum valuable product status (MVP).
The primary thing is that the item is going to work. The product’s gotta work!
This included nothing but navigation, taking the first version of Waze as an example. No cameras whatsoever. And with nothing. Its only feature for navigation was so efficient that without any other features it spread quickly. And the founders quickly raised money to expand it as it began to spread. And so are all of the businesses that we know about.
Then of course, adding features and improving technology is important-but all this only after real use.
It is very simple in today’s technology as well. If you have 2 major entrepreneurs on the team, they will work day and night to find a way to make the product work.
“if only we had money in the bank account we could develop the product and market it”. We could develop and market the product. No professional investor will invest in anything without a validated product (unless you are a serial entrepreneur)
Avoid Outsource Companies
This is one of entrepreneurs’ most common mistakes-think of the concept and use “outsource companies” in our startup guide. That’s a critical error! The funds to be invested in the development company are the terms and conditions of the investment. There are many reasons for this the interest of your and the development company is not the same. If you don’t understand the software you don’t know how to manage, a start-up product needs to undergo 10 changes a day to adapt to the market. There is no DNA software. The bottom line is that an outsource company has not been set up to a serious technology company in the world.
Or they settle for an outside company sometimes because of the difficulty of getting a technology partner. Among the excuses are: ”This is only the company’s first stage”. After they write the code and it seems to work, we will take a key person to our team”
All of that-well, excuses. If you are a regular business entrepreneur (a store for example) and you need software to run the business, the only case where a development company makes sense is.
Startup guide: Do not outsource the product’s development.
Do not create the perfect product
When you start a start-up, you start with a certain idea, but you learn a lot of things as you move. Maybe there are rivals, maybe someone does it better than you. Perhaps they didn’t really need what you thought people needed at all. Possibly, they needed something else. As an entrepreneur learns more deeply about the topic he is dealing with, he discovers a lot about the field, the market, the needs of the people, and must be flexible and change quickly as he moves. An entrepreneur should not be stubborn, but learn quickly and change quickly, sticking to his original idea. Studies around the world studying tens of thousands of successful start-ups have shown that all of the world’s most successful start-ups have begun a journey with a specific idea and changed the idea several times along the way until a winning idea came up.
Moreover, dynamic entrepreneurs are loved by investors. Flexible people. They want you to be able to change, in a single moment, the product, presentations or the employees.
Therefore, never a startup creates the perfect product. Contrary to what is common in the traditional industry, a start-up is built into “pieces and pieces” to set up a perfect product and then sell it. Take out a small, partial product, test run, see if it catches up and enhances and upgrades slowly as you move. This is the best way to draw a product, the technology partner writes it very thin with almost no features, but with a clear advantage on the product. Not catching up there? Change it only. Not to catch on again? Switch again, please.
This is because in digital and technological products, the product can be changed and improved very easily all the time while on the move, unlike a physical product that can no longer be changed once it has left the customer’s factory. So you have to take the experiment out, see if it catches up, and then continue to improve. It is a pity to spend a lot of time developing the perfect product if the product is not good and has no market demand, and then find that no one needs it.
Simply put, our startup guide make sure you have a product that works. Not an ingenious idea on paper.
Say No To Being Nationalistic
There’s probably no chance of any business succeeding without it. The company owes its overseas customers/users only (in the vast majority of cases only from the USA). Every client/user you get in the country is a total waste of time. Whether it’s a product for big businesses, banks, hospitals, whether it’s a mass product, you have to have your business in the US. If you’re sold to Bank of America, you’re going to sell to Citibank very quickly, then you can raise an investment and raise $50 million in venture capital from an American fund, and you’re going to sell it fast. There are several reasons for this but the main reason is that the US is the country where everything happens.
On the other hand, you sold yourself to the local bank (not in the US or major country)
You can sell to a few more banks in the same country at most, and they’re not many-and that’s it. There are different regulations in the next country different civic behavior, people using different platforms, different surfing habits, etc. And after them, you won’t get $50 million in investment-while at the same time.
You have to fly abroad on low-cost flights several times and sell there. Or of course, through Zoom or local partner in other ways (zoom, local partner, etc.). You don’t have a start-up without it.
Entrepreneur Guide – Don’t invest your own money
In terms of risk potential, investing in start-ups is a very risky operation. Typically, the entrepreneur strongly believes in his own venture and tends to invest his savings in the venture. But start-ups are a very risky business and in the vast majority of cases, start-ups fail and money is lost. It’s better to raise money from someone who is willing to take the risk, and it’s better to raise money from a professional investor who specializes in start-ups [so-called venture capital funds or private professional investors].
Such an investor understood the risk, and he also knew how to tell you if your startup was good or not. This is also common sense; if you have not been able to persuade anyone else to invest in the start-up, and if you have not been able to persuade a professional investor to invest, the investment is not likely to be the reason for the start-up.
For young entrepreneurs who do not have billions of dollars in bank money and who are strictly prohibited from spending their money on investing in start-ups, things are easy.
Put simply, don’t invest your funds in a start-up.
Startup Guide -Do not initially register any patents
An entrepreneur who for fear of being copied from the concept, does not tell his friends/consultants/neighbors his idea will not get any real feedback on the product and will not get anywhere. In the start-up industry, it is not acceptable to keep secrets, nor is it acceptable for investors or partners to sign a form of confidentiality. Anyone who comes to a professional investor and asks the investor to sign a Confidentiality Form (NDA) will be offended. In the industry, the prevailing logic is that people get up with their usual headaches in the morning, get busy with their work and business, and do not copy their ideas.
Decades of industry maturation have led to a consensus in the industry that this fear is unnecessary, although there have been such fears in the past that someone will steal your idea. Also because, as already mentioned, you almost never find “stealing ideas” and also because the idea is the last thing that matters in a start-up-and what matters is the execution. And the workmanship-oh, how difficult it is.
Plus, if the idea is indeed a good one, there are probably a few more entrepreneurs in the world who are currently working on this idea (you just don’t know about it and whoever wins will be the one who operates the fastest technology, marketing, fundraising, etc. The only thing that will delay you is to keep your confidentiality, and only make you lose your race. Tell the investor that you don’t have any competitors, ” we are alone”
One of the things that we see with entrepreneurs is that they come to raise money after the have patent.’ “We have already registered a patent” With the bombastic words “We have already done provisional” and so on. But the reality is that in software today, there is almost no business significance to the patent. Contrary to popular belief, anyone who files a patent already has a product that is commercially valuable, far from the truth. Patents will not block competitors, and technological patents, especially in the field of software, can now be circumvented.
You can think of any successful technological product and see that, despite the patents, it has strong rivals who have managed to do so. And in the area of software, simplicity and materiality. In addition, patent registration procedures, energy and money, are costly and time-consuming procedures. What’s more as mentioned above, while you’re on the go, ideas change, what you patented yesterday isn’t at all certain that tomorrow will be your start-up.
The war can degenerate into a patent attrition war (not a business war) when there is a business war between large and mature businesses, so large start-ups tend to register a patent so that they have a defensive weapon for a day when a competitor wants to exhaust it in the war. The cases in which a software company is acquired for patents are also very rare and almost non-existent today, bringing near value in itself.
This is not to say that we totally recommend that you give up your patents, but that you just wait for them. Therefore it is time to register patents * only * in the mature phase, when the start-up is already large and has raised several million dollars, but not in the initial phase, when the start-up is just beginning to take its first steps.
Entrepreneurs who are stubbornly involved over and over again in patent registrations).
Simply put: do not keep secrets at the beginning and do not register patents.
Entrepreneur Guide – Allocation of shares in companies
Start-up firms always need money from investors to grow. They also need to give other partners and employees percentages and options), because there is not always enough money to pay them how much they are worth on the market (and the founders are left with a maximum of 30 percent almost always at the end of their journey) together! For example, an entrepreneur who can receive a million dollar investment to set up his company and an investor are interested in 35-40 percent of the company and the entrepreneur. Just energy on the way to maintaining a percentage that will not be important to him.
Dropping the deal is wrong because he believes it’s worth giving only 10 percent to the investor.
This is due to the significance of the holdings.
Not when the company is small, but when a billion dollars is worth it. Then, anyway after countless ups and downs of dilutions and fundraisers, the entrepreneur is left with 8-10 percent, and then the difference is millions of dollars that will not have a critical impact on his wealth-when, in essence, he risks his future today for money that will never be critical to him. An entrepreneur can bring investors, engage serious partners, and considerably increase his chances of success with today’s percentages.
There are many excuses for businessmen to say to themselves, “I prefer a company that I control.”
“This is a company that will make a lot of money right away anyway, why should I dilute it If I distribute a percentage now I will not have any money left.”
“Investors are partners who will intervene for me and make it difficult for me”
These are untrue assertions. Because you can significantly increase your chances of success with the percentage you share today and on the other hand, the difference in the percentage you have at the moment of exit is a relatively small and insignificant difference. Of course, dividing his percentage without an account is not advisable for an entrepreneur, it is worth treating it without common sense and consulting professionals, but on the other hand, skimping on percentages is a mistake.
“The fear of inexperienced entrepreneurs is another word-the fear of investors) “Investors will interfere with me Without exception, all major high-tech companies in the world have received venture capital money. Venture capital investors are usually very experienced, smart people, and they will also be pleasant and calm in most cases, leading the company to its next rounds, selling all of them.
To put it simply our entrepreneur guide: don’t be afraid to break down the percentages that will help you create a huge business.
Entrepreneur Guide Work only with field experts
The high-tech sector differs greatly from other industries. The game’s rules are different. Partnership arrangements, raising of capital, etc. Therefore, it is very dangerous to use a lawyer who is not a clear expert in the field of start-ups, particularly in the early stages of start-ups, where most business activities (founding partnership agreements, first investment agreements) are agreed upon.
You should consider reading our guide for becoming a successful angel investor
This also applies to the company’s accountants, and also to banking.
When entrepreneurs say to themselves, “We will only take a large law firm when we raise a lot of money” while hiring the services of a lawyer who helped to win the car insurance case, will have to pay a lot of money to repair damages. Large law firms’ high-tech departments usually provide their services free of charge to start-ups only after recruitment. That is, don’t pay for it if you haven’t raised a million dollars. And that payment is going to be pretty cheap, or your neighborhood lawyer’s equivalent. So, just get in touch with them and get half free for their services.
Simply put: you will only use high-tech professionals from outside.