17 November 2016

Startups for Dummies Secrets: 8 Important Questions to Ask Yourself

There are sure to be many questions about starting a new business that you want to ask. Maybe you are afraid to look like a fool by asking a question that seems too silly or extremely basic. Well, let’s start off from the point of view that there is no such thing as a silly question. The worst thing you can do it ignore your worries and fears in order to not appear stupid. So, we might as well cover in this section all of the things that you want to know but don’t want to ask.

1 – Should I go it alone?

This is one of the fundamental questions you need to ask yourself at some point. It is clear that many of the most successful start up companies around were founded by teams or by at least a couple of partners. There are definitely some big benefits of having co-founders to help you out. This approach will give you a more balanced set of skills, differing opinions and the ability to get a lot more done in less time. The other point to consider is whether the business is likely to be big enough and profitable enough to support a team of co-founders. If not then how will everyone get rewarded for their hard work?

To help you find the answer: avoid these mistakes.

2 – How do I start a company legally?

The idea of setting up a new company legally is pretty daunting. You may see this as the point of no return, when your ideas finally get turned into reality.The truth is that the exact process will obviously depend upon where you are based. If you are doing this somewhere like the UK, the US or Australia you should find all of the instructions you need online easily enough.You can get an agent to do this you if you like, allowing you to concentrate on other matters. Also, if it sets your mind at ease then you might want to investigate the process of closing a legal company before you get started.

To help you find the answer: open your country government website and read through attentively, there surely will be the answer.

3 – How quickly will I make money?

This is one of the key questions for any new business but it is something that many entrepreneurs instinctively shy away from. Certainly, you need to know that you will start to make money before your initial funding runs out. Clearly, the exact answer to this question will depend upon a wide range of factors. For instance. how quickly will you have a finished product to market and how long will it take for people to give you a try and then pay you? Most successful new businesses take at least a couple of years before they turn a profit, with many of them failing before they get to that point. That makes it essential that you plan for a long setting up period without serious income coming in.

To help you find the answer: read some books that may help you.

4 – Where can I get help?

There is no shame in looking for some help with your new startup. In fact, just about the worst thing you can do is operate in a bubble with no outside help at all. A great place to start is on internet blogs and forums. Just by searching online I have quickly found answers to many of the most difficult issues we have faced on a wide range of matters. You can also look for help from Government initiatives or by going to trade events and speaking to people in the know. The UK and the US are among the best countries for getting startup help from Government agencies right now, as they currently both look to encourage their country’s entrepreneurs.

To help you find the answer: promote your startup all the possible ways and you’ll find people on the same page with you.

5 – Should I hire a local team or outsource remotely?

There are some interesting options for getting a team to help you out these days. While having a local team remains a common approach, there is also the chance to set up a remote team instead. The local team method certainly makes it easier to get together and collaborate in the same room. However, in many cases arranging virtual meetings with a system such as Skype is good enough. The outsourcing approach to team building may be cheaper and could allow you to bring in experts from around the world. Having team members from different cultures can present some issues – language barriers and time differences, for example – but it can also allow you benefit from fresh ideas and different ways of working.

To help you find the answer: tools that can help you to lead your team.

6 – What if I fail?

One thing you probably don’t want to consider right now is what you will do if your ideas fail. However, while you will want to have a positive outlook, you don’t want to just sweep the idea of failure under the carpet. We have to face up to the fact that the failure rate for startup companies is pretty high. Recent figures suggest that half of UK startups fail within 5 years, while the US figures are roughly similar. Of course, you will do everything that you can to avoid making those statistics worse but what if your efforts aren’t enough? The key here is to strike a balance between giving it all you have and being aware that life goes on even if the company fails for one reason or another.

To help you find the answer: tips for entrepreneurs to be successful.

7 – How to find an investor?

Finding the money to fund your ideas is going to be one of the biggest headaches that you have on this project. It is no great surprise to find that a lack of money is a major reason for startups failing. One increasingly popular way of doing this is through startup platforms such as Startups.co, Clarity.fm and Gust. You could also consider a crowdfunding site like Kickstarter or Indiegogo, although you should bear in mind that each one has a different approach and focus. Another ways of getting hold of an investor is with an Angel network, which will help you to get in touch with an angel investor to give you advice as well as investment. Alternatively, you could look at the classic approach of using a private equity firm or the modern method offered by incubators and accelerators.

8 – How to Find a Good Developer?

The lead developer you work with will go a long way to helping that you have a smooth and efficient startup process, provided that you make a smart choice. For starters, you will want someone who has the excellent technical skills that you can rely upon. Apart from that, you need a lead developer who is a strong communicator capable of leading and inspiring others. You might find the right developer at programming meet-up or by looking online for someone with the right skillset. It is important to remember that you need someone who is happy to take on extra tasks and is flexible enough to deal with the demands of a startup.

To help you find the answer: we know a good team;)

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