When you come up with an idea for a startup, you need Proof of Concept – a fast-growing showcase to help make an initial investment. After that, the MVP development phase begins, where the product is delivered and released at an early stage. The next step is to exit or scale, specify the product through the current software development and after the release of customer service.
Identify the problem and find a solution
In fact, every startup project is a solution to a problem. If you want to start a business, you probably already have an idea of what you want to sell or what services to provide, or the market you want to enter.
If you decide to start a startup abroad, you need to carefully research the market you want to enter with your product. To do this, you can, for example, do the following: interview the target audience to see if your business idea is of interest; Focus groups – Choose a group of people based on certain characteristics (age, career, gender that match your target audience) or before starting a startup, you can ask potential customers to fill out an online survey to find out what they would like to see in the created you product.
It is also important to study competitors, evaluate their ordering service, think about how to stand out against competitors. For example, if the competitors are well-known networks, then the best solution may be to develop something new, innovative, to attract the attention of consumers.
Drawing up a detailed business plan
For the first five years, including a strategy and marketing plan, it will help you understand how many customers you need to attract and how fast your business will grow. These assumptions can be tested for market research to make sure they stand up to criticism.
Development and implementation of MVP
When it comes to launching a fintech startup, the next step should be to test innovation. To do this, you need to create a prototype or minimum viable product (MVP). In this case, such a model is usually formed by using the least time and capital. The MVP is also used to demonstrate the effectiveness of the project. This is necessary to attract creditors, investors, business angels and venture capital for the further development of the startup.
Starting any business has a price, so you need to determine how the costs will be covered. Do you have the funds to promote your project? Will it be necessary to attract external funding? Many startups fail because they run out of money before they make a profit. It will never hurt to overestimate the amount of start-up capital needed, because it may take some time before you start earning a steady income.
Entering the market
After developing an MVP and attracting investment, your project should enter the market. This requires working on the product’s compliance with the requirements of the target market and potential users. Achieving maximum compliance is an ongoing process that includes mandatory testing and feedback. If you intend to create a startup, you should develop a unique sales proposal to attract and retain customers. Marketing, coverage, financing and business model development are the main characteristics of market entry.
Scaling and growth
At this stage, the startup becomes a company that has regular customers and a certain market position. Such an organization is usually focused on improvement and productivity. To compete in the market, startups will need more efficient business practices, outsourcing and automation to increase productivity.