Blog Details

How to set up a startup?

In recent times, there is a great boost to startups all thanks to the trend set by 'Shark Tank' and 'Shark Tank India' startups are getting great exposure. At any point in your life, you might have come up with the thought of starting your own business.

If yes then you might have tried of taking further steps but due to a lack of sufficient resources and guidelines you might have stopped it.

in 2019, India alone saw a rise of 5 million startups but only 10% were able to get success, and out of that 19 were able to become unicorns. Ever wondered what are the reasons that startups fail?

Here are some of the major reasons that startups fail:-

Lack of funds and poor financial planning
Highly anticipated model which is not in sync with the nature and lifestyle of the target audience
Poor customer service and sub-par quality of the products offered
Lack of focus and legal disputes

So here at VCheatroom, we teach you how to start a successful business in easy steps.

Step 1:- Refine your plan and choose the proper answer to 'why?'

There are several businesses that got a boom by looking at the condition of the market globally. For example software like Zoom, and Gmeet gained popularity during the pandemic times. Before starting your business make sure what you want to do and what type of market you want to be a part of. Learn what the leading businesses in your streams are doing always remember ADO i.e. Adapt:- To the market

Improvise:- According to the reviews, customer reviews,

Overcome:- The problems of the market.

Step 2:- Choose the proper structure of the firm

In many countries, you can be the sole proprietor of your firm which means you can overcome multiple administrative issues easily. But it is very risky parallelly as when the company goes bankrupt in worst cases you have to pay the financers from your own pocket which can be a major issue. There are tax advantages in a limited liability company but on the other hand, they are comparatively complex and costly to set up.

So consider going for partnerships, co-operatives, and corporations.

Step 3:- Finding the right name and catchphrase

Choosing the proper name for your firm can be a humungous task for you. As you have to your company's name should not be similar to any other competitors in the market or even remotely sound phonetically the same. You also need to see that your name is catchy, easily comes on the tongue of people who speak different languages, and many other factors are there to consider for the same.

Don't worry our team is there to help you

Your catchphrase should be something that people can easily understand and get attracted to for e.g. Nike:- 'Just do It', Samsung-'Do what you can't'.

Your catchphrase matters a lot as your complete business idea depends on these 5-10 words.

Step 4:- Focus on your core plan and stick to it

It is necessary to bring diversity to the business but in that case, do not forget the main point of the business. Many businesses fail to grow while trying to start something 'Different'. For example, Uber was basically a part of the Taxi Industry but it tried to enter the Food industry under the banner of 'Uber Eats' and started focusing on it more thus giving its competitor OLA a chance to attract more customers leading to a rise in their share price.

So make sure you diversify your business but stick to the main plan.

Step 5:- Get proper funding for your Startup

A proper funding source for your start-up is very necessary as you need money to start your business wheels. There are multiple ways to get proper financing i.e. through grants, banks, family or friend lending, or personal financing.

Here at VCHeatroom, we guide you through the complete steps of getting proper funding for your firm.

Step 6:- Marketing matters

The major mistake that small businesses do is that they forget or completely remove the budget of marketing from their funds leading to a decline in sales and business.

The most important factor for startups is marketing as it helps your business to reach more people and increase your reach. Proper marketing can lead to customers choosing your business rather than other competitors in the market.

If you follow these all steps you can really reach greater heights and make sure your company becomes a Unicorn.

The first step to reaching greater heights of success is to take the leap of faith toward the market and get going.