{"id":5020,"date":"2021-04-19T19:25:53","date_gmt":"2021-04-19T19:25:53","guid":{"rendered":"https:\/\/digitalscientists.com\/?p=5020"},"modified":"2024-04-24T13:21:34","modified_gmt":"2024-04-24T13:21:34","slug":"journey-of-a-startup-10-critical-steps-before-you-begin","status":"publish","type":"post","link":"https:\/\/digitalscientists.com\/blog\/journey-of-a-startup-10-critical-steps-before-you-begin\/","title":{"rendered":"Journey of a startup: 10 critical steps before you begin"},"content":{"rendered":"\n

Starting a business is a lot harder than most people think. More than 90% of all startups fail, according to Startup Genome, the world-leading research and policy advisory organization. Among the most common reasons for failure are problems due to cash flow, market misalignment, insufficient research, and signing on with the right partner.<\/p>\n\n\n\n

\u201cStarting a business takes grit, determination, and vision,\u201d says Bob Klein, CEO of Digital Scientists. And Bob would know \u2013 he\u2019s offered consulting services to startup entrepreneurs since 2007 and has helped launched dozens of software and mobile products during his career. <\/p>\n\n\n\n

When Bob meets with young entrepreneurs, he isn\u2019t shy about challenging them or grilling them with uncomfortable questions. He approaches each project like a venture capitalist, and he\u2019s particular about which projects he takes on. Over the years, he\u2019s honed a skill for recognizing which ideas hold promise and which are likely to fail. <\/p>\n\n\n\n

\n

I think about more than just the product. We have to think about the product, the team, the business model, and the brand, which together create a whole company.<\/p>\nBob Klein CEO, Digital Scientists<\/sub><\/sup><\/cite><\/blockquote>\n\n\n\n

While eager to help startups, he exercises caution before taking on new clients and deploying a team of highly experienced UX designers, software engineers, and product managers. Only until he has full confidence in an idea, does he make a commitment to a new project. Once he does, he advises clients to follow a build-operate-transfer model not only to ensure the product\u2019s success, but to ensure the success of the new company.<\/p>\n\n\n\n

So, how can you begin building your dream? Here\u2019s what you need to know.<\/p>\n\n\n\n

1. Protect your intellectual property with a non-disclosure agreement.<\/h3>\n\n\n\n

This might seem unnecessary when you\u2019re simply seeking advice, but an NDA is critical to ensuring confidentiality during every step of the project \u2013 from ideation to the final handoff. Be sure your NDA is reviewed by an attorney before you begin talking with consultants or prospective collaborators.<\/p>\n\n\n\n

2. Check out a book called The Lean Startup<\/a>.<\/h3>\n\n\n\n

This book, The Lean Startup: How Today’s Entrepreneurs Use Continuous Innovation to Create Radically Successful Businesses<\/strong> by Eric Ries, is mandatory reading for startups. Ultimately, most entrepreneurs want to know the least expensive way to validate their idea in the marketplace. Ries will urge you to test your idea before you bet the bank on it. Don\u2019t skip chapter 6, which discusses a minimum variable product (MVP).  <\/p>\n\n\n\n

3. If you think your idea is unique, you\u2019re probably wrong.<\/h3>\n\n\n\n

Many startup entrepreneurs who\u2019ve done their research are convinced that their idea is unique to the marketplace. But most are wrong. With over 300 million new startups every year, it\u2019s not easy to uncover every nascent competitor. Find a professional to help you research your industry and its various ecosystems. You\u2019d be surprised how quickly an expert can discover a competitor \u2013 oftentimes, within minutes.<\/p>\n\n\n\n

On the other hand, don\u2019t be discouraged if you\u2019re not first to market. Apple wasn\u2019t the first to market many of its products, including the smartphone.<\/p>\n\n\n\n

I’m initially suspicious if anyone says that there’s no other product out there like theirs. I\u2019ve been doing this a long time and have yet to be really surprised by an idea. \u2013 Bob Klein, CEO, Digital Scientists<\/em><\/p>\n\n\n\n

4. Develop your value proposition before you approach a partner.<\/h3>\n\n\n\n

In addition to researching the competitive landscape, develop a value proposition or a point of differentiation for your product. What unique value do you bring to a user? What problem are you trying to solve? What is the job to be done?<\/a> Be able to articulate your vision and value proposition to your current stakeholders and prospective investors. <\/p>\n\n\n\n

5. How is your venture funded?<\/h3>\n\n\n\n

Whether you are self-funded or trying to build until you can get Series A funding, you will need a way to secure financing for each phase of your product\u2019s build, launch, and growth.<\/p>\n\n\n\n

A word of warning: Investors are hesitant to provide capital to startups that outsource all facets of their product development. Typically, for a startup to achieve its valuation, it will need an internal team to either build or market the product. <\/p>\n\n\n\n

6. Hire a research & development team. <\/h3>\n\n\n\n

Beyond competitive research, you should consider hiring an R&D team to prove the technical feasibility of your concept. It\u2019s common to see use cases that are highly focused, in which an entrepreneur brings deep, rich knowledge of a specific context, only to discover that the concept is technically infeasible.<\/p>\n\n\n\n

A critical step in the R&D phase is to develop a minimum viable product<\/a>. An MVP is a simplified version of a product with just enough features to be functional for an early market test. An MVP is intended and designed to collect the maximum amount of validated information about customers and how they interact with a product, with the smallest possible investment.<\/p>\n\n\n\n

7. What\u2019s your business model?<\/h3>\n\n\n\n

A surprising number of startups have focused so much energy on their idea that they\u2019ve overlooked a critical factor to success \u2013 a long-term business plan. For example, if you are launching a product, how do you plan to solve for future growth? Will you build an integration that can connect the new tool to an existing product suite? How do you plan to achieve stability and scale in a diverse and shifting technology landscape?<\/p>\n\n\n\n

8. The best idea doesn\u2019t always win.<\/h3>\n\n\n\n

In this business, there are tectonic shifts at least every six months. Case in point, every time Apple rolls out a new product, it crushes a large number of businesses. Are you prepared for that level of competition? Execution matters. Differentiation matters. Speed matters.<\/p>\n\n\n\n

You need vision, money, stamina, and maturity to go into the software business. \u2013 Bob Klein, CEO, Digital Scientists<\/em><\/p>\n\n\n\n

9. Be prepared for a steep learning curve.<\/h3>\n\n\n\n

Startups are a lot of fun because their cultures often exude youthful enthusiasm and energy, but patience is also a virtue in this industry. Be prepared for many stops and starts for periods of learning and iterating: Learning refers to the time required to observe a user\u2019s interaction with your product while iterating is the process of tweaking your product design based on learning outcomes. <\/p>\n\n\n\n

10. And, finally, develop a long-term business plan using a build-operate-transfer (BTO) framework. <\/h3>\n\n\n\n

You\u2019ll need to outline each step of your development phase, provide details of your operations model, and consider how you will support a transfer of capabilities if you\u2019ve outsourced any phase of the project. <\/p>\n\n\n\n

To learn more about a BOT model and which approach is right for you, visit our blog or contact us directly. We\u2019re always happy to steer innovators in the right direction.<\/p>\n","protected":false},"excerpt":{"rendered":"

So, you\u2019ve got a great idea budding in your mind. You\u2019ve shared it privately with family and friends. Everyone loves it, but you\u2019re not sure where to begin. How do you build and launch it? How do you monetize it? You\u2019re not alone. <\/p>\n","protected":false},"author":9,"featured_media":5023,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"om_disable_all_campaigns":false,"inline_featured_image":false,"_price":"","_stock":"","_tribe_ticket_header":"","_tribe_default_ticket_provider":"","_tribe_ticket_capacity":"0","_ticket_start_date":"","_ticket_end_date":"","_tribe_ticket_show_description":"","_tribe_ticket_show_not_going":false,"_tribe_ticket_use_global_stock":"","_tribe_ticket_global_stock_level":"","_global_stock_mode":"","_global_stock_cap":"","_tribe_rsvp_for_event":"","_tribe_ticket_going_count":"","_tribe_ticket_not_going_count":"","_tribe_tickets_list":"[]","_tribe_ticket_has_attendee_info_fields":false,"footnotes":""},"categories":[48,45,43],"tags":[],"coauthors":[37],"class_list":["post-5020","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-design","category-development","category-product"],"acf":[],"yoast_head":"\nJourney of a startup: 10 critical steps | Digital Scientists<\/title>\n<meta name=\"description\" content=\"Starting a business is a lot harder than most people think. 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