How To Start a BILLION-DOLLAR Startup | How To Start A Start-Up

How to start a business? How to raise funding? How To Start a BILLION-DOLLAR Startup | How To Start A Start-Up Planning to start a business.this Article talks about how to start a startup. In this article I have covered 7 steps to start a startup and scale business. This article contains a proper strategy to build a billion-dollar startup from scratch.

Business start-up

How to start a start up? Friends, today many of us want to have our own start up, but very few of us understand How do we proceed further? We see the life of entrepreneur and think that how great life they are having. But we don’t see the pain behind it, that how much pain they suffer. If you want a start up only for the sake of earning money then I will advise you not to have start up. There are chances that you will fail if you are doing it only for money. All of us see the success of entrepreneurs on social media, but there is one thing other than their success that we don’t see. And that is their pain, their capability that how much pain they have endured to reach here. When someone goes for a startup then people around him say only one thing that you won’t be able to do it. It will be not possible for you. But despite of all this the person who succeeds becomes the king. Gone are the days when only the son of king will be the king.today every person can do something big in life. So if you are also looking to have your start up then read this Article carefully. Because today I am sharing 7 step framework on How to start a start up?

Idea to build Start-up

The first step is Ideation. You create an idea. Now to create an idea the most important thing is problem solving. Find a problem of your own and see if this problem is faced by many people, if it is like that then you can have that idea. Very few start ups succeed without a great idea, one of the example is Dream 11. This does not solve any big problem but still today their valuation is $ 2.5 Billion. While generating an idea it is not necessary that it should be very unique but your idea should be executable, you should be able to work on that idea. You should remember three things while generating an idea.

Simple and Practical

First is Simple and Practical. Idea should be simple as well as practical. Byju’s and Unacademy are good examples of this. Very simple idea, they are aggregator in education platforms, they created it and they just aggregate.

Futuristic Approach

Second most important thing is Futuristic Approach, your idea should not be just for today but should be based on future say 5 years or 3 years from now. Have an estimate of at least 5 years while creating idea.

Tweakable

Apart from this the third important factor is Tweakable. This will help you a lot. Many people compare tweaking with stealing. People think that you have stolen someone’s idea. No! To tweak means to do existing thing in a different manner.Let’s take the example of pharmacy which exists from hundred years. This is an existing business, so just tweak it slightly and brought it online with discounts and there is startup called Pharmeasy. This is known as Tweaking.

Feasibility Analysis during startup

Next step is Feasibility Analysis. You perform feasibility checks in your business. Feasibility will let you know that what is the probability of sustaining the business. You would say, why is it so important?

Why Feasibility Analysis during startup is so important?

I will give you a simple reason for that. You will know first what the viability of business. how much is the business viable? What is the probability of sustenance? And when you perform Feasibility Analysis then your risk is reduced and helps you take calculated risks. You have to check 3 factors.

Factors to check during startup

first is that business should be Economically Feasible.

Now what does this mean? You have to check whether all the people are ready to pay for that. Not like you alone are thinking that people would pay me for this, talk at least to 100 people, before starting a start up if they will pay or not.

2nd is business should be Financially Feasible

You have to check whether more Capex or Opex is not required, Capex means Capital Expenditure means like you have to purchase a building or very high capital expenditure is there. Opex means your running cycle. Means your operating expenditure, it should not need crores of rupees to run the business.

Third factor is check Technical Feasibility

See how much technology you will need? It’s not like you are having Kodak technology business in today’s era of DSLR and smart phones. You have to take extra care that your business is technically feasible or not.

MVP – Minimum Viable Product.

Third step is MVP – Minimum Viable Product. This is your key to wealth. Now why I am saying like this? See, Minimum Viable Product is your first product, in initial phase, on the basis of which you can acquire few customers and can talk to the investors that brother I will take this product further and improve it. See, keep three things in mind, first is create Market Segmentation in the starting itself and decide which people you will target and what is your audience?

Market Analysis

Second factor is Market Analysis. Do complete analysis of market. It should be not like you are entering such an industry which is about to shut down.

Competitor Analysis

Third factor is Competitor Analysis. First properly check the competitors. Read properly about their funding, COCA, average revenue per user, all the things, how much profit they are making, everything. Never get so busy with your work that you forget about your competitors. Otherwise one day competitor will knock you down.

Friends, business support is required by all the businessmen and you can’t expect this from normal people they won’t do it. Only an entrepreneur can understand the problem of another entrepreneur. Now buddy how will we solve such a big problem? To solve this there is Tizon, actually what is Tizon?

what is Tizon?

Tizon works on a SSS framework, it is a triple S. Triple S means Start up Support Start up. It is a start up supporting start ups, providing business support to all the start ups & businesses. Now how do they do it?

Startup pilot run

Next step is Pilot Run. Firstly you perform the pilot run. You will come to know many things with pilot run. First thing that you will come to know is whether your idea is actually executable or not? Or it is just an imagination. Acquire the first 1000 customer. After which you will get two things clear, which are very important for you to know, first is Illusion versus Reality.

You will come to know that you were living in illusion and what reality of market is. The second thing that you will come to know is What next I can do to bring the best? What I can do to make this better? And how much money do I need to do so? Be prepared with financial plan from start. You have many benefits of having financial plan. Many people ask for funding without proper financial plan, chances are your funding will be rejected. See you focus on branding first, design, value, strategy, logo, marketing, identity, build the trust. Do all these things. Branding is like a relationship, if you don’t care for it, it won’t care for you. Network with other businessmen build a proper network. Either be the first or be the fastest. Either you enter very early or run so fast that no one can compete you. Not like you have created an ordinary business and expecting the success.

Start-up Team Building

Next and very important is Team Building, this is core, this is the most important one. Your first 12 people will determine where your start up will go. Your first 12 team members will tell where your business will head towards. And it is very important to keep many things in mind while hiring these team members. First thing that you need to see is whether the person you are hiring is reliable or not. Apart from this two other important aspects are there, first is Vision Oriented Hiring. Whether the employee you are hiring is aligned with your vision? Is he able to get your vision? Click here to read full details

Second aspect is Action Takers. You hire the action takers not late Lateefs or some casual guy, its of no use. And someone who is motivated by only money don’t hire him at all. Why? Because the day someone will offer more money, he will leave you. Hire fast action taking employees because they will save not only your time but also organization time. And bring fast growth to your business.

These aspects matter a lot. You can never execute fast if you have slow people with you. So take care of these three things, first is Leverage, whether the people you hire are creating leverage or not? Can they perform in your absence? Because such people will give you more output in less time. Apart from this the second thing which is very important and should be kept in mind is Time Freedom.

Are you getting time freedom or not? Is it like you keep on doing their work and you don’t have time for the important work? The third aspect which is very much required is Compound Effect Is your team able to create compounding effect? Because in business 1 plus 1 is not two but it is 11. So do you have such a powerful team or not?

Profitable and scalable business model

Next important step which is Profitable and Scalable Business Model. This is where the game changes, it is very important. See in business profit as well as scalability is important, if you are having a start up. Scalability is very important. Two things are needed for that first is Growth Plan. First make a growth plan that how start up will grow? How I will take it further? How will I acquire customers? What will be my COCA- Cost of Customer Acquisition? What will be my cost of expansion? How will I expand? Calculation for cash burn, be prepared with calculation of cash burn.

Profitability plan

Second & very important is – Profitability Plan. Most of the people don’t create this. Create a plan that how will I earn profit from the customers that I have acquired. What is my plan to be profitable? How will I generate profit? Because the profit is the only factor with which business is made sustainable. How long will you depend on funding? Make a plan of how you can become profitable in next 2 years or 5 years. For that remember four things, first is Dependency. That what are factors on which your profit depends. Whether it depends on customers or on his pocket. Second is the Cost. What is the cost of business expansion? Is it like it needs lot of money to grow the business.

Check Recurring or One-Time Revenue

The third factor is Recurring or One-Time Revenue. You check whether your revenue model will be Recurring or you will charge customer for One-Time payment. Apart from this Upsell and Cross sell. See how can I upsell or cross sell to customer in future. Cross sell means, came to buy cold drink & I cross sold burger as well. Upsell means he came to buy Rs. 10 product and I sold product worth Rs. 100.

Startup Fundings and Incubation

Funding & Incubation. How funding is raised? Two things are very important to raise funding. First is Pitch Deck, create a Pitch Deck. Pitch Deck is that pitch or presentation which you give to the investors as your pitch. Many things are important in this as well, First thing is your product and concept. Your product and concept should be clear in pitch.

Second is your Vision and Mission. What is your vision, brother? What is the mission of the company? Mention this. Next is TAM/ SAM – Total Addressable Market Size and Serviceable Market Size means how many people you can serve. Then how much will be your COCA – Cost of Customer Acquisition? Apart from this RPU – Revenue Per User, how much will be the revenue generated from one person? Then Growth Projections – what will be your strategy for growth? How will you grow? Apart from this, how much customer base have you acquired in business? What is the plan to acquire? If you have not mentioned all these things then chances are there that you won’t get funding.

Very strong Pitch Deck needs to be prepared. The second important aspect in this is Financial Plan. You should be ready with financials. The first important thing in this is current financials. What are the current financials of your business? Apart from that what is the Revenue Model? Moreover the important thing is Expense Sheet or Cash Flow Statement. How much cash I received & how much cash I will spend? Apart from this you have to mention Requirements, that what is actual fund that you require?

And then comes the Budget Allocation. Which means where will you spend the funds? Not that you will spend it on needless things. You first identify the shortfalls in your Pitch Deck otherwise investor will pin point those and reject your plan. And the most important are your Presentation and Communication Skills. If you can’t present & communicate properly, can’t convince the investor then he won’t fund you. I expect, you would have enjoyed today’s case study.

FAQs Related to Business startup

what is Tizon?

Tizon works on a SSS framework, it is a triple S. Triple S means Start up Support Start up. It is a start up supporting start ups, providing business support to all the start ups & businesses. Now how do they do it?

how to raise funds for startup or business?

First is Pitch Deck, create a Pitch Deck. Pitch Deck is that pitch or presentation which you give to the investors as your pitch. Many things are important in this as well, First thing is your product and concept. Your product and concept should be clear in pitch.

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