8 steps to create a startup ( part II )

 

5. Prototype & Validation

Ready to bring your business idea to life?

A prototype is the best tool for testing both the potential and the necessary functionality of your idea. It’s all about using visual resources to describe how a product, service, or system works. It’s also the smartest way to think about product design. This stage must be completed in two steps:

1.     Create a Paper Prototype

2.     Develop a Digital Prototype

It doesn’t matter whether your project is a physical product, an app, or any other kind of digital solution. A paper prototype is fundamentally important when creating a startup. It brings about the special moment in which you begin to see your idea realized.

You’ll need to be creative too. Use paper, markers, and post-its to design your paper prototype. Once it’s completed, you can start testing your idea with your real people. These can be your friends, family, or colleagues. Let them play with it! As they do so, pay close attention to their user experience.

After collecting all the information, it’s time for improvement. You can now start adapting your solution, either removing or adding features, based on feedback, to reach the next step. Read about the step-by-step paper prototype process here.

The next step is the digital prototype. Most people think you need to know how to code in order to create a digital prototype. Not true! There are a number of free online tools. In particular, we recommend:

• Adobe XD
• Marvel App
• Material.io

To learn how to create a digital prototype for your start idea, check out this article. 

The digital prototype allows you to test-drive ideas for your product or service in a safe and cost-effective way. After creating your digital prototype, testing with real users, and adjusting according to feedback, your startup idea will have become more than just an idea.

6. Marketing Plan & Building a Landing Page

Now that you have your prototype, you can announce it to the world!

To create a startup for real, you’ll need a marketing plan. Define your short and long-term goals, and how these will be managed strategically.

What message do you want to deliver? What’s the unique value of your solution? You’ll need to answer these questions to start your marketing plan. You will also need to define which channels your startup will be on: Facebook, LinkedIn, or Twitter? Your persona will give you the answer. 

An important piece of the marketing plan is the landing page (LP). This is where you’ll redirect your visitors and convert them to leads. An LP needs to give straightforward information about your solution to your potential customers. It’s also where you’ll be collecting users’ data.

This is the moment you’re finally reaching people with a real interest in your startup idea. Let’s look at a real example to make things easier.

Paperchain is a fintech company working at the intersection of media, finance, and technology. The company has a platform that facilitates the payment of royalties in the media industry. The story of the company is amazing and worth reading, as is the LP. 

With a direct message to its niche group, this LP creates context and asks only for an email address in order to start interacting with leads. 

Click here to see the Landing Page. 

If you want to see more examples of effective landing pages, read this post.

7. Business and Revenue Model 

This can be the scariest stage for many young entrepreneurs. But if you want to create a startup, you’ll need to have a business and revenue model. 

First of all, you need to understand the difference between them:

• A business model describes how the company will generate value for its customers, and revenue is included in it. One company can actually operate several business models at the same time.
• The revenue model is about describing how a company generates revenue. Each customer segment can contain one or more revenue streams.

The business/revenue stage is the point at which you have sorted out every factor related to your sales process. Your business and revenue models need to take the following into consideration:

• Industry
• Product launch timing
• Channels used for customers acquisition

This is also the point at which you will figure out costs. This means the per-unit cost of producing your solution as well as logistics and operations. It’s not only about income, but balance.

There are numerous models that you can use to create a startup. However, it’s always important to understand the advantages and disadvantages before you decide what suits your business best.

8. Funding 

Phew… You’ve reached the final stage of the startup process. But this doesn’t mean your work is over. Actually, this is just the beginning of a new journey!

In case self-funding is not a possibility., there are some different ways of getting money to your startup idea. It all depends on your solution and business model. 

• Take Out a Loan: Having debt doesn’t sound fun, but it’s one of the ways to create a startup. You can use your personal network (family & friends), banks, or public loans.
• Crowdfunding: What about offering great rewards in exchange for funding for your startup idea? By creating a cool crowdfunding campaign you can get the money you need without taking on new debt. 
• Grants: Don’t expect to get all the money you need. However, grants are a good option for funding your business. Local governments and private businesses often provide grant opportunities. Use Google to find the best option near you. 
• Investors: If you have watched the Shark Tank show, you probably know what an investor is. But, don’t be fooled by television… There are different types of investors to fund your startup idea. 

These are just some of the possibilities. And you don’t have to pick only one. You can begin with money from your family or crowdfunding. Then plan to pitch to investors or apply for a grant. You need to plan out the best and most viable ways to develop your business.

Congratulations! You’ve reached the end of this post. As mentioned in the beginning, this is an introductory guide. Now you are ready to go deeper into each step, explore each link, and extend your research

Mayte Naranjo- "Ayudo"