7 tips for founding a startup
Got your great idea, and ready to found a startup? Here’s 7 tips to help you get going.
What is a startup?
A startup is a new or young company founded by entrepreneurs. It has a unique product, and seeks to fill a gap in the market.
Startups are usually funded by the founders on a small budget, and later gain investment to grow.
1. Know your customers
Getting to know your customers is a key part of business success. It’s easy to get focussed on developing your product, but you need to look at your customer base too. Doing market research, looking at any competitors and social media listening will help you learn what your customers want from your product, and how to market it to them.
2. Secure funding to grow
Funding is important to help finance your business growth, but be wise when you’re choosing investors. Before looking for funding, you’ll need a business plan and budget to present to investors. There are different kinds of investors you can choose from.
Angel investors can offer a large amount of funding for a stake in your company. They can offer you support and mentorship too.
Venture capital is another investment option, offering much higher funding than angel investors. They will require seats on your board in exchange for their investment.
3. Choose the right team
When you make your first hires, you’ll also be setting the culture for your company. At the beginning of a startup’s life, you’ll need a team who are willing to try new things, work flexibly and most importantly, believe in your company’s mission.
4. Find the balance
Founding a startup can take up a lot of your time. But, it’s important to find a work/life balance that fits you.
When you’re working, make sure you take regular breaks, prioritise tasks and avoid multitasking to reduce stress. Try to create a routine that lets you shift your focus when you choose to stop working. Balancing your energy between your job and social life will allow you space to relax and come back to work refreshed.
5. Invest in marketing
Instead of relying solely on organic growth, marketing can be a great tool to use. Targeted marketing can help you grow your customer base and increase your sales. There’s some marketing you can do for free, like email marketing and social media.
But, investing some money in marketing can have great results. Your business should have a website, and you can grow your SEO by adding a blog.
You can also experiment with Google Ads and advertising on social media to boost your presence. Advertising offers customised targeting options so you can focus on your ideal customers.
6. Prepare for the future
Make sure you set long term goals for your company, especially if there are investors involved. You’ll need a flexible strategy that can adapt to any changes in the market. It’s also a good idea to have a contingency plan in case anything goes wrong.
7. Manage your finances
Choosing the right accounting software can help make managing your finances simple.
Bokio’s free bookkeeping, invoicing and expenses software has everything you need to manage your business finances in one place. We have everything you need to help you prepare for your Self Assessment tax return, submit your Making Tax Digital VAT Return and keep the right financial records. If you need an extra hand, we can help you find an accountant to work with.
Accounting is kept simple with Bokio, so you have more time to spend running your startup.