Stepping foot into the world of startups can be daunting, endless lists of legalities and formalities to complete can seem overwhelming. And that’s before the question of funding the startup has been considered. To help entrepreneurs prioritize, here are the top 5 things every startup needs to know.
1. Funding will not come easily
Some types of startups will be considered safer bets than others by investors and financial advisors. Banks and other more traditional sources of funding are often reticent about parting with cash to invest in uncertain ventures. There are some business grants available depending on where you are located, but these are often limited. Crowdfunding is another option, but is reliant upon your idea having mass appeal. Startup accelerators are growing in popularity and are now considered one of the most certain ways of securing funding.
2. Do it right from the outset
The legalities of starting a business are complex, but getting your company correctly registered from the outset will save you from a massive headache in the future. If you are launching a product that could be protected by intellectual property laws look into getting a patent or trademark registered before you begin pitching or marketing your idea. Skipping these steps will cost you more in the long term than the initial outlay, as hard as it to part with money before you start generating income, it really does pay off in the long run.
3. You’re going to need more than a good idea
Having a good idea is certainly necessary, but there are other elements that are indispensable for startups to succeed. A stellar team and marketing campaign are key to making a product sell. The ability to develop the idea is also crucial for the longevity of any new company.
4. You will need to outsource
Regardless of how well rounded your skills are, or those of your team, you are going to have to outsource something before you know it. If numbers aren’t your thing, bring in a bookkeeper or accountant early on. If you’re recruiting and don’t have time to process high volumes of candidates, outsource the search to a specialist recruitment firm. Concentrate your resources where they will provide the most value.
5. If you have a day job, keep it for now
Tempting as it is to go full time at your startup as soon as possible and leave your day job, it is often best to keep your regular income for as long as possible. The salary can act as further investment for your startup if you do not need it to live from, or it will keep you financially secure until your startup has grown enough to be a stable source of income.