What is a startup in simple words. Startup development process

The term "startup" is periodically encountered in the information space. The word has practically become colloquial and in order to make it easier to handle it, it makes sense to close some questions. The article will be useful for both novice entrepreneurs and investors. Those who generate ideas, and those who are looking for ways to translate them.

A bit of startup history

The concept is believed to have originated in 1939, when high-tech and innovation companies were based in the San Francisco area of \u200b\u200bSilicon Valley.

William Hewlett and David Packard led a group of students from Stanford University. They started a new business with a fundamentally new idea. They called their company a startup (start-up - from English: start, start, start something). Today, this startup project is known as the Hewlett-Packard Worldwide Corporation or HP.

It took financiers, entrepreneurs and analysts a long time to decide what lies at the heart of startup. Roofing felts rapid growth of the company, roofing felts big risks when creating a product or service, roofing felts short but vigorous activity. Finally, the American entrepreneur Stephen Blank introduced the classic definition of the term: "A startup is a temporary structure designed to find and implement a scaled business model."

In other words, this is a financial project designed to make a profit in the shortest possible time. The main characteristic of a startup is often called the use of innovative technologies. It is sometimes mistakenly stated that this is a project created on the Internet. In fact, it is not at all necessary that the project should work in the IT field, it can be in any area of \u200b\u200blife: medicine, transport, trade, services, etc.

The difference between a business and a startup

Today it is fashionable to call any undertaking in the field of small business - a "startup", but it would be incorrect. Opening a coffee shop, car wash or launching a new social network will not fall under this definition if there is no unique idea behind it.

A businessman tries himself in ready-made segments with start-up capital. A startup's business project is always a big risk with uncertain prospects for financial investments.

Here are some positions to indicate the boundaries of the concept:

• This is a "freshly baked" company, often not yet registered as a legal entity. Often, startup founders are students. These are young, ambitious people 20-26 years old. Sometimes even schoolchildren. Another name for the startup is "garage business". Young people, for lack of funds, often started business in their own garages.
• At the root of a startup is an innovative idea. Something that will improve life, solve people's problems. The new product, service and does not have to be in the field of IT.
• A team of like-minded people is working on the project. An idea may belong to one person, but it will require support to implement it. Even in the event of failure, a dedicated, well-coordinated team of startups will be able to start a new project from scratch.
• A startup should start selling a product or service as soon as possible. In the West, if a startup does not start working and does not generate large profits in 6-8 months, it will be liquidated. Our promotion period can be 2-3 years, and this is, rather, a business.
• An important component when developing a startup project is finding sources of funding. Moreover, as we progress, more and more infusions will be required. The project will not live long on “bare” enthusiasm, because the main idea is earnings.

Startup development stages

Pre-seed. A clear definition of what the consumer needs within the target audience. At this stage, as a rule, the plan for the implementation of the project has not yet been formed.

Seed-sowing. Preparing to launch. Drawing up a step-by-step action plan. Market research. It's time to think about looking for investors.

Prototyping. Creation of a working model of a startup. The prototype supports basic functions and is designed to work in ideal conditions.

Alfa version. Testing the product on a small group of consumers in order to identify the pros and cons. At this stage, corrections are made and defects are eliminated.

Closed beta. Since the product is already viable, the target audience of testing is expanding. Interested investors and commercial partners should already be found.

Open beta version. Maximum promotion of the project. Conclusion of contracts. Sale of services, products.

Goals of creation and types of startups

By the main characteristics, we highlight the following concepts:

• A person's hobby - a hobby often turns into a project. What "warms" the soul can become a profitable business. The majority of such offers on the startup exchange.
• The most thought-out and calculated projects are those created with the aim of making money. Getting rich is a powerful motivation.
• Hand-made production, hotel or restaurant business are especially popular in the family contract format.

Projects in the "Global Company" category can be considered successful only after reaching the global level. They are unique, state of the art technology, long term and attract clientele from all over the world.

The term itself appeared not so long ago, and many of its explanations are difficult to understand, so the article will tell you, what is a startup in simple words.

Startup history

The term itself originated in America in 1939, which was just celebrated as a boom for new companies in the field of high technology. Translated from English, start-up means "to start". This is the name that two Stanford students David Packard and William Hewlett chose for their company. As you can see, the names of the students later became the world famous brand of Hewlett-Packard.

At the moment, startups are most often called new projects on the Internet, although even history shows that in reality this is not so - and in real life there are start-ups.

Examples of well-known startups:

In addition, the interpretation of the concept of a startup in our country and in the homeland of its appearance is different. This is the name of a new project in our country. In the United States, this name bears an already established company that matches a number of characteristics and has already established the production of a new product or service.

What is the foundation of a startup

1. The main advantage of a startup is its mobility and timeliness. He can immediately implement new solutions. Competitive giant companies are too clumsy and slow to quickly adjust to market changes. Often, investors are not averse to paying for just one idea, and they take it upon themselves to implement it.
2. A friendly and motivated team, ready to work for a common cause, is another component of a successful startup.
3. And finally, the most important issue is financing ideas for a startup.

Financing mechanism

At first, investors were wary of startups, but now they have assessed all the prospects associated with such projects.

Good ideas are picked by:

1. Business angels. They select a suitable startup for investing their own funds. These are the best ones to look for for novice startups. They do not manage the company's activities, the processes taking place in it, but they are ready to invest in an idea if they understand that it is really promising. The calculation is made for future profit.
2. Venture funds that distribute money invested in investment funds. Such funds most often analyze the state of affairs in an already operating company, when the risks are minimal and it is possible to trace the pattern of its activities.

How to find an investor

The most effective is the search for an investor at specially designed conferences, exhibitions, forums. People who are already interested in investing their own funds gather here. It remains only to interest them with your idea. If the project is really worthwhile, there will certainly be an investor.

In addition, here you can:

• make an examination of the project,
• show it to a large audience,
• find future clients.

Investment platforms for startups there is also on the Internet. You should not neglect the publication of relevant information on thematic portals.

Startup development process

Three stages of development can be conditionally distinguished:

• Pre-startup, the stage, the beginning of which will be laid from the birth of the idea, and the completion is the release of the first sample to the market

It, in turn, can also be divided into:

1. pre-seed period - there is a new idea, but there is no knowledge about the further promotion of the product,
2. seed - the market situation is analyzed and an investor is selected.

• Drawing up a technical assignment, making a prototype with basic functionality. Then an alpha version is released for testing. After the identified inaccuracies have been corrected, a beta version is created. Its performance is tested by a closed but wider circle of people. The product is revised again and after that, a public beta version is released for the first customers. Most often, the quantity of goods is very limited.
• Mass production of a product in two stages.

1. Startup is the beginning and the first time of work. Usually during this period there is an increase in sales, coverage of the chosen niche, as well as consolidation of their positions in it. Then the number of niches increases, the growth of sales.
2. The exit of the investor from the business. Having received a pre-agreed profit, investors sell their own share to startups or strategic investors. This is only a rough outline of the development. Investing in startups does not necessarily go through both of these stages.

The term "Startup" is quite common in the information space. Many people understand it as almost all new projects of entrepreneurial activity. In doing so, it is worth distinguishing the usual business model, developed on the basis of already applied principles of production or service provision, from what can really be called such a word. A startup in simple words, first of all, is some kind of innovative project that can bring quick income. It is noteworthy that such innovations are not limited to the industry and the scope. Accordingly, it can be medicine, transport, technology, services, trade, etc.

Difference from regular business

Despite the existing definition of startups, this word continues to be widely used to apply to many projects. This is due to the fact that the existing criteria and characteristic features are somewhat blurred. They do not contain a clear framework that can be expressed in numbers. At the same time, there are still certain indicators that are worth paying attention to:

• Firstly, unique and new product... Moreover, the owner of the idea offers certain things not necessarily without a so-called base or platform. It can be improvement of old services and products. It is important that there are no analogues. In most cases, such ideas arise in the process of using objects. For example, if you add specific details to certain household appliances, it will begin to perform functions that are not inherent in it. It is noteworthy that it must be in demand. Otherwise, it will remain just an innovative solution that was of no use to anyone.
• Secondly, having a business idea as a basis... That is, a person must imagine how to organize the implementation of an idea into life, what will be required for this - production, equipment, premises, software.
• Thirdly, age of startup founders... The average age of a startup is in the range of 25-27 years. Although this does not mean that people of retirement age cannot bring ideas to life. Most of the technology-based projects are owned by businessmen in their 30s.
• Fourth, willingness to work and develop at the start period without profit at the first stages... According to statistics, startups are fully invested in the idea, if we consider it in terms of the finances they have. Additionally, investors' funds can also be attracted;
• Fifth, short terms of the first profit... In the USA, for example, if after 6-8 months it is not there, then the project is closed. In Russia, such a period can last longer - up to 1-1.5 years. On the other hand, if the return on recoupment occurs after 2 years, then such projects are already referred to as standard business models.

Stages of development and formation of a startup

Startups and the principles of their organization may differ slightly, but most of them develop along a certain path, consisting of stages.

First step

The first stage is the birth of a startup. A unique and innovative idea emerges.

The essence of the idea is to improve life, change an existing product, and enhance a certain effect of a cosmetic product. Regardless of the industry and scope, this is something new that has not been used or produced.

It is at this stage that a team is formed near the owner of the idea, ready to work on its design and implementation.

In most cases, even at this stage, funding is needed, even a small one. As an option, at least for equipping an office and getting advice from lawyers, accountants, economists.

This stage is characterized by difficulties in finding investors. Even if there is a ready-made business plan, an organization or an individual must believe in profitability and prospects. And they are not so easy to convince without the first results of their work.

Second phase

The second stage is the formation of a startup. At this stage, there is already a working model and a team working on it. A feature of the team is clearly distributed powers and a strategy for promoting an innovative idea. The first steps in advertising should have already been taken.

For the activity to be carried out within the framework of the law, the aspiring entrepreneur must be registered as a business unit. It can be a legal entity or an individual. The choice of the form of management will be based on the planned volume of goods or services and other parameters. It should be borne in mind that any actions, including the purchase of materials, payment for rent, the conclusion of contracts, must be done on behalf of a legal entity or individual entrepreneur.

The main task at this stage is the formation and debugging of a system for promoting a new product or service. In addition, funding sources should be more active.

One of the options for finding investors, which is beginning to be actively used in Russia, is crowdfunding. The essence of such a project is to make the idea public and receive funds from everyone who wants to profit from it. For this, it is necessary to use special platforms where novice businessmen and startups post their proposals.

Stage three

The third stage is the so-called early development of the project. A characteristic feature is the presence of an already functioning company producing the product.

Accordingly, there is a moment of final formation of the service or product, taking into account the identified defects. Most often, at this stage, additional investors are involved, who no longer need to prove that the project is profitable. They can even offer financial injections themselves, seeing the demand for the product and its popularity.

Stage four

The fourth step is expansion. During this period, the marketing system has been worked out almost to the smallest detail and the company is ready to expand production. New points may open, broadcast advertising increases.

At this stage, many owners of ideas decide to sell the business, since they are interested in something new, and they are no longer interested in doing business in the standard sense. On the other hand, skillful organization and development can bring large amounts of profit. That is, you should not rush to conclusions and make rash decisions.

It cannot be said with certainty that such stages are absolutely typical for all startups. Everything can change depending on the purpose, product, location of the business. The necessity of the formation of the company and the investment of funds - personal or investors remain unchanged.

TOP implemented ideas

Many unreasonably believe that startups in 2019 can be focused on IT-based technologies. In fact, new ideas are not necessarily supported by knowledge of technology or technique. Top startup ideas, which have already received their recognition, suggest that an ordinary person can also bring something new to life:

1. An idea created with the environment in mind... A shampoo for hair is produced, which is poured into a container brought by the buyer. Bottles "Nephentes" outwardly do not resemble the usual shape for such a product. They are more like an enema, which is very attractive to buyers. Thus, the amount of discarded containers that pollute the environment is reduced;
2. Edible tableware production... And we are talking not only about a plate or a bowl, but also spoons are made from natural material. Such a startup has found an application in India, and for its manufacture they use ordinary flour. In the future, entrepreneurs plan to release a gluten-free version.
3. Special finger cots for junk food... The idea originated in Italy and consists in producing them on the basis of latex and selling them as an independent product, as well as complete with chips, crackers, nuts.
4. The use of folding napkins... Initially, the material is pressed in the form of washers - small tablets. When placed in an antiseptic solution, the tissue unfolds. Thanks to the properties of the solution, the napkin also becomes an antiseptic, moreover, with a pleasant smell. The main advantage of the idea is that such napkins are reusable.
5. WeFood special supermarkets opened in Denmark... They sell goods that cannot be on the shelves of regular stores. It sells products with incorrect labeling, with suitable sales dates, and torn packaging.

IT startups

• First, it is widely known to users of one of the social networks prism app... It transforms ordinary photographs, turning them into a kind of art canvases. The application was created by Russian startups. The peculiarity of the program is that it does not just apply a filter, but analyzes the frame and generates an image from scratch.
• Secondly, card-based startup... The Cardberry project is about the idea of \u200b\u200bcreating a device that combines all the cards a user has. If it is necessary to use one of them, the user enters the application and selects it from the list of available ones.
• Thirdly, creation of a service for finding fellow travelers for a trip by car... Such a startup began its life in the USA and is now widely known within the Russian Federation.
• Fourth, creating an application for a mobile phone, which allows you to work in the financial market.
• Fifth, service developmentallowing you to create recipes for dishes, adjust fitness programs.

Finally

Despite the seeming complexity of introducing an idea into a business, such actions are quite within the power of an ordinary person. The biggest challenge startups face is finding a really working idea. To do this, you will need to constantly receive information about developments, the introduction of ideas, the development of technologies. It will not be superfluous to have experience and knowledge in a particular industry. Of course, people without education can also be startups, but the most "long-term" projects were created by professionals.

It is believed that the main problem that hinders the development of startups is the lack of funding. The issue of finding investments is especially acute among social startups, which, in principle, do not have the same opportunities for generating capital and a clear strategy for entering the market, like other startups, but at the same time are distinguished by lower margins and less potential for scaling.

To solve this problem and attract funding in our country, there are many grant programs and so-called incubators and accelerators, which are aimed precisely at helping a novice entrepreneur to present his project and, with luck, to break the long-awaited jackpot.

We figured out the main misconceptions and mistakes that startups make when looking for investors, and talked about how to avoid them.

Major startup misconceptions

1. You need to do a startup in IT, as it is now in trend

Only if your technology is truly breakthrough and you have found applied applications for it. Now there is too much hype around everything related to IT: virtual reality, robots, cryptocurrency. These industries are attracting a lot of attention and money because they promise a quick return on investment. Here companies are sold with a multiple of 10. And if they enter the American NASDAQ stock exchange, then with an indicator of 20: they became public, grew to a certain level, did not die on the way.

In general, the area is really trending, but too many entrepreneurs want to develop in it. Your project runs the risk of getting lost among a dozen other similar products.

What to do to stand out? You can try to integrate new technologies into familiar services. For example, attach Big Data technologies to a hairdressing salon network and collect data about visitors: hair color, dandruff amount, and so on. This information can then be sold to large medical companies or cosmetics manufacturers. It turns out that you cut people and additionally collect the database at the same time.

The second option is to find out for what purposes local and foreign funds, the government of your city are giving money now, and to open a startup in this area.

The third vector is to look for something in some other business, if it is B2B. What are the unsolved problems? This approach is based on the study of customer experience.

New markets and opportunities appear all the time, then they disappear and are replaced by others. We must keep our finger on the pulse.

2. For a startup to work, a good idea is enough

Unfortunately, one idea is not enough: any business is a huge effort and investment. You must become an entrepreneur. This concept includes, among other things, a very careful attitude to finance.

Among startups and aspiring entrepreneurs, there are many people who are passionate about their idea. But this is often combined with absolute illiteracy in business matters and a reluctance to deal with trivial things, such as financial accounting, compliance with labor laws. So, all this will have to be studied and loved, otherwise the collapse is inevitable.

3. Receiving a grant is enough to go international

Aspiring entrepreneurs always want to conquer the world, but very often they do not calculate their strength. It would be very simple if receiving a grant would automatically give access to international markets, but this is not at all necessary, especially when it comes to a local grant.

If you receive a grant from an international organization, it can help you go international, because you will communicate with people from abroad, they will write about you in foreign media. But in the end it all depends on your activity. Obviously, if you have received a grant from a foreign company, you have established a communication channel with this partner. Your task is to expand and develop this channel.

To be successful internationally, you must first conduct thorough market research and adapt your product for the countries in which you want to promote it. The development of an idea abroad without understanding its nature and place in the global market poses a threat to the startup itself.

Najla Al-Midfa, CEO, Sheraa Entrepreneurship Center in the UAE

4. It is not necessary to draw up a clear plan for the distribution of funds

When you apply for funding, you must have a clear plan for spending the money. This idea may seem obvious, but there are times when young entrepreneurs at a meeting with an investor voice a million dollars. And when they are asked to specify what they will spend this money on, there is no answer.

To avoid such a situation, you must have, to achieve which you need investment. It is clear that some part of the money will be spent on operating expenses - salaries for employees and so on, but this must be somehow linked to the achievements of the team: for example, such functions need to be introduced into the product in six months.

Another "obvious" but important rule: the financial plan must be strictly followed. You must show that you spent your money exactly as you intended, and not to buy a luxury car for personal use. Otherwise, claims against you may arise very serious, up to lawsuits. More on this in the next paragraph.

5. Having received money, you can relax

There is a popular joke among startups: the first money is given by 3F - family, friends, fools (family, friends, fools). If these funding sources were not enough (that is, almost always), entrepreneurs start looking for investors, business angels, donors, and go to crowdfunding platforms. However, getting a grant often becomes a fix idea, and this is also a danger.

Getting a grant is really very beneficial for a startup. And first of all, not because it is financial assistance, but because it is an excellent opportunity for PR, which also provides access to the client base. Through grants, an entrepreneur enters a new circle of acquaintances and makes useful ones. The startup actually gets free promotion, it has a chance to "come out of the shadows." The industry media is eager to cover the grant area and closely monitor the success of companies.

But now you got the money, and what next? Many startups relax afterwards. But it is important to understand: incubators, accelerators, investors and funds allocate money only for specific purposes. You cannot get funds just like that and spend them at your own discretion. If a startup said that it needs money to purchase equipment, it means that it will have to purchase this inventory and then document its actions.

An entrepreneur must have a specific business plan, where he clearly prescribes how much money he needs and for what purposes. This must be taken seriously.

It is worth considering one more point: it often happens that an entrepreneur needs to pay a certain percentage of the amount received. As a rule, this is 10–20%, therefore it is necessary to carefully study the requirements of grants and incubators.

6. Promotion in the media after receiving a grant will last for a long time

Yes, the distribution of grants is widely reported in the media. But do not hope that you can now rest on your laurels. On the contrary, you need to do everything so that those who write about the grant fund tell about you. In addition, of course, you need to share the news yourself: on your website, in your blog, in social networks. It's good if it is a well-thought-out PR campaign with specific steps: today we are talking about this, tomorrow about something else.

Please note: you need to tell not only about the fact that you received a grant, but also about how you are spending it.

For example, you received a grant from the city government for caring. You can post photos on social networks for half a year (depending on how much the grant is calculated): “Look what cool cages for dogs we bought. And now a famous blogger has come to draw flowers on our booths. And we also have a competition: who will paint our fence more creatively. " At each stage, you can create a PR-reason.

If you have a limiter in the form of your own modesty, then let us quote the well-known phrase: "Modesty is the path to the unknown." You cannot grow your business if you have paved your way into the unknown. If serious people gave you money for a project, then, in their opinion, it is important and interesting, it is worth talking about it.

Andrey Grigoriev

1. Choose an individual to handle grants

Submitting documents for a grant is not an easy task. We entrusted this task to a separate person who spent more than a month of painstaking work on applying for each grant. Based on this, calculate the time frame so as not to postpone everything until the last day, when you will definitely not have time to make a quality project.

2. Communicate your innovation in business language

Experienced people are usually present at the meetings of grant committees: investors, engineers, experts, top-managers of large corporations. However, despite the high level of knowledge, they may not be experts in your field. Therefore, your application and presentation should very clearly and clearly explain what problem you solve with your product, how you are going to monetize the technology, and give an understanding of the competitive field.

Your words should be understandable to a wide range of people, but at the same time they should not turn into an artistic composition. Here, another common mistake of startups manifests itself, according to the vice-president of the Expo Live grant program Yusuf Kayres, is to apply for a grant with raw, unfinished projects that do not solve a specific problem. First of all, you yourself must clearly understand what is the main value of your project. And be able to describe it clearly and in detail, without water.

3. Set clear KPIs

They will be yours to navigate the challenging oceans of the market. And it is they who ultimately have to determine the success of the project.

You will learn what a startup is and what are the stages of its development, as well as how to open your startup project and where to look for investors for your business

Today we will talk about how to properly organize a startup.

Since we ourselves have launched business projects on several occasions, we will tell you what obstacles may arise at the initial stage and give you valuable advice to effectively overcome them.

1. What is Startup in simple words - definition and history of its origin

During our small entrepreneurial career, we have opened several businesses and we understand that this is not easy. Now our site "HiterBober.ru" can be attributed to the concept of "startup".

So, first, let's figure out what a startup. The classic definition of a startup, given by American entrepreneur Stephen Blank (who, in fact, coined this term).

Startup is a temporary framework designed to find and implement a scalable business model.

In simpler words, you can define a startup as a new commercial project that is created with the aim of making a profit from a business after its successful development.

The term "Startup" is translated from English as "the beginning of the process", its "start". However, not every commercial project that has opened can be called a startup. Only a small part of business projects developing from scratch falls under this definition.

Classic startups have one characteristic feature - they have a unique (original, exclusive) idea. A real startup never copies already known commercial projects, but represents something radically new.

Example

At one time, Mark Zuckerberg's idea of \u200b\u200bcreating the Facebook social network was absolutely original and new: there were no analogues of this format on the Internet.

In recent years, the word "startup" has become very popular, although a significant part of the population does not use the term quite correctly.

By this concept, people mean the launch of almost any business, up to the opening of a new stall on the market. Often, a startup is used exclusively in relation to Internet projects.

In either case, the definition may be correct: if a point of sale on the market operates in a fundamentally new format that can be multiplied and used as a profitable business model, then it will indeed be a successful startup.

The same can be said for an online project. If you have launched a fundamentally new network service for serving the population via the Internet, then you have made a successful startup and become a promising network entrepreneur.

Startup - a newly created company or organization (sometimes not even legally registered) that builds its activities on the basis of innovative ideas or new technologies that have not yet been launched into mass use.

The weaknesses of a startup include a lack of funding and a fragile market position. Abroad, such projects are most often created by students: sometimes such firms are called "garage" ones.

For the first time this term applied to a commercial undertaking was used in 1939 in the United States. At the time, nearly all innovation and high-tech companies were based in the San Francisco area.

Several Stanford students, creating a new business based on a fundamentally new idea, called their business a startup. It was this business that eventually developed into a successful and profitable information technology company called Hewlett-Packard or HP.

Today, the word startup is more often applied to Internet projects. This is partly true, since it is the worldwide network that is the most promising modern commercial direction.

Without even thinking, we can name 5-10 successful Internet startups that have brought their creators millions in profits with minimal initial costs. Suffice it to recall the already mentioned Facebook, as well as its domestic version - VKontakte and other social networks.

We can mention Wikipedia (the largest and most popular online encyclopedia), the YouTube video base, the Radical service for storing and quickly displaying your personal photos on the Internet, WhatsApp, Skype and other services for online communication.

2. The main stages of startup development

A startup must be successful and in demand in order to attract the target audience, and with it, investors' money.

The main indicator of the success of a new undertaking is the willingness of business partners to invest their finances in it. A startup is not always based on pure commerce: it can be informational, humanitarian, scientific, but in any case it is promising.

The initial stage of work on any startup is creation of its prototype ... As the prototype turns into a full-fledged product, the startup transforms, develops and scales. Under scaling the increase in the sphere of influence of the project associated with the investment of finance is understood.

The ultimate goal of a successful startup is product sale a large corporation or continuing a profitable business as an independent company. There is another option - putting the project shares on the stock exchange and waiting for its sale at the maximum price on the market.

For clarity, we suggest studying the following table, in which the stages of a startup are presented in more detail:

№	Stages	Embodiment	Features:
1	Pre-seed	The creators have a clear idea and understanding of what exactly the target audience needs	At this stage, there is usually no plan for implementing the idea.
2	Seed- "sowing"	Market research, preparation of a phased plan, preparation for launch	It is advisable at this stage to think about finding investors
3	Prototype	Creating a working model of a startup	The prototype has only basic functions and is designed to work in ideal conditions
4	Alpha version	The product is ready, but only used by a small group for testing and identification of deficiencies	At this stage, adjustments are made and defects of the working model of the project are eliminated
5	Closed beta	The product has a fully functional status, a limited number of third-party users are involved	Investors and commercial partners already found
6	Open beta	Users are actively involved, a large-scale promotion of the project is underway	Agreements are concluded with clients, the first sales of services and products are carried out

When the above stages are successfully passed, the product (project) is launched into mass use or production. It is clear that large-scale distribution of a startup is impossible without attracting large third-party capital.

That is why for any commercial idea the investor is no less important than originality and novelty. Even the most ingenious projects need financial support.

Generating business ideas is not so much an innate gift as a skill. Every reasonable person can become a successful startup with minimal creative inclinations, which, as you know, everyone has.

Profitable start-up experts believe that ideas for launching new projects can be seen in everything around us. You just need to slightly change the angle of view and abandon some of the generally accepted social judgments.

Most "serial entrepreneurs" have a special notebook in which they regularly contribute fresh thoughts and observations. Over time, they can develop into interesting and profitable business ideas. We advise you to also have such a notebook or open a special file on an electronic device.

For greater efficiency in doing business, you can use and implement TRIZ - the theory of inventive problem solving.

And now - expert tips for creating your own startups

Let's start with a simple example:

Resale of Chinese goods with a large mark-up (300-800%).

You can buy wholesale goods in China or from a wholesale supplier in a major city and start selling them online. Often this scheme is also called "Business with China" - a very profitable and promising direction in the Russian Internet.

The team of our site is personally familiar with a successful entrepreneur in this topic. Zhenya has not only been running his business for a long time and effectively, but also teaches others to do it.

If you want to launch your own startup in the near future and start earning 100-200 or even 500 thousand rubles in a few months, contact Eugene and he will lead you by the hand on all issues of creating a successful business selling Chinese goods.

Be sure to check out the testimonials of your students to get inspired by their success stories:

Be aware of new ideas, technologies and beginnings all the time. Visit relevant resources, use technical and informational innovations and everything that did not exist yesterday. Be at the forefront of thinking about products for the next generation.

To make our world what it is (meaning its best features), helped those who did not cling to the past, but looked into the future. Our future is portable gadgets, nanotechnology, and machines that run on fundamentally different types of fuel.

Try to think in terms of the future. Do not think that these are empty dreams and fantasies: tie innovative ideas to real problems. Original and creative thoughts rarely arise on their own - they need to be stimulated with daily practice.

Tip 2. Become a professional at anything

In the modern civilized world, there are many special areas where it is impossible for a person to get from the street. Nuclear energy, medicine, customs, professional sports.

Creating your own business in highly specialized areas is possible only after gaining experience in an employee of a company of this profile.

Become an insider - someone who studies a specific industry from the inside - and you can break into profitable markets with the necessary knowledge base. The main thing is perseverance and a sincere desire to understand how everything works in a particular business sector.

Example

Michael Bloomberg worked as an IT specialist at Salomon Brothers. In the early 80s, he was fired after receiving a compensation of $ 10 million.

With this amount, he created his own firm Bloomberg L.P., which is engaged in the provision of commercial information to organizations and individuals interested in this. Now the company is the leader of its niche, and Bloomberg himself is 13th in the Forbes list and concurrently the mayor of New York.

Becoming an expert in a field or a master of some powerful tool is not that difficult. Just take the time to do it - make a personal investment that will bring you profit for the rest of your life.

A well-known entrepreneur and specialist in the field of personal development and business says that the best investment is to increase your own value and ability to earn.

Meet different people, talk to them, offer your help. Let as many people as possible know about your skills.

It's great if you become cool in several areas at once - for example, in medicine and trade, in stock markets and IT technologies. At the intersections of two different spheres, a lot of prospects open up.

Tip 3: Find a problem you can solve

Look around and note what is preventing you from living, working or relaxing. Pay attention to any problems for which you cannot find a ready-made solution, since one (solution) may not exist.

It often happens like this: you have a company that faces certain difficulties. Another company is being created that eliminates such difficulties. Successful activity leads to the fact that the second company becomes more profitable and larger than the first.

Example

Flickr, a world-renowned resource for storing image files, came about when it needed a convenient way to host custom images online to launch an online game.

Now the system has millions of clients, and no one remembers the game itself.

Tip 4. Strive for continuous improvement of service in different areas

Try to improve everything that surrounds you, since there is no limit to perfection. Pay special attention to those things that cause hostility or hatred in people: finding housing and parking, obtaining documents, transportation, visiting doctors. Think about how you can solve these problems more efficiently.

It may be worth bringing in the latest technology to improve existing algorithms for daily activities.

Consider, for example, how smartphones can help workers in large enterprises perform their functions, rather than hinder them. Or how in the digital age you can solve the problem of queues in public institutions.

Remember that monopolists and large state structures have no incentive to develop. Challenging established systems is difficult, but not hopeless. Some world-famous corporations have emerged precisely because of the desire to make the service more comfortable than competitors did.

A significant part of today's successful companies were at one time derivatives (and some practically clones) of other successful endeavors. The most famous examples are Amazon and Ozon, Facebook and VKontakte. Even credit systems (cards) are the domestic version of the foreign analogue of Capital One.

Think about what you can add to existing commercial projects to improve them. Maybe it's worth finding new, cheaper ways to implement it or radically improve the service. Such innovations are often much more profitable and more promising than buying ready-made franchises. We already wrote about that earlier.

Tip 5. Find a product for new markets

New markets appear all the time, but not everyone has time to track them. Mass products from large corporations are constantly creating many promising areas for the development of their own business.

The most telling example is the creation of Microsoft by Bill Gates. The firm was founded to sell home computer software released in 1975 by MITS. The mass product has become the starting point for the promotion of one of the most successful business projects in the world.

4. Investing in a startup and finding financing for your business

All major investors are aware that the maximum income is promised by "dark horses" - unknown startups from young and talented, but moneyless entrepreneurs.

In the Russian Federation, as elsewhere in the world, venture capital organizations and the so-called "business angels" are involved in financing startups.

Venture funds manage other people's money - mutual investment funds (MIFs), assets of insurance companies or pension funds.

“Business angels” are representatives of private capital who independently choose financing objects and invest in promising undertakings.

It is in these two directions that novice startups should move in search of investments. You can also attract relatives, friends, government funds. Oddly enough, in Russia, the help of relatives is the second category in terms of the volume of investments in promising business ideas.

Another productive method of finding investors is participation in forums, conferences, competitions held by venture capital companies and other commercial structures.

5. Examples of successful projects - TOP-5 ideas for a startup

There are many examples of successful startups. Every year the direction of commercial thought changes. Today, coworking and Internet applications are relevant, tomorrow they will talk about private kindergartens or private recruiting agencies.

Today, the following startups are most popular:

1. Organization of a freight forwarding agency working with the active involvement of Internet technologies. This is a very promising direction given the fact that more and more people are shopping in online stores.
2. Organization of sales or intermediary activities through Avito (the most popular free classifieds service in Russia). Many people want to sell some thing, but do not have time for it: an intermediary can take over the organization of sales for a certain percentage of the proceeds.
3. Organization of a private kindergarten. Many parents do not want to use the services of municipal institutions, fearing a lack of attention from the staff. In a private company, children are given more time, moreover, there is an opportunity to regulate the length of the child's stay in the garden.
4. Creation of convenient systems for converting electronic currency into cash.
5. Creation of effective applications for quick placement and launch of online stores for sales through social networks.

This is just an approximate list that can be supplemented indefinitely. You can find a more profitable and interesting option for yourself: you just have to get creative and make some effort.