Strategies to ensure you’re ready to launch your first startup

Launching your first startup is an exciting journey that combines innovation and market disruption. You might envision yourself as the next Zuckerberg or Gates, ready to take on the world’s challenges with innovation, grit, and a cool office.

However, the road to running a successful business is not easy, especially if it’s your first time. This is one reason why startup failure rates are so high overall, at 90%, with 10% failing before the second year, according to a report from Hubspot. Preparation is very important, not only to come up with a great idea, but also to make sure that your idea is ready to go to market.

Arguments for launching a startup

Looking at the dire statistics about startup failures, you might wonder why people choose this path in the first place. One reason for this is the promise of financial independence, but the recent tsunami of technology layoffs seems to be short-lived. Craig de Vera, lending consultant at Lendovia, said: “Financial independence is becoming more and more popular for young people, reflecting growing societal recognition that financial independence plays a fundamental role in ensuring a stable and fulfilling life. is emerging as a top priority goal.” “For many people, one way to ensure that stability and fulfillment is to start a business.”

Other reasons people start their own business include seeking flexibility and autonomy over their schedule, filling a gap in the market, or experiencing unemployment. But overwhelmingly, entrepreneurs start businesses out of a passion to launch a specific product or service, with 40.2% of business owners claiming this is their main reason for starting a business, according to a report by SCORE .

The importance of financial preparation before launch

All startups need cash, regardless of the product or service they’re selling. “As a general rule of thumb, we recommend that businesses have at least three to six months’ worth of cash on hand to cover operating expenses if possible. However, no matter how much “You need to make sure that your company can afford to do so,” he advises. Colorado Chamber of Commerce.

“Understand that there is more than one way to build a business. Many people think being a venture capitalist is the only way, but it can get out of control and conflict with your impactful goals.” ,” says Bosky Mukherjee, founder of PMDojo, a learning platform for women in technology.

Evaluate your income, expenses, and debt-to-income ratio to determine how much you can borrow without straining your finances. Don’t be afraid to borrow, as long as you do it strategically. “We believe that financial services should empower individuals,” says de Vera. “Mastering the art of managing a company’s finances is critical to ensuring the success of your startup. A nuanced understanding of financial planning will help you build a solid foundation. We recommend finding a trusted financial advisor who can provide objective advice to help get your startup off the ground.”

prepare to launch a startup

Preparing to launch a startup requires a multifaceted approach that includes many aspects, from funding, marketing, and branding to market research and legal structure.

“Prioritize sustainable growth over growth at all costs. Avoid pressure to scale too quickly or hire too quickly. Focus on what doesn’t. This gives founders a deep understanding of where the problems are,” adds Mukherjee.

It’s also important to keep the founders aligned on what you’re working on. Setting clear, achievable goals using the SMART framework (Specific, Measurable, Achievable, Relevant, Time-bound) provides direction and motivation. Equally important is developing a mindset of flexibility and adaptability so that individuals can pivot as circumstances change and opportunities arise. However, some people may benefit from more rigorous goals. “Maybe you’re the type of person who has a hard time motivating yourself to achieve such goals. In that case, a flexible approach may be best. But follow-through If this is difficult, for example if you have too many other priorities demanding your attention, you may want to take a more disciplined approach, such as setting specific actions or procedures. It’s effective,” Steve Martin and Helen Mankin explained in Harvard Business Review. The latter approach is especially beneficial for busy co-founders to avoid making big mistakes while preparing for a launch.

Finally, make sure your business plan is solid. Take the time to sort out the details of your startup and make sure you and all your co-founders are on the same page about your startup’s goals. You should outline your business idea, product development plan, marketing strategy, financial projections, and long-term goals. This document is important not only for internal guidance but also for attracting investors and partners.

Launching a startup is not easy. In addition to a comprehensive and adaptive approach, you need to secure funding to ensure you don’t run out of money before you get off the ground. The preparation phase is as important as the execution phase in the startup lifecycle and can account for only 10% of startup success stories.