Bad advice to start-up: burn money faster

The most important thing in a startup is an idea. It is critical to think thoroughly. Successful idea how good brandy. She needs to let stand in barrels of critical mind, so take the time for reflection. Discuss it only with your trusted business partner.

To talk about it to random people (and potential customers) is not worth it — stolen. Actually, the worst thing that can happen to a budding business, is the theft of your unique ideas. Teams on the market, but few ideas. That is why in Russia so few successful startups just dont have strong concepts, only pathetic copying everything from the West or, even more pathetic, from the East.

So if you find a drum idea, keep it as the Apple of your eye. And. It is desirable that it combined creative other more innovative concepts, which have put in “unicorns” your predecessors. Yes, we should not be ashamed to stand on the shoulders of the great.

If you have already found your idea, remember. Never to cheat on her to correct it or even change focus. It is important to go to the end. The client still does not know what he wants. Follow in the footsteps of Steve jobs — he never yielded, even when his ideas were never believed.

You just have to trust and wait. One more important thing — just specify its global mission. Follow the principles of the book “good to great” Jim Collins from the very start of your business. If you do not aspire to change the world and become at least the new Zuckerberg, then dont expect success.

Now you need to prepare a business plan. It is necessary to work out and calculate all the details. You and your investor have to know the details, how everything will work.

Do not try to write it yourself, you better book at a steep consultants — so-respectable. The investor will not give money unless a solid business plan with the mark of a recognized brand, so no need to spare money from an angel to make an impressive business plan. It is not useful to you will be the lodestar of your business. Incidentally, when you get the first money, one of the rows of expenditure you can make is to create a quality business plan. This is not an expense, but an investment.

Plan the performance of your business for years to come — perhaps even to the time of the IPO. It is desirable to make P&L (profit and loss) for 5-10 years. So you will get potential assessment of the project in our DCF valuation — investor pleasantly surprised by your thoroughness and attention to detail. And Yes, once you make a business plan, contact a large marketing Agency.

His staff will calculate all of the costs of promotion, then you can add them to your P&L. You can then develop. This process is extremely demanding and time-consuming. It is important that the product was perfect, so in any case you cant show it to the client for at least the next 6-12 months.

Go to him with the raw product ashamed. This immediately put a curse seal on business, will make your toxic brand. Youre not wasting money on logo design and corporate identity, and if the client will see an unfinished product, down the drain. Brand end.

But back to the development. We understand that this takes time — a good product, like a fine cognac, aged for only acquires the taste and price. Do not worry if in the process of planning or developing it a few times will change. Trust your instincts and strive for perfection. Therefore, for a strong launch of your product is so important a factor in ease of use.

Even before you start be sure to order an independent usability audit. And dont forget to sign with the Agencys confidentiality agreement, if you have not already stole almost finished product. Finally, you can start preparing for the big launch. Always conduct focus groups with different target audiences.

Your task is to please everyone, regardless of gender, age and social status. The product must be mass — you do realize the highest market capitalization are those startups that work with millions of audiences (Facebook, Uber, AirBnB, Dropbox — do you need more examples?). The final product which you decide to show users must be beautiful, comfortable and all of the key parameters to surpass the competition. Its launch should coincide with the beginning of all campaigns — advertising, PR and marketing.

Gather in the cinema “October” large-scale press conference, as he loved Steve. With a large screen, the broadcast and the project team sweatshirts. Make retainer-contract with a major PR Agency, better of those that already worked for RIW or largest startup competitions. If you pay travel journalists from the regions invite the reporters from TechCrunch and Business Insider (known PR firm can get you on the Mike butcher, he sometimes responds to the invitation to Twitter).

Generally, in dense information flow even brilliant startup today is very difficult to stand out. It is because many unique ideas die in oblivion — usually the fault of lazy journalists. If they dont even write about Coub, to say nothing of aspiring entrepreneurs.

Now that the product is on the market, you can hear what they say about there customers. They never lie. Ask if they like your product, and if they say. “Yes, well be sure to use” immediately invest in marketing and context, because of the ready client you already have — we just have to start selling.

But remember — there is no limit to perfection. You need to understand what the client wants, and consistently make his dream. Collect all the wishes of customers and implement them in one product. Competitiveness it is important to increase on all fronts. You know about the foresight-fleet for roadmap development promising markets.

Do the same for their product. Take a swim in the Moscow river on the boat-flotilla Radisson with their clients, ask how they see the future of the project. They threw ideas for its development in the next few years. But you should not ask about past experience with similar products.

The past is the past, and you do not need to be associated with negativity. Your business looks to the future. Finally on how to measure success. The startup is, of course, the chaos, but still there are some indicators that you can safely navigate.

Buy a subscription to the “Medialogia” and monitoring of brand mentions in social networks. Constantly keep track of the number of publications. After all, the brand needs to start building even before you made the first sale. Actively tell them about your product and your technology genius.

Guided by several press releases per week. By measuring the number of placements, you will be able to track how the growing strength of your brand. Important for six months to plan the conference, which you should visit (preferably speaker). Also submit applications to all start-up competitions, about which you hear (see list of upcoming events with you) — it would be nice to win though in the couple.

Sometimes they are asked to become a sponsor — do not press. The brand is a long — term asset. Dont forget. After the launch of the project should rapidly grow the number of registered users and downloads of your app.

You need a good to invest to get more registrations. Buy advertising in larger communities, make a special project with MDK, and youll want to jump in attendance and downloads. Another good thing to hire an Agency to work with the reviews in Google Play and App Store. Need to get in the top free apps.

Now the main thing — the more users, the monetization model then you will find. Monetization in the early stages of a business is evil, even in the American TV series are already talking about it. Investors will not understand you if you immediately start earning money. This means that you focus not on growth.

Burned investors money, strewed ashes on their heads and dont know what to do next. Apparently, you still do not know about the concept of lean business development. At the Lean Startup conference Russia 2015 you can collect much more good advice. Do not promise that you will make a great product and sell it to millions of customers. But good chance not to fail and to come on strong growth will appear exactly.

Source: google.co.uk/blog/startup-agency-one-way-past-founders-can-help-new-ones/

Leave a Reply