Startup - what it is: definition and meaning of the term, stages of development of the Startup project + TOP-10 of the best ideas for a startup with minimal investment

Hello dear readers of the Rich Pro business magazine! In this article we want to tell what is a startup in simple wordshow to create it and where to find sources of financing for the creation and development of projects.

How often do you hear the word startup in our time? But it has become almost colloquial and is found in everyday life constantly. Some call a startup a business exclusively on the Internet, others believe that startup - This is generally any business project.

If among the readers there are beginning entrepreneurs, newcomers, investors, or at least theoretical financiers, then this publication will be useful for reading. Because the story will be about the most basic conceptsrelated to the term "startup", the history of its occurrence, stages of creation and development of startup projects and sources of funding.

So, from this article you will learn:

• What is a startup in fact - the main signs and features;
• How to create a successful startup project yourself;
• Where and how to find financing in startup projects;
• Who is a startup.

And this article is intended for those who know only financially about financial undertakings of this kind and want to get to the bottom of the truth.

In the article we described what a startup is, gave a complete definition of the term “startup” in simple words, presented the main stages and key moments in the creation and development of projects, and also brought up relevant and interesting startup projects for small businesses

1. What is a startup - the history of occurrence and definition in simple words

Far away 1939 in the United States, near San Francisco, which was a center for the development of new technologies, graduates of Stanford University, David packard and William Hewlett, developed an idea, tested in practice and called their project a startup (from English startup - start, start).

Today this project is known as a huge company that produces computers, laptops, office equipment and related software under the logo HP, or Hewlett-packard.

Later in 90s, many financiers and entrepreneurs argued over the definition of the startup term, calling the main characteristic feature either a short period of active activity of the company, then mandatory rapid growth, then the creation of a product or service in high risk conditions.

The classic definition of a startup is considered to be the one that was formulated by a successful American startup Steven Blank, namely:

"Startupis a temporary structure aimed at finding and implementing a scaled business idea ".

Simply put, startup - this is a new financial projectwhose goal is the rapid development and profit.

But is it that simple? After all, if you rely on this short definition, then absolutely every business you just created can be proudly called a startup project.

It is not for nothing that new technology was mentioned in a story about the history of the Hewlett-Packard company. After all, the first product released by HP was a conventional generator, where a simple incandescent lamp was used as a resistor.

This innovation (namely, innovation!) Allowed us to make the generator work more stable, and at the same time reduce its cost. So the project became competitive and profitable.

Thus, the main characteristic of startups is just the use of any latest technologyno one else not tested before.

For example, the opening of a traditional cafe - This is an ordinary business project, but if the service in this cafe is carried out in some completely innovative way, which is ideologically justified and financially justified, then this is a startup project.

Other erroneous the opinion is the belief that a startup is necessarily a project created on the Internet. Of course, there are reasons for such a statement: now the sphere of Internet business is developing so actively that almost all the innovations are connected with the worldwide network. Therefore, most people who do not understand deeply the intricacies of business and new technologies, call any Internet project at the same time as a startup.

What other distinctive characteristics of startups exist?

• Product design and development, services, ideas, which the newly founded young company offers (for the implementation of the project, the creation of a legal entity is necessary) always a team of like-minded people.

In this team, everyone has their own responsibilities, but they are united by the belief that the result of a common cause is necessary for people and will be able to improve life in general.

No matter how pathetic it may sound, but practice shows that only those startup projects that began precisely with the formation of such a global idea were able to overcome all the difficulties of growth and development and turn into a long-term profitable business.

• A startup project, like any other undertaking, needs cash injections.

But it so happened that startups are almost always young people, students and even pupilswho don’t have enough funds to develop their project, and their task is different: they should be engaged in the development of the idea, product, service that they offer.

Therefore, an important part of the work on the project is the search for funding sources. Moreover, the further the project moves, the more funding it needs. Who usually finances such projects and where to find these sources will be described in detail in the continuation of the article.

Startup- a completely young project, which is based on some completely new idea, not used before by anyone;

The project can be created in any sphere of life: medicine, trade, transport, services and so on;

Successful development of a startup project requires a close-knit team of developers and assistants, as well as sufficient funding until the time when the project becomes self-sustaining and profitable.

The main problems of startups and features in their creation

2. Features of Russian startups

Separately, it should be said about the specifics of the creation and development of startup projects in Russia.

Everyone knows that in the formation of the business sphere, Russia lags far behind the West. Therefore, the fact that in the USA and Europe has long ceased to be a novelty and has acquired established forms, we are only going through a stage of rapid growth and formation. In particular, this statement applies to startups.

In Russia, there have never been shortcomings of good brains and bright ideas. To date, there are also conditions for the implementation of interesting ideas. But as you know, every barrel of honey has its own fly in the ointment.

The main problems of startups in Russia

Analysts identify 3 (three) problems that Russian startups face:

Problem 1. Cash support

The problem arises almost immediately when the project begins to need financial support.

Finding sources of financing is not easy even for serious adult entrepreneurs who have a well-established profitable business and a good reputation. What can we say about young people who do not yet have a reputation or profits from their project.

Banks they ask for a high percentage for a loan, which in any case will have to be repaid.

Crowdfunding in the Russian segment is not yet so developed, and the appeal to the western sites is associated with the complexity of converting and withdrawing money. In more detail about crowdfunding, what is it, what kind of Russian sites exist, and so on, we wrote in previous issues.

Venture capital funds put forward a lot of conditions before giving the young team material support.

It remains to rely on personal funds, the help of family and friends, or try to search business angelwho will believe in the project and finance its development.

Overcoming this complexity, perhaps, primarily determines the success of the entire project as a whole.

Problem 2. Startup development time

Another problem is related to ignorance of the theory of promotion of startups in time. A similar project in itself is characterized not just by development, but by rapid development. And assigned to this stage from 6 (six) to 8 (eight) months. And then, if the project does not start to make a profit and pay for itself, shut it down.

In Russia unsuccessful startup projects last for years, sucking money from startups and investors themselves and turning into unprofitable and hopeless enterprises.

Problem 3. Project implementation

There is another rather serious problem in the field of startups implementation in Russia.

It consists in the absence of interest in large production companies in acquiring and further developing successful innovative developments.

Whether this is due to the general policy of the state, which does not pay any attention to creating the conditions for the appearance of this type of entrepreneurship, or is it just that the startup industry is still at a low level - it’s hard to say.

Hopefullythat over time, Russian startups will have strong support in the form of government agencies interested in developing innovative technologies in practice and introducing them into existing industrial production.

In almost all stages of the development of a startup project in Russia, there are serious difficulties associated with the yet imperfect ecosystem for such projects and with the uncertainty of its further existence.

Stages of development of business projects + comparative table

3. Key stages of development of startup projects

Like any project, a startup overcomes several key stages in its development.

It’s worth mentioning right away that such a division is approximate and depends on the purpose and project focus, from the scope of his activity and other criteria, which will affect the speed of development, and the number and level of investment in the project, and the result of the activities of the start-up company.

This division is based on the development of the same Stephen Blanc, author of the book "Four steps to insight", where he described a model for the gradual development of a startup and the cautious spending of investment funds. Later, this model formed the basis of the philosophy of lean startup Eric Rhys.

Stage number 1. Startup startup (pre-seed, or presowing)

This is the stage of the idea. The very exceptional idea, which is based on some kind of innovative product, service, technologycapable improve and make life easier modify the existing product, enhance the effect of the action of the drug, and so on, depending on the sphere of activity of the creator of the idea.

At this stage a team of like-minded people, assistants, who believe in the effectiveness of the business conceived, is formed, an approximate plan for developing an idea is developed, options for searching for investors are considered, and a prototype of a product, service, technology, if it is already created, is tested.

Financing is necessary at this stage, even if the minimum. Most often, personal tools of developers, their families and friends are used here.

If necessary and possible for a startup, it makes sense to contact business incubator, where he can be provided with an office space with connected communications and various types of services, from secretarial to legal and consulting.

Finding an investor at this stage is very difficult, since the project does not yet have any achievements by which it can be judged on its effectiveness.

Nevertheless, it’s worth trying, as there are investment companies specializing in investing in startups in the early stages of development.

Such organizations do not have a lot of capital, but at the same time they have a strong analytical apparatus to conduct an examination and calculate the prospects of investments.

Stage number 2. Formation of a startup (seed, or sowing)

At the seed stage of the startup’s development, a working model already exists, a well-coordinated team is created where the functions of each member are clearly distributed, a detailed strategy for promoting the project on the market or in the user environment is drawn up, a legal entity is drawn up, the first steps are taken in advertising and finding investors.

The task of startups at this stage - debug the product promotion system and look for sources of financing.

Yes, it is these components that are more important than bringing the product, service, technology to the ideal.

Because attracting investors - a painstaking business, requiring time for direct search, negotiations, decision making and conclusion of an agreement. Sometimes it can last a month - two, or even more.

During this time, it is quite possible to bring the product to mind and even get some profit, which will probably positively affect the decision of the investor to invest his money in such a promising undertaking.

Financing at this stage is already more serious, since it is necessary to pay for the work of team members, rent and maintenance of the office, if necessary, overhead.

Finding an investor at this stage - The task is also not an easy one. Investments are required more than at the initial stage, and there is no profit yet or it does not cover current expenses. On the other hand, there are already fewer risks.

And here it would be an ideal option to find business angelthe person who will calculate the prospects of the project and wants to invest in it a certain part of their own fundsat.

Another source of funding at this time is crowdfunding (public finance) - receiving funds from a community of people who are ready to make money to help, in this case, the development of a promising startup project.

Stage number 3. Early development of the project (Alpha version)

The stage of early development is characterized by the presence of an operating company that makes a profit, occupies a prominent place in the market or in another consumer environment and is popular among users of the product.

The task of startups at this stage it becomes the final formation of a product, service, technology, the correction of identified defects, inaccuracies, that is, bringing it to perfect condition.

At the same time, the promotion of goods on the market continues, massive advertising in order to increase revenue or expand the consumer circle.

The need for additional financing is still there, because the costs of maintaining the company and implementing marketing plans are growing, and although there is profit, but does not cover all expenses.

To attract investors, the stage of early development - Golden time: they themselves find startups at this stage of formation. This is understandable, because it is already visible and the effectiveness of the idea itself, and company profitability, and other characteristicsindicating the prospect of further cooperation.

Here you can connect investment venture capital funds and business accelerators - organizations specializing in professional assistance to developed startups that are ready to grow into a big business.

Stage number 4. Startup extension (closed Veta version)

Expansion- this is the stage when the company has a completed functional product that brings constant profit.The marketing strategy at this stage has been worked out to the smallest detail, and the company is ready to scale, that is, increase sales, expand in related fields of activity or attract a wide range of consumers.

At the stage of expansion, contracts are concluded for the sale of goods, services, technologies, new stores are opened, the quantity and quality of advertising is increasing to attract users on the Internet.

An important task at this time, experts consider the correct construction of both the company itself and its relations with investors. What is meant? The owners of the company must determine its future and, in accordance with this, distribute shares among themselves and formalize relations with investors legally.

If the founders intend to develop a business, especially when one of them is also a product developer, then it is more logical to direct efforts towards obtaining high profits.

Besides, preferably limit amount of investment from venture funds and bet on business partners.

If the company is supposed to be sold or the project can function perfectly without the direct participation of the founder, then the work should be aimed at finding a suitable investor who wants to buy a controlling stake at a reasonable price.

Having saved a small share, the startup gets the opportunity to engage in other projects.

Stage number 4. Maturity of the project (open Beta version)

In principle, the maturity stage indicates that a startup project has become a serious business, when a company takes a leading or close place in the market, has a high return on investment, the company staff consists of a team of highly qualified specialists, and their work has been debugged.

Most often, at this stage, the company begins issuing shares that bring income to its founders.

In other cases, the company is sold as a ready-made business.

There is no doubt that in the development of each individual project there may be a different number of stages. It depends on the goal set by the startup developer, the scope of activities and the overall development strategy of the company. And only one item remains mandatory for any startup project: each of them needs an investor!

The main sources of financing will be discussed in the next part of the article.

We offer to study the table, which describes what is needed for each stage of startup development, as well as where and what funding is needed:

4. How to attract investment in startups - TOP-7 sources of funding for a Startup project

How often in life happens when "there is an idea, but no money"! And most often this happens with startup projects, which, as mentioned above, are created by young people who do not have sufficient funds to finance their project.

Fortunately, the opposite also often happens: "there is money, but no idea". There are always people who themselves cannot come up with an idea, but they have the gift to recognize promising projects, they know how to develop them and are not afraid to invest money in them.

We are talking about investors and investment organizations specializing in investing in startups.

But in fact, there are much more sources of financing. Each of them has its own distinctive features and capabilities at one or two stages of the project development.

Investing in startups - finding an investor for a startup: the main sources of project financing

This section of the article is devoted to a detailed analysis. 7 (seven) main types, or sources offinancing startup projects.

1) Personal savings of startups

Used at the stages of origin and formation, when idea of ​​a product, service, technology, as well as the business plan of the startup itself are under development, and so far there is simply nothing to offer third-party investors. By the way, we talked about how to draw up a business plan in the last issue.

In addition, often the creator of the idea does not want to share all the details and subtleties of the model he is developing for fear of losing authorship and control over the development of the project.

Attracting third-party investments in this case is impossible, except for those that friends and immediate relatives are ready to make.

2) Funds of relatives and friends

They are used in the first stages of the formation of the project, when costs are already there, but there is no profit. At this moment, friends and relatives can act not only as financial assistants, but also as the first users of a product or service.

By the way, analysts argue that this source of startup investment in Russia is very common and ranks second in terms of investment.

3) Crowdfunding

The so-called public funding can be used by a startup in the initial stages of project development.

What is crowdfunding? This is a voluntary fundraising, and not only material, for events or the creation of objects and values social, social, political, cultural, scientific directionality.

Crowdfunding is most often carried out via the Internet, and it is characterized by a clear goal setting, announcement of the required amount, budgeting, or costing, and always informing the participants of the meeting.

This type of financing is popular in the West. since 2000 and since 2007 developing in Russia. Internet platforms (kickstarter.com in Europe and the USA, boomstarter.ru and planeta.ru in the Russian-language part of the Internet) through which you can declare your project and ask for financial assistance, they will certainly offer the organizers to establish a reward for the participants.

Participation in the collection is rewarded in 3 (three) ways:

1. Gifts or prizes;
2. Obtaining a small stake in a business project for which money is being raised;
3. Getting a share of future profits or return on investment.

Who mainly uses fundraising through crowdfunding?

Most often, of course, money is raised to create music albums, filming, book publishing, social and charitable projects.

But, for example, in 2008, Barack Obama, notorious for everyone, gathered only at the first stage of his election campaign through crowdfunding more than $ 250,000.

4) Credit

As mentioned above, credit - One of the most undesirable types of financing for a new project.

This is explained by completely understandable reasons, namely: startup- enterprise with high risks, which are often difficult to calculate, it is also difficult to determine the level of profitability of the project.

Therefore, it is more logical to take a loan for the development of such a business at later stages, when these risks have already decreased and profitability has increased.

5) Business angel (obsolete Russian "patron")

This is the name of independent investors who invest personal funds in the very early stages of startup development and, on this basis, sometimes participate in project management.

At all, business angel - the dream of every startup. In addition to money, they also have professional experience in marketing and finance, and because of their interest in the success of the project, provide professional assistance at the stages of formation and early development.

But we must be aware that attracting a business angel at the first, most high-risk stages of project development will require transferring a large share of the business to its ownership.

If the ultimate goal of a startup is to sell a ready-made business, then there will be no problem. But in the event that the startup wants to continue to engage in his own business, then the relationship with the business angel and his share in the enterprise must be legally registered at the very beginning of cooperation.

In more detail about business investment, what investment methods exist, we wrote in a separate article.

6) State

As a rule, when thinking about finding a source of financing for his project, the entrepreneur lastly recalls the state and the support that it can provide in the development of his business.

Of course, there are reasons for this: the state, unfortunately, does not favor small entrepreneurs and start-ups with its attention, and to get material help from it, you need to make a lot of effort.

But for this very reason, at the very beginning, a team is formed in which everyone is engaged in his own business: someone is developing a product, someone is engaged in advertising and market research, and someone is concerned about the legalization of the matter and the issues of seeking financial support. Therefore, there is no need to give up the opportunity to receive the statutory subsidy.

So, what can the state offer as an aid to a young business project?

• Firstly, every citizen of Russia has the right to a free subsidy for the creation and development of his own business. There is no doubt that in order to receive a subsidy it will be necessary to provide a large number of documents, and after receiving the money - reports on their use. But if you take the matter seriously and believe in the result, then all these issues are completely resolved;
• Secondly, each region of the country is developing its own programs, or grants, to help small and medium-sized businesses, including start-ups specifically, especially if the project area meets the needs of local residents. You can get information about support programs for each region, for example, on the website of the Federal Portal of Small and Medium Enterprises (smb.gov.ru);
• third, state support may include the creation investment funds, technology parks, science city Skolkovo, and most interestingly within the framework of this article, is the state initiative to create incubators and accelerators for beginner businessmen.

7) Venture fund

Venture (from English venture- a risky business), that is, such funds specialize in investing in high-risk projectswhat startups are.

Venture capital funds invest their money depositors and partners. But, taking into account the risks of these investments, they often put forward very unfavorable conditions for startups.

Attracting a venture capital fund can help a developing startup at the stages of expansion and maturity, when a lot of investments are required, but there is already a profit and risks for investors have significantly decreased.

In this case, you can agree on conditions that will satisfy both the fund managers and the founders of the startup project.

There are at least 7 sources of financing startup projects. Each of these sources has its own nuances and is applicable only at certain stages of startup development.

The optimal amount of investment is business angels and venture capital funds. When concluding an agreement with them, careful preparation of a legal contract is required.

Tips for beginners on how to create your own startup project

5. How to create a startup - TOP 5 best tips for beginners

What to do to an active person who no not a lot of money, no good ideaand energy, experience and knowledge require a way out?

Practitioners (experts) argue that even if a person does not have the natural gift to give birth to ideas at every turn, then this ability can be educated in yourself, train.

And in fact, there is even a special theory of solving research problems, in abbreviated form TRIZ, allowing to control the process of the invention.

So, practical advice on creating startup projects:

Tip number 1. Plan and predict

All new products, services and technologies once were just only a fantasy. And they became a reality thanks to the courage of their creators.

Therefore, it is important to keep abreast of new products that appear regularly, especially in the field of information technology, and look forward to tomorrow.

Perhaps this is the direction of thought that will help to find a suitable idea that will become the basis for a future startup.

Tip number 2. Become a professional

Entrepreneurs Walked the Way from start-up to maturity, they say that it is better to enter the business, having experience in the selected field, albeit by an employee.

Insider trading - The best way to gain experience and professional skills in any field. And then apply this knowledge and skills in practice, developing your own business.

Moreover, there are such areas of activity, the specifics of which cannot simply be read on the Internet or to acquire knowledge about them in books.

And vice versaHaving experience working in a narrowly focused company (for example, medicine, sports, customs), you can create a completely unique product or service that is doomed to success.

Tip number 3. Solve problems in a new way.

Often, a new look at an old problem or some kind of imperfection helps to find an unexpected solution that will turn into a successful startup.

Example

Google at the time of creation was far from the first search engine on the Internet. But getting rid of advertising on the site and adding several useful features, the creators got a product that is now number one in the world among search engines.

Tip number 4. Improve service and product / service quality

Trying to improve services or products that already exist, you will not only find an idea for your own business, but also help people around you, users of this service or product. Actually, this is what really matters!

Tip number 5. Develop new markets and implement in your project

Large corporations, while developing, along the way create new markets, the development of which advanced businessmen direct their attention to.

A vivid example of such a business - Microsoft Corporation, which began with the creation and sale of home computer software created by MITS.

Find an idea to launch your own startup project not easy, but probably.

Revision of their own knowledge, skills, experience and a bold look into the future are the main assistants in this matter!

Best startup ideas in Russia

6. TOP 7 best startup ideas with minimal investment

The reader is offered several relevant ideas for creating your startup from scratch or a low investment threshold. So, how can you make money without having a lot of initial capital.

Idea 1. Create a Youtube channel

Do you have a rich imagination and a good camcorder? Then you have the opportunity to build your business by creating your own channel on Youtube and filling it with interesting video content.

The focus of the videos can be any (socially acceptable, of course), main condition - tointeresting quality video and constant control for the number of visits to the channel.

Additional income will bring advertising and affiliate program site. Read in more detail in the article - “How to make money on YouTube from scratch”, where we examined in detail how to create a channel, promote it and what methods of making money on YouTube exist.

The creation of:

• Master classes;
• Webinars;
• Video courses;
• and so on.

It is important to offer users (customers) the content that is in demand and necessary.

Idea 2. Online Store

The idea of ​​reselling products over the Internet has long been old. And with the increase in computer literacy of the population, especially in large cities, it has become difficult to find a buyer for consumer goods.

So now, to make money, you need to find and resell a product that is hard to find, but there is a demand for it. By the way, we wrote how to open an online store in our last issue.

The idea of ​​doing business with China is especially relevant, where the idea is to resell Chinese goods through web resources with a large mark-up on goods.

This also includes the idea of ​​creating an online store using the dropshipping system. What is dropshipping, what suppliers on this system exist, and how to build a business according to this scheme, we already wrote in the article.

Idea 3. Eco-friendly products

Find in a big city quality products that are not crammed with GMOs, flavors and palm oil, - impossible task. And the supply of products from ecologically clean areas, from the manufacturer, is becoming a popular service.

Find manufacturers, conclude contracts and think over issues of product delivery - not difficultbut not so simple either.

But with careful planning and consistent development, you can create a successful long-term project, since the demand for quality food will always exist!

Idea 4. Vending machines

Vending machines drinks, shoe cover and other relevant little things continues to be in demand until now.

Given the difference in the cost of the same drink in a cafe and in a vending machine, there is an opportunity to make a good profit. Provided, of course, maintaining the quality of the product. In more detail about the vending business and the types of vending machines, we wrote in one of our past publications.

Idea 5. Creating mobile applications

Using this idea as a basis for a startup implies that the entrepreneur has special skills.

But having these skills, a startup can sell them profitably, creating applications for smartphones. No investments, except their own time, hard work and taste.

Idea 6. Creating an online legal consultation

The essence of a startup is to provide legal services on the Internet (online) through various software (Skype, etc.). Lawyers and lawyers conduct remote consultations and give advice and recommendations in accordance with the legislation of the country.

Idea 7. Creation and resale of sites

The idea of ​​this startup project is to independently create a website or buy it on specialized exchanges (for example, through the telderi.ru exchange). Then the site is tested, edited according to all the necessary SEO parameters and sold to the client-buyer (through the exchange, through other web resources, in person, etc.)

Idea 8. Online translation agency

Experienced and competent translators of all the major languages ​​of the world (English, Spanish, etc.) are selected for this project, who can remotely translate texts and information from Internet resources in a short period of time.

Idea 9. Advertising Agency

The idea of ​​a startup is to provide advertising services on the Internet. In more detail about advertising on the Internet, we have already written in past publications.

Idea 10. Marketplace on the Internet

The meaning of such a startup project is to create a trading platform (bulletin board) on the Internet. It is possible to create a local web resource (for example, localization by region, city), where customers (users) will post their services and goods, and the start-up company will receive a certain percentage of paid placement (similar to Avito.ru, auto.ru and etc.)

Other dubious business ideas

A bad idea for a startup is everything that has appeared in the life of society thanks to fashion trends, it does not matter if they came from the East or from the West.

for exampleHookahs have become very popular establishments because of the low cost of their maintenance: you do not need a kitchen and workers are cooks, it is enough to make tea and smoke a hookah. But the fashion for them has passed, and business turned out to be unclaimed.

Another example from the same series - a store selling electronic cigarettes and related products. Having become fashionable very quickly, electronic cigarettes have also rapidly lost their popularity due to the harm they cause to health.

And finally, coach training... The fashion for coaching also began to take place, especially since there were so many of them, and they say the same thing.

Ideas for creating a startup can be found in any area of ​​life.

The main thing is not to follow the windy fashion, but build on on the fundamental needs of people.

7. Frequently Asked Questions

We will answer the questions asked by many novice entrepreneurs and Internet users.

Question 1. Startup - who is he and what are his functions?

Startups are each member of the team involved in the creation and development of a startup project, regardless of what function it performs in the team.

Question 2. Where to start the search for an investor and how to find him quickly?

As already mentioned in this article, the search for an investor must begin at the very beginning of the formation of a startup project, since this is not an easy task and can drag on.

Where to start the search?

Here are a few key points to keep in mind:

Moment 1. Investor choice

First of all, the startup himself must understand what kind of investor he needs: the one who simply invests for profit, or the one who can help not only financially, but also take part in the project management?

To deal with this issue, the owner of a startup project needs to present the final result: either it’s a sale of a finished business, or the continuation of work in the created enterprise. The choice of the type of investor and the conditions for cooperation with him depend on this result.

Moment 2. Originality of the idea

Offering the investor to invest money in the project, the startup should present it from the best side, that is, the potential investor should see the originality of the idea and a well-composed business plan to promote the product, service, technology on the market.

Moreover, the second is even more important, because no matter how original the idea, without a detailed plan of action, money for its development cannot be obtained. After all, any investor is aimed at making a profit, quick or long-term.

Moment 3. Presentation Design

Well, to help present the idea to the future investor correctly and beautifully, the presentation will help. The goal is to infect the investor with his faith in the necessity and prospects of the undertaking.

How to find an investor for a startup - 3 ways

Where and how to find an investor?

Are possible 3 ways to find an investor to open a business:

• Firstlyif a startup is fresh and is of social, scientific and social interest, then you can turn to crowdfunding platforms, which have already been mentioned here.
• Secondlyif a startup project has a serious scientific, informational, production or technological focus, it makes sense to turn to specialized sites and forums where not only general business issues are discussed, but potential investors are also present. They are also interested in finding profitable projects.
• Thirdly, you can contact directly through the sites and offices of investment and venture companies. As a rule, when implementing state programs to support private business, it is these companies that conduct seminars, conferences, competitions and exhibitions, where, in addition to information and advisory support, you can find future partners and investors.

Question 3. How to come up with a good idea for a startup project and bring it to life?

A good idea - this is where any successful startup starts. There are people who generate such ideas with enviable constancy.

But what about those who, having both the desire and the ability to start their own business, cannot decide on an idea?

Experienced startups recommend the following:

• An innovative idea must lie on the surface.. That is, it should be something ordinary, but imperfect. So imperfect or uncomfortable that you want to fix it and thereby help all the people whom this imperfection interferes with. Therefore, look closely at the everyday life surrounding you and notice everything that needs to be improved and corrected.
• Do not be afraid to fantasize! All the latest achievements were once fiction, science fiction and seemed a pipe dream. But it happened because someone was not afraid to turn a dream into reality.
• Write down any ideas and interesting thoughts., it doesn’t matter if you invented them yourself or heard from someone. And then try trying them on for real life. It is possible that this is the unique niche where you can apply your talents.
• If you feel that you have found something interesting, investigate your idea. Forums on the Internet, specialized sites on the problem, conversation with potential consumers will help to determine the relevance of the idea, its scope and direction of development.
• If an idea is found, and you are sure of its promise, then start acting: make a plan, look for helpers and like-minded and launch project to life. If you do not have sufficient funds even in the initial stages, try to save on everything you can, and look for investors for further development.
• Be confident in yourself and your strengths, optimistic and committed to success. There will be many difficulties along this path, but the result is worthy of being overcome.

8. Conclusion + video on the topic

Modern life is developing rapidly, which means there will always be more and more new ideas that deserve attention and development. And if there are ideas, then there are opportunities to apply your abilities and talents.

In conclusion, we suggest watching a video - “STARTUP SHOW by Dmitry POTAPENKO”, where young entrepreneurs present their start-up small business projects.

As well as a video, how an entrepreneur earned 17 million without investments:

You only need to believe in your strengths, and, starting with the small, gradually move forward to high results and achievements.

Dear readers of the Rich Pro website, if you have any questions or comments on the topic of publication, or if you want to share your experience in creating and promoting a startup, leave them in the comments below.

Watch the video: How To Write a Business Plan To Start Your Own Business (November 2024).