Taking an idea and turning it into reality is a long and challenging process that includes dealing with issues that young entrepreneurs have not yet dealt with. Investigating the market and the competition, building a business model and defining the product are only part of those issues that entrepreneurs need to address in their attempt to bring their product to the market. Targo provides a complete solution for entrepreneurs at the idea stage, which aims to bring the project to the development stage.
Steps in building the start-up
Testing the Feasibility of the Idea
The first step that an entrepreneur needs to make is feasibility check. This check includes a thorough study of the market and the competitors, during which three main questions are answered:
- Who are the competitors and how is the product better?
- What is the size of the market?
- Is the economic unit positive?
Answering these questions will determine the attractiveness of the venture to the investor and whether the competitive advantage of the product is substantial enough for the consumer to forgo their current product and consume the venture’s product or service. . The feasibility test must be executed before you begin to spend time or money in the project to understand the chances of success.
Building the Plan
The next step in the process is building a business plan. At this stage the implementation of the product is set out in detail as well as how this plan will yield returns to the investors. The business plan answers the following questions:
- What is the MVP – the most basic version of the product that provide the main value to the customer?
- Who is the Target Audience for the product/service?
- How will the company earn money?
- What is the Go-To-Market plan?
- What is the exit strategy of the company?
- How much money does the company need to raise in the first stage and what milestones will be achieved?
- What are the forecasts of revenues and expenses for the next four years?
Supporting materials for Fundraising Process
Once the team has been assembled and the business plan has been formulated, you are ready to begin the fundraising process and contact the investors. The appeal is usually made through a One Pager – a short document that includes the essence of the project and is used as the “resume” of the project. The reason for this kind of approach is that no investor will read the business plan in the first stage of approaching him and will want to understand as quickly as possible whether the project interests him by reading only a few lines.
Presentation for the Investors
When meeting with the investors, the company is usually presented using a Pitch Deck presentation. The purpose of the presentation is to visualize the project and its potential in a convenient, efficient and clear manner and include images and/or demos of the product or service, a summary of the business plan and short-term milestones.
Once the professional business plan has been built, it is time to assemble the team. This is the most critical stage, since the future of the project depends on the people who manage it. Every startup must have a team member on the technological side, and certainly when it comes to a venture with a complex technological aspect. The optimal composition of a team is a Chief Technology Officer (CTO), a Chief Executive Officer (CEO) (may also have a technological background) and a Chief Marketing Officer (CMO) who is familiar with the business environment of the market in which the venture operates.
Build an MVP and raise investment
One of the biggest mistakes of entrepreneurs is to wait for funding to begin development. It is important to know that the fundraising process takes several months. Meanwhile the team can begin the development process even part-time on weekends. You should start your development before you contact investors because investing in a team that works is much more attractive than investing in an idea. Even if the team invests a few hours a week and is in the initial stages of development, the investor is talking to people who have already learned to work together and are more likely to overcome the challenges ahead.