The world is full of opportunities. Have a new business, product, or service? That dream can be made into reality. But a dream isn’t enough — 90% of startups around the world fail. Why? The startup process is a complex undertaking. It requires creativity, resourcefulness and determination. Optimizing the early stages of the startup are extremely important to its future success.
Need some advice on placing your idea in the best position possible for success? Let us help you.
Early-stage startup tips
Test the business model
The first consideration in turning the big idea into reality is testing out a business model early in the process. The key question is: How does the startup intend to attract customers and generate revenue? The business model functions as a reference point for early investors and potential stakeholders who need to see a feasible path forward toward profitability. This is the key principle for the team to be aware of as they build the product.
Create a business model canvas
A business model canvas is used as a visualization tool. It helps lay out key partners, structures, channels, value propositions, and other business elements in a way that is simple to understand. Using this model helps substantiate the value the product could bring to the target audience and clearly define the business for interested parties. When preparing this business model canvas, it’s important to rely on a proven methodology to get an accurate representation of how everything connects.
Craft a product positioning statement
Being able to communicate what the product or service is clearly and quickly is crucial. A positioning statement helps to do that. Use a short formula that quickly conveys value, breakthrough capability, competitive differentiation and other key points all in three sentences or less.
Assess technical feasibility
It’s important to verify that the idea is achievable from an engineering and production standpoint.
Evaluate all aspects of proposed technical solutions. Get insights on how to build and adapt the product while minimizing risks.
Use a virtual CTO
A virtual CTO is the perfect answer for an early-stage startup, to bridge the gap between the company’s vision and the technology needed to achieve it. Working closely with the leadership team, a Chief Technology Officer (CTO) investigates the technical solutions the product’s team may not be aware of and other possible technologies that could grow the business. Partnering with a CTO also offers support in incorporating technology into the business strategy decisions and creating a custom approach to fit the timeline.
Want to learn more about optimizing the early stages of your budding startup? Check out the accompanying resource for further pointers.
Resources
https://555vcto.com/early-stage-startup-cto
https://www.ycombinator.com/library/En-what-is-a-startup
https://555vcto.com/business-model-canvas
;;Infographic created by 555vCTO, Offering Expert Advisory and CTO Services