Startup economy is moving onwards and upwards with the establishment of a dozens of unicorns. This emergence in less than a decade indicates the significance of this economy. Therefore, the attraction of fledgling entrepreneurs toward building their startup empire is gaining more momentum than ever. Our experts reveal that the question most frequently asked to them is: How to build a startup from scratch?
This article enables you to unlock the secret of establishing your startup right from the very first step.
Identifying the Niche
Now that you have an idea which can make rounds in the market, the next aim is to specify the user persona. A persona is a hypothesis regarding the ideal customer. Your product should target a particular niche instead of trying to find a good fit for all.
There are products and services targeting many kinds of customers. However, you must be sure if the users need it or not. For instance, if you intend to introduce a messaging app similar to Whatsapp, your marketing and design efforts should aim to suit the age of 18-34 years.
The reason is the fact that over 42% of adults between 25-34 years of age in the US use Whatsapp. Besides, almost the same percentage of those between 18-24 years also uses it. However, the app is less popular among senior citizens with fewer than 10% of them using it.
Specifying the Scope
Scores of notable ideas fail to meet their potential due to vague scope. Before beginning to build software apps or requisite infrastructure, you must have a clearly-crafted business model.
Such a model serves as a blueprint for targeted industries and revenue streams. For instance, food delivery startups including Grubhub, DoorDash, and Foodpanda target restaurant industry. Besides, they attain revenues through a commission from every order and sponsorship from restaurants.
The scope also refers to the amount of details ingrained in a business-specific mobile app. Some food delivery apps offer search queries based on restaurants only. Others allow searching menu of various food outlets as well.
Generating funds is not an essential step toward building a startup from scratch. The startup aspirants who can afford the expenses all by themselves may skip this step.
Nevertheless, one should acquire funds if the idea is a unique and attractive one. Not only the investments but crowdfunding is also possible if your idea carries enough potential.
There are various ways of accessing funding. Seed funding is the most appropriate one to head-start your startup. Under this approach, the investor pushes a small amount of money in a startup while acquiring equity in return. Seed capital occurs at a stage prior to startup development.
Angel investment is the stage where investors buy stocks while the development is underway. This investment round also provides small capital but relatively bigger than seed money.
Series A funding mostly occurs when a startup begins generating revenue. The investors push more money with increasing revenues under subsequent financing rounds including Series B and Series C. The magnitude of funds increases significantly amounting to millions of dollars during series funding.
Building a startup requires subject-matter expertise
While you plan to build your startup, it is notable building it requires subject-matter experts at many stages. You might leave no stone unturned in one area, but success of startup requires perfection in all domains.
Nevertheless, you can still own a startup by partnering or hiring the appropriate experts. Any business initiative passes through the following stages before turning into revenue generating engine.
Apart from planning in terms of identification and specification of niche and scope respectively, it involves specifying mobile app scope. The more the details you intend to integrate into the app, the greater will be the net cost.
You should ensure to incorporate the most crucial features first followed by secondary ones. This strategy will enable you to integrate the vital features while remaining inside the budget.
The selection of a suitable developer is a challenging task. Try searching for one on Google or other search engines and you will receive thousands of results. However, you can tell apart an effective developer from an inefficient one.
Read more about choosing a developer here.
The development of the app should ensure the highest level of performance and data security. A high performing app is the one which never crashes and responds to users’ command in the least possible time. Any app taking excessive time annoys the users prompting them to quit using it. Moreover, undesired feedback by user keeps other smartphone owners from downloading it.
Data security is one of the primary concerns of users owing to the increasing rate of breaches. Your app should provide multiple levels of encryption to prevent malicious attempts on data integrity.
Testing and deployment prior to launching a startup
First outlook and experience of a service or product decide if it is going to be successful or not. Thus, it is advisable to test it in various environments. An app running seamlessly on one mobile device may not work well on another.
Extensive testing should also include putting unusual load on the app to evaluate its performance under times of high demand.
An appropriate strategy for deployment of app requires registering a limited number of users. Each user must know that the app is still under evaluation phase to prevent them from sharing public feedback.
Marketing and promotional strategies lie at the core of any business plan. Starting a startup company requires robust marketing by utilizing a wide range of productive channels.
The choice of marketing channels depends on the kind of your startup. Social media provides the opportunity to promote business among almost all kinds of demographics. Print media including newspapers, magazines, and brochures are effective. The ads on search engines are also highly productive.
The realization of your startup idea is only a step away. Contact us today so that we can assist you in building a startup.