How to start a startup: 6 steps to success

Launching a startup is taking a leap of faith. You’re trusting in your idea, your abilities, and your perseverance to see through a personal dream of yours. If you’re starting a startup with partners, you’re also putting relationships to the test, because businesses demand a great deal from their collaborators.Of course, you know all this. You’ve already decided you can do it and you’re going to see it through all the way. The question then, is, how should you get started?In this blog post on how to start a startup, let us walk you through the steps you need to take after landing that leap of faith. Learn about planning, funding, networking, and marketing. Start your startup the right way. 

There is no successful business without a good business plan. At the beginning stages of your startup, you want to develop a clear and structured layout of your goals, methods, and projections. You will likely present this to investors and other interested parties who can help you on your way to success, so crafting the right kind of business plan is crucial.When developing your business plan, there are a few things to take into account. First of all, which kind of plan will work best for your startup? There are two categories into which business plans fall.

The traditional model for a business plan is most popular because it is the more thorough of the two. It will require more work, but you will end up with a comprehensive and detailed plan.Traditional business plans usually include:

The lean startup model is preferable for those who wish to get their business idea off the ground quickly. It also works well for anyone who may need to change their business plan regularly, for example if you are in a highly fluctuating market or are adding different services your company will provide.By the way: If you’re still struggling to find the next big innovation to build your business around, learn more in our article on how to find a business idea.Lean startup plans often include: 

Once you have put together a suitable business plan, you can better approach securing funding for your new business. It’s important to have a clearly laid out plan at this stage because this is when you will begin to present your business to others. Secure funding by tackling it from different angles.

This method isn’t likely to cover all your costs, so you shouldn’t expect it to. Self-funding means pooling together what you can put towards your business venture without causing problems for yourself. You can also approach family and friends under the self-funding model. Just always make sure you are never spending more than you can afford. 

Again, this is something you need to be careful about. Venture capital can be very useful especially at the early stages of business foundation. But there are things to be wary about, too.First, understanding venture capital investing: Venture capital differs from investment funding because there is no specific return expected on the investment made by the venture capitalist (e.g. interest rate). They buy shares in your company in exchange for an active role, like a seat on the board of directors or influence over future decisions.If you’re considering seeking venture capital investing, research venture capital firms and speak with potential investors to understand who you’re getting involved with your company. Present your business plan and make sure you’re clear about what kind of role the venture capitalist plans to play in your business.Finally, you should be wary of venture capital for a few reasons: 

Unlike venture capital, a small business loan will allow you to retain full control over your business decisions. Your only obligation will be a financial one, to of course pay off the loan.Secure a business loan by surveying the options in your region. Look for firms with government backing and excellent professional credentials. Then, decide on the kind of payment plan you feel comfortable with based on your financial projections, and weigh it up against your other modes of securing funding. There are many grants and loan options offered in Germany, some of which are offered by major banking institutions and government institutions. This list of startup grants from I Am Expat offers a comprehensive overview of the many options for entrepreneurs in Germany. 

Financing can also be simple! Qonto offers business loans suited to your needs.

With a solid business plan and financial backing in place, you can begin to build your network. It  helps to have these two things sorted first because when networking, interested parties will want an intimate portrait of your business—and concrete evidence of a strong beginning. So when you meet someone who takes a genuine interest, you can immediately convince them they would do well to get involved with you. Find the right people by networking widely, both in physical spaces and online. 

Since the pandemic, online networking has undergone a swift and massive overhaul. There are more events now than ever, physical events are always equipped with options for people to attend remotely, and just about everyone has gotten used to talking over each other in Zoom calls. There’s really no excuse for not leveraging online communities in today’s world. It’s easy and natural and you can do it all from your bedroom or favourite cafe. Here are some of the online channels you can hit up to start networking the easy way: 

Putting aside all our rapturous praise for the possibilities of online networking—don’t limit yourself to your laptop. Networking in person may take more time and require more resources, but if you expend the effort intelligently you’ll see better returns. Close your laptop and get out there. Now that things are opening back up, people are starved for in-person interaction and this includes the working world. Try these methods to maximise your rewards for changing out of your sweatpants:

This point is going to be specific to the country in which you practice business, because different legal requirements apply for business owners depending on the region. When investigating these requirements, take advantage of the following resources: 

Once you’ve surveyed these resources, approach them with the following questions in mind:

Setting up your workspace means two things: arranging where you physically stay to do your work, and what potential clients see when they visit your website. Putting these together properly means different things for each, so it’s best to approach them separately. 

Where do you like to work and what do you need in order to do your work? These are the two overarching questions which ought to drive your quest to find the perfect physical space from which to work. Many factors will influence your decision:

While your website is important, this doesn’t encompass your online space. Think of your digital space more metaphorically: it is a public presentation of you via your business. Everything you do under your brand should be done with consideration of your reputation. Instead of merely inhabiting your digital space, you embody it. Ask yourself these questions when crafting your online presence: 

Your marketing plan is closely connected to your online space. Think of them in the same way (how do I want to communicate what my brand represents) but with results in mind: what kind of results will I see based on my efforts to establish my online presence?To help you begin to funnel your digital brand into actionable marketing techniques, let’s go over a few of the major marketing styles which may or may not be suitable for your brand: 

Interruptive, costly, memorable, and historically popular, traditional advertising may show a downward trend in recent years, but used sparingly it can be very effective. Traditional advertising channels include: 

The wave of the future, digital advertising is disruptive where traditional advertising is interruptive. More cost effective and easier to implement as a small business owner, the digital advertising space is nonetheless competitive and more difficult to stand out than a costly mass media advertising campaign. Methods include:

Once you’ve chosen your advertising methods (preferably a mix of the two if possible), it’s time to draw up a marketing plan. Like putting together a business plan, your marketing plan will include financial projections, goals, potential setbacks, and business growth plans. However in this case, your calculations based on these categories will be strictly related to marketing:

There’s a lot to do after the bolt of lightning strikes you with inspiration for a startup. You’ll have to temper your electric excitement so you can soberly consider how to proceed with your idea. The idea behind this blog post has been to provide a roadmap for how to start a startup, assisting you in considering the most important things and asking you questions that get your thinking about your approach. Ultimately, your startup success comes down to you—but that doesn’t mean you shouldn’t take all the help you can get.