Category: Startup Tips

Introduction

A startup is a newly formed entity that offers specific products or services to the market. In other words, it is a company in its initial operational stages. Therefore, innovation is essential for every startup because it allows them to compete with other industries for market leadership. They generally start with a concept with high expenses and limited income but would eventually be focused on growing and scaling their business. Founders initially fund startups through family and friends, crowdfunding, angel investors, venture capitalists, IPOs, and loans.

All startup founders are looking for a real problem and solving those problems based on the potential customer or risk that can create business opportunities and impacts. They implement business plans to predict whether they are viable from the customer’s perspective. They also need good execution and tailored business applications to stay on top of things and successfully implement their business vision. Hence, the seven different types of startups are listed below.

IS YOUR COMPANY A STARTUP? What type of startup are you?

• Types of startups/companies: A startup must be incorporated as a Private Limited Company, Registered Partnership Firm, or Limited Liability Partnership.

• Age of the company: Its operational period should not exceed ten years from the date of incorporation.

• Original Entity: It is not permitted to split up or reconstruct an existing company in order to qualify as a startup.

• Annual turnover: Since its incorporation, the company shouldn’t have a yearly turnover of more than Rs.100 crore.

• Innovate/scalable: They should aim to innovate new products/services or have an expandable/scalable business model with high potential.

TYPES OF STARTUPS :

1. Lifestyle startups:

Lifestyle startups are the first type of startup. These Lifestyle startups are where entrepreneurs generate income by living the life they love. They are their bosses. That means they work for themselves by being passionate about their job. Lifestyle startups are generally freelancing graphic designers, web designers, and coders.

2. Small business startups:

Small Business startups are the second type of startup. Entrepreneurs who start small businesses want to build a long-lasting and sustainable business rather than earn huge profits or scale up. They run their business to feed their families and live comfortably with family and friends. Travel agents, bakers, plumbers, grocery store owners, and carpenters usually commence this startup. Since it is a small business startup, they don’t need a business-facing app but a responsive specialised app that can navigate, order and track the products/services a customer may want.

3. Scalable startups:

Scalable startups are the third type of startup. These startups are just born to be significant. From the word itself, we can understand that they are scalable. Generally, these startups continuously scale themselves without a traditional exit strategy. Scalable startups are suitable for those with the thorough market knowledge and capability to efficiently and effectively explore more market opportunities. They have the potential to keep increasing their revenue while keeping their incremental costs at a minimum. Most founders believe that their ideas and mission will change the world. These startups hire the best of the best and bright among the brightest. They used to look for more venture capitalist to magnify their businesses. Examples of scalable startups include Google, Facebook, Uber and Twitter.

4. Buyable startups:

Buyable startups are the fourth type of startup. Technology and software-based startups make up the majority of buyable startups. They are typically web and app-based startups. The main aim of such startups is not to grow or build a billion-dollar business but to sell to larger companies in exchange for a hefty profit. Entrepreneurs of buyable startups should have startup ideas with enormous growth potential. They are always trying to raise money for their start-ups by opting for crowdfunding and angel funding.

5. Large company startups:

Large businesses must continuously innovate due to the shifting environment. They are supposedly large-scale startups. These companies will have an infinite lifespan if they continue to innovate in response to new competition, changes in customer tastes and preferences, and technological advancement. They have the potential to become a driving force for more disruptive innovation. Google and Android are two such startups. New markets are responsible for engaging customers with the sales of new goods and services.

6. Social startups:

Social startups are the sixth type of startup. The purpose of social startups is not to create a sustainable business but to positively impact society and the economy. These startups aim to make the world a better place to live in. They are less passionate and ambitious about earning profits when compared to other founders. In short, they provide donations, grants and charities to build positive social and environmental change worldwide.

7. Offshoot startups:

Startups aren’t always possible from scratch. Offshoot startups are separated from more prominent or parent companies to establish their entities. They are self-explanatory startups.

STARTUP INDIA FOR ALL TYPES OF STARTUPS

Startup India is a scheme undertaken by the Government of India. Indian Prime Minister Narendra Modi launched the project on 16th January 2016. The project planned to generate a robust ecosystem for innovation and entrepreneurship in India, thereby facilitating economic growth and nationwide employment vacancies. The main goal of this initiative is to enable startups to grow through innovation and development and stimulate the spreading of the startup movement. The benefits of Startup India include easier compliance, easier IPR facilitation, speedy exit mechanism, simplification of work, financial support, tax exemptions, networking opportunities, and many more. The startup India has initiated several programs, and Department duly manages them for Industrial Policy and Promotion (DPIIT).

Launching a startup is the first step toward achieving entrepreneurial goals. It appears exciting, but it requires a lot of critical thinking and hard work. People start businesses because they want to be self-sufficient and confident. This article discusses the various types of startups and how they grow. There are different kinds of startups in India. Our other blogs contain more information about the best startups in India. Be sure to check it out!

Whether you are an entrepreneur planning to begin your startup journey; you might lack critical insights and knowledge to acquire business results. Therefore book a slot with our experts to discuss your startup ideas. Scaalex has worked with many food startups in India and its founders to validate Business ideas, Financial Modelling, Business plans and Investment advisory to scale up the startup. We ensure you get insightful consultation and validation with our domain experts.

If you are going to launch a new business, one of the first steps in the process is to validate startup idea. Before you do, you should get a clear understanding of exactly what you’re doing and what problems your new business will have to face. Therefore you should really consider launching your business based upon an idea that you can truly overcome. Some people start with the wrong concept or problem and simply look for a business idea that can solve that particularly. Here is an easy way to do it.

The first thing you need to do when researching your startup idea is to make a list of all the things that can be the challenges. Once when you finish, make a list of the most important characteristics that you would like to include on your business’ cards. Then check the list against each of the top tier one problems that you identified earlier. You may find that the social media cards may not be able to address the top tier one problems that you identified.

The next step is to use quantitative measurements in order to validate startup idea. When you are evaluating your idea, think about whether or not you will have enough data from which to work. If you have no knowledge in the area of social media, make sure that you know the conversion rates on the different social networks. If you do have experience, consider using some qualitative coding techniques to make your landing page more interesting and compelling.

The final step to validating the start up idea is to build a wire frame. This consists of creating visual representations of your business’s target market, product, and sales process. Wireframes should be easy for a website designer to understand. If a website designer isn’t able to follow the layout and navigation of your wireframe, he/she will need to ask for a re-design.

Now that you’ve done your analysis and a wireframe has been put together. So you will need to go back and validate that your ideas are profitable. Your goal with this step is to identify if you are solving a problem or attempting to sell a service. In order to successfully solve a problem you must identify and solve the problem. Selling a service requires you to identify, as well as, potential buyers.

Another important part of a validating the start up exercise is to go to market strategy planning. By doing this, you will be laying out a plan to generate leads and convert them into customers. This strategy planning may include pricing, branding, a logo, and/or a sales copy for your landing page.

Finally at the end of the testing and wire frame, is to go to-market planning. In this step, you will be setting goals and determining if your concept is actually solvable. If so you can then develop your landing page and start converting traffic into customers. Now you can begin increasing the monetary figure starting with the budget for your web design and development company.

By completing these steps, you can validate your startup idea. This will give you a greater chance to find problems and fix them before launching your product. Identifying the problems earlier, your idea will not only be profitable but also a huge success. These are just a few tips to help you get started on validating and pre launch landing page.

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Social Media Marketing has become a mandatory tool for companies looking to compete in today’s market. While it does help you communicate with your customers, many people ignore its importance and use it inefficiently. To build your company’s social media strategy, you must first understand its essence and how to effectively utilize it.

The Startup Checklist:

A plan that is effective and comprehensive. Social media is the core component of any business’ success but it can be easy to get distracted and make decisions on the fly, which may not be helpful in the end. So, before you begin building your company’s social media presence, do proper planning that would best suit your business needs. This list should include both the pros and cons of each option, as well as quantifiable data like demographics. Use this list as your guide in developing a comprehensive social media plan.

Choose Your Sites:

The best place to start when you want to know how to build your company’s social media presence is the basics of popular media sites. Find the most popular ones that are used by people you know and interact with, like Facebook, Twitter, and Linkedin . Moreover there is nothing wrong with taking things a step further and registering for the most popular ones (like Google’s) to give you a broader pool of target market to choose . Remember though that there is a right way and a wrong way to use these services. Always put customer needs ahead of personal goals and work on building trust with your audience.

Exfoliate Your Social Media Presence:

Social media marketing is all about building a presence and maintaining it .So before you move your account to the main stage make sure that all your accounts undergoes proper scrubbing clean of negative posts and comments. It is always wise to get an overview of what your competitors are doing in terms of media and can prepare to act faster than them. Do this by identifying which posts and comments have the greatest impact on your sales. Also take note of which ones bring in the most traffic as well. By doing this, you will be able to better improve your social media marketing strategy.

Work With Social Networking Sites:

If you do not have a lot of followers then it might be difficult to gain one but it doesn’t mean that you should avoid connecting with them. Many companies get in touch with their target audience using the various social networking sites. These sites includes Twitter, LinkedIn, Facebook etc. If you have a strong presence on any of these sites, it gives you the chance to interact with your customers, answer questions, and share valuable information. When you do this customers start to feel that you care more about them and are a legitimate company that is worth buying products from.

Partner With Experts:

Experts are great resources for helping you spread the word about your company. Since you are probably not someone who is good at creating content, hiring a content writer would help you out. In addition to creating content, experts can provide you with helpful tips on how to increase your traffic, how to drive up your rankings in search engines, how to become more accessible to your customers. The best way to approach experts is to ask for their help and give credit where it is due. By working with experts, you can save both time and money.

Use Social Media Marketing Services:

Using a professional can help you save both time and money. Hiring a social media consultant will save you time because they are able to guide you through entire process. You do not have to worry about understanding social media and trying to create the content yourself. They already understand the ins and outs of these online mediums and can guide you accordingly. Thus no need to worry about creating the right kind of content, driving traffic to your website, or marketing your company effectively.

Focus On Social Media Performance:

Although it may seem like a simple task, you need to know how to effectively use each social media platform. Each platform has its own purpose and features that your social media campaign must be geared towards the goals. Similarly you cannot simply post links to your website and hope that you will get people to click on them. Your content has to be rich in keywords and optimized for search engines. Moreover it has to be interesting and engaging so that it draws attention to your website.

How to start a subscription business for startups is the first step in starting a home-based business. The subscription business for startups generally has its roots in the beauty of a subscription. Women buy a high-priced beauty product every month for a set period of time. The subscriber, also called the carrier, pays a small fee each month, and then enjoys the beauty products without having to make a payment. This works for many women and it is the ideal way to start a home-based business that does not require much start-up capital.

Start up costs for subscriptions are relatively low compared to other business opportunities. The subscription business for startups can be started on a shoe-string budget compared to more traditional home-based businesses. A good way to save money on your subscription business for startups is to use the Internet to promote the products you are selling. Indeed you can advertise on social networking sites and message boards, or use other online advertising methods. There are many free ways to promote subscription products. You should try to use as many of these tools as you can.

Clearly the beauty of the subscription business for startups is that there is no capital required. All you need is a credit card or a personal computer with internet access. It is easy to start because the beauty of this business is that there are no subscriptions, which make the whole thing very easy to understand. Also the subscriber receives a beautiful product and the carrier doesn’t have to spend money.

One of the keys to marketing the business for startups is being easy to understand. If your subscribers don’t understand the concept of your business, they will not buy anything. The subscriber must be able to understand the system and how to subscribe. In the beginning, it may take some extra time to explain the subscription process, but after a while it will all come together and look much less confusing.

It is important to promote the business. You don’t want to start selling products to subscribers who have no interest in what you have to offer. When you start adding subscriptions to your business, you should have an affiliate page set up. This is where you can add the affiliate links for the products that you are selling.

Start with a list that is large: If you plan on making it big in this business, you are better off starting with a list of a few hundred. The more names that you can get on your list, the larger your profits will be. When you start with a list that is smaller than this, it will be harder to turn a profit. Instead of spending all your time trying to sell products to each person individually, focus your attention on growing your lists. This is an investment of your time that gets it reward in the long run.

Make sure your customer service is top notch: One way to learn how to start a subscription business is by how to build customer loyalty. This is a must. By building loyalty with customers, you will have fewer customers that cancel their subscriptions. A good subscriber base is one that will stay subscribed for a long time. As you build your business, make sure you keep your customer base satisfied.

Find out how to attract subscribers: One of the most important things that you should learn as you learn how to start a subscription business is the concept of subscriber acquisition. This is the process by which you gain new subscribers. You must learn to bring in new customers at an appropriate rate. There are several ways to do this, and you should consider each one. Once you find a method that works, you will be able to bring in subscribers at a steady clip.

Before starting a new business, you need to organize many things, and having a checklist during this time would be fully useful. Our startup checklist blog discusses six major checklists to consider while launching a startup.

To find a co-founder for startups can be a difficult process. Unfortunately, many businesses that get started are destined to fail, simply because there aren’t any good entrepreneurs to help them along the way. 

Fortunately, if you follow these 7 tips, you can increase the odds of finding someone to help you start your business and can find a co-founder easily.

1. Look for angel investors. Many angel investors are willing to invest in startups that have a strong business plan and a clear idea for the product or service they wish to provide. If you don’t already have some investors looking at your business, you may need to work hard to drum up business. You can do this by having an effective marketing strategy and developing a strong business plan.
2. Do your research. Research the competition before you invest in a startup. Look at their track records, their target market, and their strengths. By doing so, you can ensure that you will be able to compete with similar businesses in the future.
3. Find out what programs the competition uses. There are many government programs that provide small business grants. Find out what programs are available in your area, as well as those around the country. When you find several grants that seem like a good match for your business, you can ask for more information about how to apply for them.
4. Have an easy-to-navigate website. The website for your business should be user-friendly and easy to navigate. In addition to having a website, your website should include contact information and a blog. Having a blog will allow potential investors to keep in touch with you while having easy access to information will allow potential co-founders for startups to learn more about your business.
5. Look into existing businesses. Before you choose to co-found a business, it is important to find out what other businesses have done in the past. There are many websites that offer lists of businesses that have successfully gone. If there is a local business directory in your area, it may be helpful. Look for companies that have been around for at least five years, as well as smaller companies. If you have a few successful startups on your list, this can be a sign that these businesses are doing well and could be very lucrative.
6. Take a look at recommendations. Seek out advice from investors who are active in the startup community, as well as those who work with established businesses. A good co-founder for a new business has the skills and experience to draw investors. However, if they do not have recommendations, consider looking for them on your own.
7. Take risks. A risk-taking attitude is necessary when it comes to finding co-founders for startups. Many new businesses fail because the owners did not take risks. If you have already developed a business idea, find some ways to test it in the market, such as promoting the product using promotional items, giving away trial products, writing a press release, or attending an event. By taking risks, you will be able to find more potential customers.
8. Do not be afraid to ask for investment. Most investors are looking for companies with a good chance of success, but there are always exceptions. If you are willing to ask for investment, this may be your first step to seek private funding. Be prepared to provide a detailed business plan to your potential investors. Remember to provide financial information as well, so that your investors will have a good idea of your business’s future potential.
9. Be friendly. Startup companies look for people with a friendly attitude. Many people involved in the entrepreneurial world are perfectionists, so they can spot a potential leader if you are not. Be willing to accept help with aspects of your business, even if you do not need it.
10. Be sure to be persistent. It can take months or years to build up a successful startup. Persistence and determination are important qualities to keep in mind when pursuing new opportunities. If you try to close a deal too quickly or make sure that a certain company is included in your portfolio too early, you may risk losing a crucial investor as a result.

To find a co-founder for startups does not have to be a difficult process. If you follow these steps, you will likely find many different individuals who are willing to become part of your new business ownership structure. All these guide you to find a co-founder efficiently. If not, keep looking! There will be always investors out there who are searching for companies with which to invest. If you are persistent and responsible, they will eventually come calling on their own.

It is common for most startups to suffer some kind of funding issues, but this does not mean that due diligence for financing is a bad idea. You might think that due diligence is the same thing as getting a loan; however, there are several differences between the two. There is also the question of whether or not every startup should be looking for angel investors, as well as traditional banks or investors.

What is due diligence and why is it important for entrepreneurs? Well, for starters, when you have a new business, you need to make sure that you find customers. You need to do everything to maximize the amount of traffic that you are able to drive to your business. The best way to do this is to utilize every method that you can come up with in order to gain exposure on the internet. By doing this, you are creating a path towards generating revenue, and it is only a matter of time before your product starts selling.

One of the main reasons to use due diligence when you are trying to raise capital for your business is because it helps you to stay away from the common problems that could prevent you from raising capital. When you are working with a venture capitalist, there are some investors that will look at your business compared to their own business. They will consider your business’ viability. They will also look at the industry that you are in compared to other similar businesses. These things are at the “seed stage.”

After the seed stage, you will need to start bringing in revenue in order to move into the next phase. In the next phase, an entrepreneur has to start looking for venture capitalists in order to raise more capital. However, you will also have to perform all of your due diligence in to make sure that you are raising the right venture capital. This will also allow you to eliminate all of the small business risk factors that you are currently facing.

What Every Startup Needs to Know About Capital Flows is something every aspiring entrepreneur should know. Venture capitalists have been known to lose money, sometimes thousands of dollars, during each financing round. There is always a chance that they will see your business as not being viable enough for investment. If you are able to provide investors and a compelling pitch, they may end up writing you a check. However, there is also the risk that they will simply pass you by.

So, if you are a startup seeking venture financing, then you are going to need to do your due diligence. You need to gather information on the competition that you are up against. You need to find out how their business model is working out. If you can learn what their current issues are, then you can be prepared to address those issues before they arise.

Most importantly, you need to understand the venture that you are going into. As with any business venture, there are going to be risks involved. However, by planning carefully and being realistic, you can minimize the risks. As always, it is your responsibility to protect yourself and your future.

What Every Startup Needs to Know About Due Diligence is something every aspiring entrepreneur should know. However, this is one area where most new entrepreneurs fall short. When they seek venture capital, they fail to perform due diligence. Instead of doing this, they simply dive in headfirst without any sort of preparation. By failing to do proper due diligence, they leave themselves exposed to failure. This failure could cost them everything that they own, including their home and their businesses.

If you are looking for funding, here is some technique to get more financing from VC. You will get details on presenting your business plan and case for VC funding.

When a new entrepreneur is looking for ideas on how to validate your startup idea, the first thing he should do is to understand the difference between being valuated and funded. Money is generally the most straightforward way to move up the startup ladder as an entrepreneur. However investors are not willing to risk their money in your startup because of your likelihood of failure in the business. So, this would be your first big break as an entrepreneur. How do you go about getting funding for your startup idea?

When looking at potential funding sources, you mustn’t focus too much on the monetary rewards you can provide. It would be best if you highlighted the opportunity they have to help you validate your startup idea. For eg: if you want to obtain a loan from a venture capital firm, you need to highlight your business’s unique selling points. It would help if you showed potential lenders why your business would stand out from the rest. It is also important that you can prove that your business can produce significant profits shortly.

Another method of validating your startup ideas are by engaging different idea validation methods. The most popular ones include metrics, market surveys, interviews, and consumer opinions. By conducting these methods, you can prove to investors that you have a viable solution that solves a particular problem. While it may take some time before you can actually get a loan from venture capitalists but eventually you will get one. But, for now, you must start somewhere.

There is no question that there are risks involved in starting up your own business. So when looking at how to validate your startup ideas you must first weigh the costs and benefits of doing so. For instance: if your startup idea requires a significant amount of capital, you should find to secure a loan. It can be from angel investors or venture capitalists. Once you secure a loan, you will be able to focus on building your company.

However, before you can validate your startup, you must also create a valuation form to present it to potential investors. A valuation form should contain all of the information that venture capitalists are looking for. In addition to this, it should also show to potential lenders that your startup is viable. Also has an excellent chance of going through, and is likely to become successful soon.

You can obtain a valuation for your business right away. All you have to do is visit a local valuation company’s website and fill out a simple application. The valuation will provide you with several details regarding your business. The valuation will include the annual operating revenues, the market share percentage and your estimated cost to start the business. Likewise the cost of purchasing, advertising your business and the amount of time it would take you to recoup your investment.

If you do not have any experience selling products, it may help use a marketing agency’s services. Marketing agencies know which products are lucrative and which ones are not. Furthermore, they know that markets are more likely to want to purchase your startup. This is important because you don’t want to start a business in a field that doesn’t have a high demand. However, it is essential to realize that a good marketing agency will not guarantee a high valuation.

There are other ways of validating your startup idea. One way is to search the internet and check out what other similar businesses have done. Although you should not base your startup idea on what other successful companies have done, it is crucial to research the competition. Look at what they have done to get their start in business and do something different to make yours stand out. When you validate your startup idea by doing this research, you will more likely find that it is attractive to potential investors. By doing such research you will obtain a reasonable valuation and will allow you to raise the funds to launch your business.