Introduction to startup in India
So you are thinking of starting a startup? Well, That’s a great initiative!
If you see any developed nation in the world and question them what factors made them as developed nations in 21 century.
Then the answer will be Technology and innovation.
The better the nation uses Technology and innovation, the faster the nation grows.
That’s when a particular nation needs new startups and entrepreneurs.
Many people have great ideas in their mind before going to sleep, but very less percentage of them are really thinking to do some actions in the morning to make their idea alive.
Most people don’t take actions on their ideas because of fear of failure, lack knowledge, proper guidance and mentorship.
So in this blog post, I will guide and also provide you with actionable steps that help you to convert your idea into a startup.
First of all, understand the difference between a startup and a small business.
What is startup
The startup is a newly formed company with one or more entrepreneurs involved in it as co-founders.
They come with a motive to solve a major problem in the market by building a new and unique product or services.
Example: Ola, Oyo, RedBus, Paytm, zomato, swiggy. Flipkart, Etc.
Their main focus is to provide a Smart Solution to the customer,
For customers who like to buy clothes online.
startups provide customized clothes online by setting up a website or app. With lesser price and deliver to the buyer address directly in no time.
Once a startup makes good trust by solving customer problems, Start-up founders can make good profits in the coming time
Startup founders majorly depend on angel investors and venture capitalists for funding.
Startups design their product to sell for a larger market and grow faster exponentially.
What is a small business
It is a privately owned company with less than 500 employees
Example1: opening a clothing showroom inside the city with 10 employes.
Example2: restaurant with a couple of employees.
While Small business targets to maximize the profits for the owner from the existing business model without much risk.
In this case, when Small business owners sell clothes to the customer based on buyer requirements.
It generates a reasonable profit margin to the owner from day one.
small business owners, they depend on personal savings and bank loans.
How to start a startup from scratch
If you see a list of Top 10 innovative startups in the world over all-time.
Then apple, amazon, alibaba.com Facebook, Microsoft, and many other successful startups come in the list.
initially, their journey started by working on the idea by themself or in some cases they took the help of their friends who eventually become co-founders of the company.
And the ware doing all the work by themselves in the early stages. Once founders saw good results and feel this is going to work out then they expanded their startup.
All these successful startups founders have one thing in common that is
A very crystal clear why, (purpose) reason they started
Step 1: Start with WHY
Bill gates Gates founded Microsoft with Paul Allen in 1975.
Bill Gates had a vision and believed if we give right tools for people, and make them more productive then they have an opportunity to achieve real potential and he imagined a world with “A PC in every home and on every desk,”
So because of this reason (why) they made his vision achievable with tools like ms word, XL, PowerPoint with Windows operating system.
In 1971 steve jobs and Steve Wozniak invented Blue Box. People use this device to hack the telephone system to give people the ability to avoid paying long-distance rates on their phone bills.
1970’s phone bills ware expensive, and few telephone company were playing monopoly by collecting high prices.
Steve Jobs wanted each and every individual to experience the power and freedom in avoiding to pay the high bill for the phone call. Even it is illegal.
After co-founding apple
They wanted to do the same with a personal computer in 1970 there is no personal computer
In 1970 very fewer people saw a computer and only rich and corporate companies have access to it.
” Apple gave an individual the power to do the same things as any company,”
It designed an apple computer 1 and apple computer 2 not only fit corporate but for individuals, artists, for teachers, and other working professionals.
Another Indian example: (Mukesh Ambani)
4 years ago( 2016) in India before the entry of Jio in telecom industry how Airtel, Vodaphone and idea used to play monopoly by collect high date charges like 399,299 rupees per 1GB
After Jio entry into the market, we get the same 1GB for 10 rupees or even cheaper.
So this is one reason why we need startups to our nation.
From all these examples we can learn that all these people first provide great value (problem-solving product) to customers
After some time they started earning huge amount of money
But didn’t start only to make money.
They had a purpose with Bigger and stronger why.
Step 2: Start taking small actions
Amazon starts as an online bookselling platform in 1994
And founder Jeff Bezos.
Paytm started with mobile recharging platform.
Zomato started as a restaurant search platform through their website.
Step 3: Coming up with the Startup Idea.
“Everything that can be invented has been invented” in the real world, no business has a patent
today or no business idea is playing a monopoly in the market.
All have competitors, copycats, and imitators.
So it’s not mandatory to come up with a completely new idea, but you need to have a unique selling point [USP] that help you build a unique story around your business. Which helps create a stable and strong brand.
in research shown that the percentage of new idea failure rate is more than 50 %
while the companies that started second had less than 10 % failure rate
since there nothing called the original idea
today everything is developed based on the existing idea but redesigned and structured based on the requirement.
write down all your passions and interests
These are my interests
2. Reading Books
starting a startup that you are passionate about helps you to open your mind and put your heart soul into the work.
Identify a problem around your interest.
problems around my interests are
When I travel to another city
Problem 1. I don’t find good hotels to stay at affordable prices.
come up with a solution
Here’s how Oyo came up with the solution for the same problem
Ritesh Agarwal is the startup founder of India’s biggest hotel chain OYO
He did not have any idea or interest in the hotel industry.
He loves travelling and started travelling to different places, and that allowed him to stay in different kinds of hotels and tasted terrible experiences while staying in hotels.
He realized that there is a big problem that travellers face when it comes to staying in hotels.
Ritesh Agarwal, the founder of Oyo rooms, started thinking about the solution. In 2012 he started a website named Oravel.com( oravel stay Pvt ltd) in new Delhi and partnered with some unpopular hotels.
With a small investment, he made some modifications in the hotel interior by adding wifi, AC, clean bed, bedsheet, and washroom, .and he tested hid business model without a big investment.
Step 4: Tell your idea to everyone.
Do most students and professionals tell that l have a startup idea and if we ask them what it is. They tell.
I can’t tell that. Others may steal.
In most cases, this approach is not going to help you.
Especially When your idea is half cooked, it is best to share your idea with everyone who listens to it.
We never know which person is going to help you in the process.
Step 5: Choosing a business model
He made mission To create a great living space for common mam
For that, he selected unpopular hotels and the common man who travels
With the help of his website and app, he connected them he solved
Common man and hotel owners problem.
Step 6: Developing a product or service
In the Oyo case, he provided service through the website and app.
He doesn’t build any hotel (physical product )
Product: what I am going to offer
Any startup or small business can offer value to customers in three ways
product: which we can touch and feel, e.g., clothes, hardware
Service: which cant touch, e.g., software, Education.
Combination of both service and product, e.g. a laptop with hardware and software installed inside it
In Oyo, he is providing service.
If you want to develop a physical product like travel bags, t-shirts, shoes, belts.
Outsource the product.
Manufacturing factories produce bulk products at a single time without printing names or logo on them. When we talk to them based on our requirements, they add our name and logo in the labels and give us our brand name.
Steve Jobs said customers didn’t know what they want until he showed it to them.
observing cost more behaviour and need to start developing your product
Ie: those who brought the new car in the last six months are those who own a dog
take inspiration and get started
place: where can customers find my product
If you’re offering products that related to service as Oyo offers put online with a website or app
If it is related to physical products, build retail stores offline.
Promotion: How will my customers know about our product
promotion is an essential part that decides your startup growth.
If people don’t know about your product, how will they buy it?
Here many marketing strategies are used to promote a product
Most successful startups develop their product put pricings either cheap or expensive.
Cheep category eg: ola Oyo Xiaomi.
Expensive category eg: tesla, apple.
Step 7:Creating a Brand
Based on your vision and story around the product build a unique logo with tagline
Have one Message like
Atm Nahi Paytm Karo:
Use different music and voice tone.
Picking a name
Oyo name was oravel stay with time they renamed to Oyo
Foodiebay renamed as zomato
Easy to remember
Don’t spend weeks and months to decide it.
In the beginning, it is not required
Once your brand gets a good response, and you feel this is the time we need to scale
Then you register the trademark and protect your brand intellectual property.
Register .com domain
Building your website
The website is a virtual office for your startup.
So chose the best Theme and colors that look professional.
Add email, phone no, and display your product with Payment gateway.
Create offers, images, illustrations to understand easily
Step 8:Find your first customer
Use Facebook ads, Google ads, Instagram, Email marketing to promote your product
Step 9: Scaling your startup
Register your company as a Pvt Ltd.
open separate current account for company
Use crowdfunding to scale.
You need to build a great team of employees co-founders and managers of different departments to support in all aspects of a startup.
finding the right mentor
a person who runs a successful business that is similar to your product
ask interesting questions
What are the things you tried and didn’t work? why they don’t work
What do you wish you had done from day one?
What changes did you make to your product in the coming time?
what books and blogs should I read
In your early stage of startup due to lack of experience, we make mistakes that lead in getting the bad result but with customer feedback, and continuous updating we can provide what customer exactly needed
That helps us stay focused and committed to one project, and that builds a great ability to keep thinking about one thing at a time.
Because in today’s information age we ware spammed with a lot of information in our head that distract us easily