Things You Should Know When Starting a Start-up
By Baxter Jacinto and Aldrin Tirones
It’s a thrill when you’ve finally decided to become an entrepreneur. At this point, you should know that you’ll be experiencing moments of suspense, anxiety and frustration along the way. For sure it will be no easy task. Here are some things that you will need to realize when putting up your own business.
8. Availability of your business name
Before you even start planning, you should find out if that witty business name that’s been rolling around in your head has already been taken. You can check for yourself at the Department of Trade and Industry (DTI). The good news is that you don’t have to physically be there, you can do it online via their site.
7. Figure out what you have to relinquish
Yes, starting a business will require a pound of flesh. Anticipating this may save you from being surprised at whatever misery comes along the way. Stretch that smile a little wider now.
6. Are you just romanticizing?
We all dream of having our own start-ups but, for most, it usually stops there. Be honest to yourself, are you just fantasizing and being romantic about the thought of having a business? Or is it truly an obsession that compels you to turn it into a reality?
5. Source of capital
You need money as fuel to launch your start-up. Passion and ideas alone won’t get you anywhere. There are a lot of business ideas out there but they all share a common problem—funding. Do you have friends who are willing to support you? Can your parents lend you money? Are you planning to loan from the bank? Do you know any angel investors you can pitch to?
The source of your capital is a major headache which can discourage you from going further. Trim down the list of all potential investors and save it for later use.
4. Balancing it with your day job
A cardinal rule is to never quit your day job and jump straight to your venture. Instead, learn how to balance your day job and your start-up. When you are finally convinced that it’s time to quit your day job, ask yourself first: can I survive for a year without a steady income? Then, these: Do you have a family to feed? Do you help your parents out?
3. Finding the right timing
You have to study the market and ask yourself: is there actually a demand for this service or product right now? If your answer is yes then proceed. If your answer is no then ask this next question: how can I create a “need” for this service or product?
Sometimes it’s just really about the timing, but there are also other times that it’s all about how you market it to your target consumer—you create the timing.
2. Your prospective team
Are you going solo? Can you afford to go solo? A start-up only truly becomes successful based on its pioneering team. Yes, a team. Not just you. It’s tempting to be a micromanager, but sooner or later you’ll have to fire yourself from certain roles because someone else can do it better.
Finding the right team is hard and it will take a lot of time. What’s crucial is that you have to know how to present your idea and vision to your prospects—you have to infect them with your idea to compel them to join you.
1. Scrutinize your idea again and again
Do extensive research about your business idea. Your idea isn’t new—other people have probably thought about it, just in another shape and form.
Find existing businesses that are similar to your business idea and study them one by one. Find loopholes in their business model—marketing approach and such; basically, any cracks in their parchment curtain that you can take advantage of and turn into your unique selling point.
Got any other advice for those planning to launch their start-up? Share some wisdom below!