Matt Blancarte dot Com Design - Business - Two Cents

Creating a startup business that grows to scale and success can be the most rewarding experience in your entrepreneurial career, but where do you start when you have little to no capital to get it off of the ground? There are several criteria that you need to cover, and challenges that you must overcome, prior to even considering making your first presentation to investors.

The Big Idea

So, you’ve got the world’s greatest idea for a business plan. You’re excited beyond belief because you are sure that THIS plan is going to be the one that puts you and your business on the map. These are a few questions that you need to immediately address.

• Is this concept remotely realistic (e.g. Flying Hover Car vs. E-Book)?
• If you went through with design and development, would anyone even want to spend their money on such an idea?
• Do your potential customers HAVE the extra money to spend on your product?
• Is their any real value in the idea?
• Would you purchase this idea for yourself?
• Would it support a scalable business?

At this point, if you can answer all of these questions affirmatively, you might be on to something.

Get the Ball Rolling

Now that you are on to something, it is time to begin forming the idea into a business model. You need to envision where this concept could realistically go in your mind. Is this something that could have 10,000 customers, or 1 million? How far are you looking to take this idea… and really where do you WANT it to go? This will give you an idea of how you should begin structuring your business model. There are crucial parts to getting the business going, here are a few things you must cover:

• Form a strong, efficient management team
• Begin DIGGING and SCRAPING for money
• Begin development of your idea
• Figure out how you will legally structure the company
• Create pertinent legal documents regarding shared equities in the company
• Begin setting goals for the company’s progress
• Begin dialogue with your potential customers. They are, after all, your lifeline!

Now we are ready for investors to sweep us off of our feet!!! right?

No, no, and… nope! You aren’t even close! Who wants to spend hundreds of thousands, if not millions, on nothing but an idea? Well, you MAY find someone (your rich family member, etc.), but chances are nobody with investing experience will look twice at you until you have several things READY to go.

• You have your product or concept ready to test (prototype stage).
• You are in step with your customers. They have heard and seen the idea… and they like it!
• You have received the necessary feedback to refine your idea.
• You have developed a strong, targeted marketing strategy.
• The money makes sense. You will be able to profit and re-coup your investors capital within a reasonable amount of time.
• You have developed your business plan in its entirety alongside a 20-30 minute presentation. You must rehearse and get the presentation PERFECT!

It’s in the bag!

Wait… not yet it isn’t. What I have told you is just the tip of the iceberg. You will be on a right path if you stick to these guidelines, but you must be able to execute properly. My next few articles are going to pertain to more specific concepts within this article. Good luck!