Michigan entrepreneurs considering making a bold business move with a fresh startup may be looking for guidance regarding how to effectively assemble and launch such a venture. Business planning is an essential component in effectively adapting and growing during periods of uncertainty, but the seeds of success are sown early on in the initial stages.
No one person or company has yet to crack the code in forming a successful startup, but a few tried-and-true options exist that can increase the likelihood of attaining growth and stability. Before weighing funding options, however, it’s worth ensuring that the vision behind the startup is solidly formed: What fundamental problem will the startup solve? Who is the target demographic, and how will the new venture reach out to it? Lastly, but certainly not least, is the consideration of the startup’s core team, which can make or break a new enterprise.
In the digital age, funding a startup has become easier in some ways; no longer do entrepreneurs have to depend on family and friends for financial support or empty their life savings for one chance at fulfilling their dreams. Accelerator programs, while competitive, are popular and reputable. Investment sizes range from $21,000 to $120,000 for accelerators in the U.S., and most accept applicants twice per year, so making use of these requires some advance planning as well as a solid pitch; after all, out of thousands of applicants, less than 20 startups are typically accepted.
An alternative to funding a startup with an accelerator program is outsourcing the development of one’s minimum viable product over the course of a few months with a relatively small investment culled from one’s savings, personal loans and a line of credit. This option confers several possible benefits, from retaining equity to ensuring cost-effectiveness and having access to an experienced team. Regardless of the route prospective startup owners take to launch their ventures, the legal details should not be overlooked. An attorney with experience in business formation and planning could ensure the new enterprise’s regulatory compliance, help draft sound incorporation documents and help facilitate any mergers or acquisitions that may occur down the road.
Source: Entrepreneur, “The Many Paths to Starting a Startup (Infographic)“, Geoff Weiss, December 19, 2014