The world is full of opportunities. Have a new business, product, or service? That dream can be
made into reality. But a dream isn’t enough — 90% of startups around the world fail. Why? The
startup process is always complex. It requires creativity, resourcefulness and determination.
Getting the early stages of the startup right are crucial.
Need some advice on placing your idea in the best position possible for success? Let us guide
you.
Early-stage startup tips
Test the business model
The first action necessary to turn the big idea into reality is testing out a business model early in
the process. How does the startup intend to attract customers and generate revenue? That’s
the key question. The business model functions as a reference for early investors and potential
stakeholders who need to see a workable path towards profitability. This is the key guideline
for the team to keep in mind as they build the product.
Create a business model canvas
A business model canvas is used as a visualization instrument. It helps lay out key partners,
structures, channels, value propositions, and other business elements in a way that is easy to
comprehend. Using this model helps authenticate the value the product could bring to the
target audience and clearly define the business for interested parties. When preparing this
business model canvas, it’s vital to rely on a proven methodology to get an accurate
representation of how everything connects together.
Craft a product positioning statement
Being able to communicate what the product or service is clearly and quickly is critical. A
positioning statement helps to do that. Use a short formula that conveys value, breakthrough
capability, competitive differentiation and other key points all in three sentences or less.
Assess technical feasibility
It’s important to confirm that the idea is achievable from an engineering and production
standpoint.
Evaluate all aspects of proposed technical solutions. Get insights on how to build and adapt the
product while minimizing risks.
Use a virtual CTO
A virtual CTO is the perfect solution for an early-stage startup, to bridge the gap between the
company’s vision and the technology needed to achieve it. Working closely with the leadership
team, a Chief Technology Officer (CTO) scrutinizes the technical solutions the product’s team
may not be aware of and other possible technologies that could grow the business. Partnering
with a CTO also offers support in incorporating technology into the business strategy decisions
and creating customized approaches to fit the timeline.
Want to learn more about optimizing the early stages of your budding startup? Check out the
accompanying resource for further pointers.
Resources
https://555vcto.com/early-stage-startup-cto
https://www.ycombinator.com/library/En-what-is-a-startup
https://555vcto.com/business-model-canvas
Infographic created by 555vCTO, Trusted Business Model Canvas Consultant
