a) You are targetting a new or underserved niche market. Old or saturated market means a lot of powerful competitors fighting for same customers.
b) You will be providing a new, cheap or better solution than existing ones. If not why will anyone buy your solution?
c) Using new distribution channels to provide solutions more efficiently( e.g., bookmyshow, IRCTC use internet to distribute movie and railway tickets)
d) There is demand of your solution in market.
e) The idea is feasible(you have or can arrange the capital, man power and technical/business skills to implement your idea)
f) Your idea is profitable. i.e. You earn more than you expend.
Think about your idea, take feedback about it from others in your social circle, improve and finalize it.
2. Startup Team/ Board of Advisors – The next logical step will be to look for co-founders who can compliment to your skills and are as enthusiastic about your idea as you are. It is good to have a technology geek, a design expert and a marketing guy in your team. Also, form a board of advisors (experienced industry experts who will share their advice when needed).
3. Create a business plan – a detailed one for your own use and a short customized one if needed for raising capital. Remember that a good plan is one that is flexible to change coz most of the time it will be never done exactly as planned.
4. Develop Product prototype(if hardware product) or beta version(if software) of your product (If possible in garage. :p).
5. Register your company. Hire a Charted Accountant and he will do it for you.
6. Protect your assets using copyright, trademarks and patents.
7. Create your online presence. Get a website, online demo, blog and use social networks to promote awareness about your product/offers.
8. Raise capital for your business if neededfrom Angel Investors, VCs or events like proto.in. Its better if you can do without external funding. Just bootstrap your startup.
9. Setup office cum development center. Try to do it in minimum possible investment. Take office space on rent/lease. Use second hand furnitures and computers. Use open source softwares. Get your work done but minimize the expenses wherever possible.
10. Hire employees. Golden rule – Always hire the best for the job even if you need to pay them more than you pay yourself.
11. If needed get into strategic partnerships with other firms and organization to provide integrated products/offerings or market/distribute your products.
12. Develop version 1.0 of your product/ Create customer support system.
13. Prepare and execute your product release and marketing plan. Sell your product.
14. Manage cashflow and business operations.
15. Keep improving and never stop.
Simply put, chances are you won’t think of the next big thing. Even if you do, you probably won’t have the resources, experience, or contacts, to turn your idea into billions. We were not expecting miracles but were on the lookout many months in advance. One thing we learned while reading Founders At Work is that many software startups are formed without the faintest clue of what the product/service will be. The most important part of the company is not the idea but the people. A small and closely knit team of people who’ve worked together in the past is a recipe for success, regardless of the idea. Indeed, execution is key! Partnering with people who have a track record of bringing ideas to reality is, in our opinion, the most important part of the business.
We are very happy that we did not wait on having a brilliant breakthrough idea and started our company immediately. We evaluated opportunities and picked the one that made the most business sense, knowing we can adapt along the way. Having made the plunge early in our careers, we felt we didn’t have anything to lose because we didn’t have that many constraints such as leaving a high paying job, a mortgage and student loans to pay, kids to feed, etc. The more acquainted you get with stable employment, the harder it is to leave. Still, it is worth mentioning that while we were very comfortable with our technical skills, our network of contacts is not as large as it would have been if we had been under someone else’s employment for 5-10 years. On the bright side, we don’t have 10 year of accumulated bitterness to carry around and we’re in the best phase of our development careers (from a production standpoint).