There is no feeling that can be compared to reaching the summit, and yet that feeling of elation comes because of the climb and not just reaching the top. Similarly, running a global startup is praiseworthy, but it is the startup journey that gets people invested. If you have ever read a biography of successful entrepreneurs, you’ll find that it all starts with an idea followed by a rollercoaster ride of planning, action, review, and optimizations. We will discuss the parts of a startup journey that contribute to its success.
Why does understanding the entrepreneurial journey matter?
There are zillions of tasks on your to-do list as an entrepreneur. So, why learn about the startup journey or entrepreneurial struggles of others? The simple answer is to learn from them. Understanding the roadblocks others faced and the creative solutions they came up with helps you create your thoughts and solutions.
While you can spend hours going through the entrepreneurial journey of the top startup founders, it will be much easier to get a list of the most common steps most startups follow for success, won’t it? Lucky for you, 21BY72 can help you with that. We have created a task list you can follow and mistakes you should avoid in your startup journey!
The Startup Journey
A founder’s story starts with an idea. However, the difference between someone who can convert their idea into a thriving startup and someone who keeps daydreaming is the steps they need to take for success. Let’s look at a few steps and precautions one should consider for a smooth journey from idea to startup.
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Research
So, you have a fantastic idea that you know will help many. However, your vision alone is not enough to convert the idea into a business or raise funds to run the operations of the said business.
You need to research and find the following:
1. Product-market fit:
Who is your customer, and what are their demographic details?
2. Market traction:
Are customers willing to use your product?
3. Market trends:
How does the industry operate, and what are the general details of the target market relevant to your startup?
4. Competitors:
Who are your competitors, and how can you gain an advantage?
5. Future scope of the startup:
Is the startup scalable, and can it last for the long term?
Yes, much research is necessary to put the first step right and kickstart your startup. A lack of research can cost you time, funds, and resources down the line. In fact, 35% of startups fail because of imperfect product-market fit. So, one of the most critical startup challenges you must overcome is researching and understanding your market trends to create a startup strategy.
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Understand your startup ecosystem well.
A startup rarely works in isolation. The startup’s success depends on the startup ecosystem in the country in which it resides. The startup ecosystem
should provide access to resources, funds, mentorship, and support to the entrepreneurs and the startup to succeed.
The entities of a supportive startup ecosystem are the government, investors, industry experts, incubators, accelerators, and mentors. These entities support startup innovation by facilitating converting an idea into a startup.
So, if you want to have a smooth sailing startup journey, focus on understanding the country’s and your industry’s startup ecosystem. You can attend events like the Global Startup Summit to understand the overall startup ecosystem and some industry-specific events for industrial structure.
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Creating a realistic and scalable business model
Creating a scalable startup is the key to building a thriving global startup. But what does scaling a startup mean? A scalable business model allows you to expand your business to diverse locations without any substantial cost or the need to create a different business model. It helps you simplify the expansion and have more control and clarity of your operations.
A business model includes a vision and mission of your startup, market trends and stats for traction, competitors analysis and advantage, an operation structure, a revenue model, marketing plans, a startup team, and more. You need to create a clear and thorough model to streamline your operations, make it manageable, and secure funds.
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Raise the funds as per your needs.
The second most common reason startups fail in the first five years is because they run out of cash to keep the startup afloat. Nearly 29% of startups close down because of a lack of funds, irrespective of where their capital is coming from.
Timing is everything. The key is to start your search for investors 6-8 months before your cash runs out. It gives you significant time to research the right investors to pitch your startup and negotiate the deals without affecting your growth. Furthermore, if you plan to launch a new feature or enter a new market, it is ideal to raise funds before getting the best offers.
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Use the strategy to grow your local brand presence.
A strong local presence opens many doors for a startup. With strong market traction in the local market, securing funds from investors in the regional and global markets becomes easier. Furthermore, the insights from your successful startup strategy can help you create a practical approach to expanding your business.
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Scale your operations for the global market.
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So, you have established your startup in the local market. Now, you need to expand your market beyond the borders. Start by understanding the market and the customer needs of the country you’re targeting. Understand the government regulations, policies, and taxes that affect your startup growth before entering the market. The easier route is to partner up with the local companies or acquire them to gain the trust of the locals. You can also enroll in incubators or accelerators to help convert your startup innovation into a business plan catering to the new location.
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Do not underestimate the power of networking!
From the above points, you must understand your and your startup’s need to stay connected with the startup ecosystem for success. From market traction and funding to overcoming startup challenges and expansion in the global market, you need to work with the ecosystem and its entities. Therefore, networking should be the most crucial part of your startup strategy. Attend startup events, industry-specific events, business meetups, and more to interact with people in your industry, investors, and mentors, and build reliable relationships. 21BY72 can help you connect with investors, fellow entrepreneurs, and mentors from across the globe. Check out our website for more information, and stay tuned to our blogs for more insights into the Indian startup ecosystem!
Conclusion
A startup journey is like growing a flower; you get the beauty with the thorns However, learning from different founder stories allows you to avoid common mistakes and tackle the roadblocks better. Therefore, we discussed the typical phases a startup journey faces and some insights on how to sail through these phases effortlessly.
Converting an idea to a startup starts with researching your startup’s scope, target audience, market traction, and competitors. Follow it up by creating a business model to scale a startup when needed and raising the funds at the right time. Venture into the global market after building a strong local presence. Understanding your startup ecosystem will help you navigate the entrepreneurial journey easily. Network with the right people to make better decisions and get mentorship and funds when necessary.
FAQs
1. What is a startup ecosystem?
A startup ecosystem is a network of individuals, organizations, and resources that foster the growth and success of startups. It includes entrepreneurs,
investors, incubators, accelerators, government policies, academic institutions, and service providers. A strong ecosystem helps startups access funding, mentorship, and partnerships, enabling them to innovate, scale, and contribute significantly to the economy.
2. How can Indian startups scale in the global market?
Indian startups can scale globally by focusing on localization, forming international partnerships, and leveraging global accelerator programs. Critical
steps include adapting products to suit regional markets, complying with foreign regulations, and building a diverse team with local expertise. Enrolling in the local incubators and accelerators of the target market can help you familiarize yourself with the market trends and get expert insights to create changes in your strategy for effective results.
3. What are the phases of a startup journey?
The phases of a startup journey include pre-seed for ideation, seed for R&D, growth for developing business and development, and maturity for global
expansion and IPOs. The seed stage is the most vulnerable stage, where the startup focuses solely on market research to validate its startup idea. In the seed stage, the startup focuses on creating a business model after researching and developing an MVP. In the growth stage, the startup kick starts its operation and marketing to build a local presence. Finally, in the maturity stage, the startup focuses on expanding in the global market after establishing a local presence.
4. What are the common startup challenges that startups face?
Startups often encounter challenges such as limited funding, difficulty in market validation, intense competition, and hiring skilled talent. Regulatory
hurdles and navigating complex legal procedures can also be barriers. For Indian startups, expanding beyond Tier 1 cities or entering global markets adds logistical and cultural challenges. Effective mentorship, participation in accelerator programs, and adopting technology-driven solutions are ways to overcome these obstacles. Founders must stay resilient and flexible to tackle these issues head-on and ensure sustainable growth.
