How to Start-Up in 2023 | Bunch Consulting
From finding the idea worth investing your time and resources in, the documentation that you’ll need to have in place, and the ways to secure funding – we know Start-Up founders are dealing with all of these challenges and many more. Here we'll guide you through the intricacies of starting your own enterprise. The lion’s share of advice in this article is based on our observations and processes we’ve implemented in our Start-Up Kit.
How to find a start-up product idea
Got a head full of ideas on innovative tech products? Or are you wondering, where to look for inspiration and what market to choose? We got you covered here! Trust us, we know the struggles of start-up founders. Let’s have a look at what to do to successfully launch your IT product or service.
The human factor – motivation
Many how-to-startup guides skip this point and begin with advice on choosing the idea, and planning the development of a product. We think that getting in the right mindset is essential to the process of choosing your business path. The motivation comes and goes, it’s natural. To keep going when it wanes, create habits and follow routines. No matter if you’re a type of entrepreneur that follows impulses and acts according to intuition or a business owner that has to analyze all the available options and sometimes gets stuck – take the time to write down questions that arise in your head, then try to answer as many as possible. Write a list of your goals and the steps that are needed to achieve them.
Finding THE IDEA
Asking the right questions can’t be overestimated. Looking for your start-up product inspiration also relies on asking yourself questions. Start by answering the following:
Finding answers to these questions will get you closer to THE idea for your product. If you already have an idea, they may help you create a more broad picture.
What are the origins of THE IDEA at Bunch Consulting?
In the beginning, we said that we know the struggles of start-up founders. Helping to develop apps and services from scratch brought us THE IDEA of creating a Start-up Kit. It is a package designed for early-stage start-ups to support them in the journey of developing their product. Once you have an idea of what you’d like to do, we take over and lead the process from product concept definition to MVP and a detailed product launch plan.
How to answer the “What and Why” about your product
Does anyone need to be convinced about the importance of knowing the “What and Why?” when doing something in private life or business? It drives us towards completing our goals and justifies the undertaken actions. That’s why we’d like to show you the value and influence of the Product Vision Statement and User Value Flow for start-ups.
Product Vision Statement
This document describes the key features of your product and the ways it interacts with the users, the market, and the business. It helps to create a bigger picture and answer part of the “What and Why?” questions from your team. A concise Product Vision Statement will help you show what problems your product solves, which is especially important for start-ups coming up with unique and innovative solutions.
User Value Flow
This document aims at showing the value and benefits of using your product to their users. Usually, it depicts the user journey in a graphic form, along with the profits derived from the steps that the users take. Have a look at our website (Start-Up Kit tab) to see a sample User Value Flow document. By creating a User Value Flow, you not only show the benefits that users get from your product but also make a point that justifies your past and future actions in the eyes of your team and investors.
We hope that you see why creating these documents is essential to proceed with developing a new IT product. The Product Vision Statement and User Value Flow are one of our Start-up Kit components.
A Product Roadmap – your start-up needs it!
What are the components of success when it comes to developing your IT product? It’s great if you have a detailed plan, but is it enough? Based on years of our experience – no. Then what can a start-up do besides planning to increase the probability of success? Add implementation, competition analysis, and continuous feedback to planning, since this is the recipe for succeeding. At this point, a product roadmap comes to help! How exactly? Find out below!
Improvement of the decision-making process
Understanding and implementing the business strategy is essential for start-up stakeholders, developers, and team members. You’ll also benefit from developing a product roadmap because it clearly depicts the most important features of an IT product from the secondary ones. This way, it supports your decisions based on data and provides a full picture of the product.
Communicating your product strategy
Thanks to a proper roadmap you can effectively communicate your product’s strategy among team members, stakeholders, third parties, etc. A smooth cooperation of all people involved in your project is more likely to happen when your team members understand how their individual tasks will contribute towards the success of the product. They’ll feel their importance and will be more motivated!
Marrying technical solutions with business goals
A product idea has to be supported with the right solutions. The possibilities of adding new features and functionalities in the future are determined by the tech stack you decide to use. We can help you to connect technical solutions with your business goals!
Ideas for tech start-up funding
“If I were a rich man….” I’d start a business? We’ve got good news for you! If you’re a start-up founder, you don’t have to own the money needed to kick-start developing your product. That’s why we’d like to briefly show you three funding options to consider.
Angel Investors
Compared to VCs, Angel Investors are more likely to invest in risky projects, since they’re often looking for tech unicorns. That’s why it’s a good idea to reach them at the early stages of development. What you can expect from this type of funding and cooperation is a more personal approach and mentor-like attitude toward the founders. They usually invest less than VCs but are ready to provide business advice.
Venture Capital
VCs invest in start-ups that seem reliable to them, have a well-thought plan, and already generate profits. You’ll benefit from this type of funding by cooperating with professionals experienced in creating and scaling start-ups and solving all potential challenges you can encounter on the way. You can expect new connections in terms of networking, and increased recognition in the business community. The thing to consider is that in addition to the portion of equity, this funding option implies participation in decision-making processes.
Crowdfunding
You’re probably familiar with the idea of raising money using specific platforms. If you decide on this funding method, the advantage is that you can see how many people are interested in your digital product by looking at its pre-orders and launching your product fast. There is a risk connected with stealing the idea, though.
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Create an MVP – fight the final boss
Do you remember playing video or computer games and reaching the final boss? Coming to that point meant you won the battles on the way. In the IT world, the equivalent would be creating an MVP – Minimum Viable Product. It helps to establish your market presence and gather feedback from the users.
Why does it make sense to create an MVP?
You’ll save time and money
We know that there is a huge temptation to immediately create a perfect app or service (that has all the features you’ve thought of). But… That’s a very risky way to take. It’s money and resources-consuming. MVP allows you to check if users are interested in your product and if there are any changes needed in the very core version of the app. You’ll benefit from creating an MVP by saving time, money, and resources that can be used later in the development process.
You’ll find the product-market fit
An MVP comes with key functions and high-priority features, and that’s why they are a great indicator of what the audience needs. You’ll know if the core features, differentiating your product from others are enough to attract users.
You’ll increase the speed to the market
Not creating the “ideal” product at the beginning allows for shortening the time-to-market (TTM). The basic needs of your target audience will be satisfied. Additionally, you’ll know if any changes need to be implemented within the basic functionalities.
If you feel like you could use some support on the way to the final boss (aka releasing your product), drop us a message at [email protected]! Also, check our website (Start-Up Kit) for more information about what we do and what comes after creating an MVP.
Managing the SaaS products your Start-up uses
What does managing the SaaS products your start-up uses have in common with playing basketball or doing yoga? All of them require finding balance. Start-ups often have a limited budget, resources, and bargaining power when it comes to purchasing and managing SaaS products. That’s why we’d like to share a few tips on how to effectively manage the SaaS products your start-up uses.
Documentation
Collect all information about the SaaS products that your company is using in one place. It should include information such as the cost per license, number of licenses, term of the contract, etc.
Procurement process
Think of establishing a process for bringing in new vendors. It should include information about the people responsible for security evaluation, contract negotiation, budget allocation, etc.
Integration tools
Using multiple SaaS products calls for a properly organized integration of data and functionalities. Look for tools that will allow you to manage SaaS integrations.
Identity management
Consider using a single sign-on tool to centralize SaaS security credentials and be able to manage access to SaaS tools within your start-up.
Ongoing budget evaluation
Set reminders for reviewing your SaaS spending across various divisions (sales, marketing, engineering, finance, etc.). Checking it regularly will help you optimize your budget. You’ll be able to adjust the spending on SaaS used by every division according to its current needs.
Recession advice for Start-Up founders
How can an economic downturn be beneficial for early Start-Up founders? We know that looking for investors, entering the market, and hiring new employees is more than enough. There’s no need for more variables. Experts are careful with using the word “recession” but it seems to be looming. We’ve gathered advice that will help you go through times of uncertainty.
Invest in…
“I encourage startups to spend on product and people. [...] Large corporations can ‘weather the storm’ or ‘stabilize’ but startups must continue to grow.", Greg Seltzer, Partner from Ballard Spahr says. He also adds that startups should prioritize spending, as funding rounds will take longer.
Share…
"Any plans to reach your next milestone or secure your next round of funding”, Amber Wanner, Co-founder, Vette claims. This way, you’ll ensure that the entire company is on the same page and working towards the same goal.
Provide…
value to your customers.
According to Nate Lentz, Managing Partner at Osage Venture Partners, early-stage start-up founders should "Segment [...] customers and focus on the big spenders; score your customers’ level of satisfaction and focus on the differences you can make to provide more value to them.". Amber Wanner, Co-founder of Vette has a similar opinion – "With a smaller headcount, startups can take the time to better understand their market, identify their product-market fit, and build their product to meet the needs of their customers.". And we couldn’t agree more – that’s why it’s important to create an MVP before developing a product, including all the desired features.
Understand…
the magic of sales.
“For those selling to enterprises, make sure you have a good understanding of their decision-making processes and sales cycles. Do they typically pay for proof of concept and pilots? In your pilot agreement, have you outlined the next steps to take you closer to a broader deal? Who are the decision-makers, and what are the payment terms once a deal is signed?” as Luke Butler, Executive Director of Startup Engagement at Comcast NBCUniversal points out.
What can you do, what can you delegate?
How can you benefit from cooperating with us? We help Start-Ups from putting your idea into a product description to creating documentation that can be used to pitch investors. Our product, the Start-up Kit, aims at supporting Start-Ups through all stages of IT product development starting from product concept definition to understanding your business goals and project objectives. If you already conducted market research or have some documentation in place, we will analyze your assets, add the tech documentation, prototypes, and estimates, and finish up the Start-Up Kit to clear up the vision of the MVP.
Email us at [email protected] to find out more! We’re excited to hear about your project!