Startup finance 1.pptx.pdf

STARTUP FINANCE TYPES OF STARTUPS *Scalable Startups: These startups are designed for rapid growth and scalability, typically in the technology sector. They aim to reach a large customer base quickly and often seek significant investment to fuel their expansion. Examples: Uber: Revolut...

STARTUP FINANCE TYPES OF STARTUPS *Scalable Startups: These startups are designed for rapid growth and scalability, typically in the technology sector. They aim to reach a large customer base quickly and often seek significant investment to fuel their expansion. Examples: Uber: Revolutionized transportation by connecting riders with drivers through a mobile app. Facebook: Started as a social networking site and scaled to become a global platform with billions of users. **Small Business Startups: These are typically local businesses that focus on steady growth and sustainability rather than rapid expansion. They often cater to specific community needs and are usually self-funded. Examples: Local Cafes: Small coffee shops that serve the community. Grocery Stores: Independent stores catering to local customers. *** Lifestyle Startups: These startups are created by individuals who want to turn their hobbies or passions into a business. They prioritize personal fulfillment and lifestyle over high profits. Examples: Online Dance Schools: Entrepreneurs offering dance classes based on their passion for dance. Travel Blogs: Individuals monetizing their travel experiences through content creation. Buyable Start-ups Big Business Start-ups Social Start-ups E-commerce Start-ups Fintech Start-ups Health tech Start-ups Ed-tech Start-ups  7 startup stages of growth 1. Pre-seed stage 5. Expansion stage 2. Seed stage 6. Maturity stage 3. Early stage 7. Merger and acquisition stage 4. Growth stage Steps to Help You Start a Startup 1. Start with a Great Idea your idea doesn’t always have to be a new one. You can update existing products or services in a way that’s better for the consumer. This can be as simple as: Changing the product’s appearance Adding a new feature Finding a new use for a product that customers already love 2. Make a Business Plan Once you have an idea, you’ll want to start building a business plan that describes your products and services in detail. It should include information on your industry, operations, finances and a market analysis. 3. Secure Funding for Your Startup The cost of a startup is different for every business owner. However, no matter what your costs are, you’ll likely need to get it from: Friends and family Angel investors Venture capitalists Bank loans 4. Surround Yourself With the Right People There can be a lot of risk in starting a business. That’s why you’ll need essential business advisors to help guide you along the way, like: Attorneys Certified Public Accountants (CPAs) Insurance professionals Bankers Building the right startup team is especially important in the early stages of small businesses. This means you’ll want to carefully select your: Co-founders Contractors Initial employees, including remote workers 5. Make Sure You’re Following All the Legal Steps Applying for a business license Registering your business name Getting a federal tax ID number Filing for a trademark Creating a separate bank account Familiarizing yourself with industry regulations Building contracts for clients and others you plan to work with 6. Establish a Location (Physical and Online) Keeping your store open 24 hours a day, on weekends and on holidays, which increases sales. Helping you reach customers around the world. Allowing customers to read reviews about your products, which can raise your brand’s credibility. 7. Develop a Marketing Plan Establish a brand identity Stand out from the competition Create customer relationships and build loyalty Increase visibility, which attracts new customers Strengthen your company’s reputation 8. Build a Customer Base Boosting your sales, because they’re willing to keep spending at your company Sending a message to new customers that your brand is trustworthy Gaining referrals, which saves you time and effort with finding new customers 9. Plan to Change Hiring forward thinkers so you know your team is adaptable Listening to feedback from customers, suppliers and others that you work with Staying updated on trends in your industry Innovation Startup: Focuses on creating innovative solutions or disrupting existing markets. For example, Airbnb developed a new business model for short-term rentals that disrupted the hotel industry. Traditional Business: Often provides standard products or services without significant innovation. For example, a local coffee shop sells coffee but does not introduce a new concept to the market. Growth Strategy Startup: Aims for rapid growth and scalability, often seeking external funding to support expansion. For example, Uber rapidly expanded its ride-sharing service to new cities globally. Traditional Business: Prioritizes stability and sustainable growth. For example, a local hardware store focuses on serving its community and maintaining steady sales. Risk Tolerance Startup: Willing to take on higher risks for the potential of high rewards. Traditional Business: More risk-averse, focusing on maintaining profitability. For example, a local plumbing company prioritizes steady work and customer satisfaction over high-risk ventures.