Define your mission and vision

Your mission defines the problem your startup aims to solve, while your vision outlines the long-term goal you aspire to achieve. These elements shape the startup’s strategy and are essential for attracting both a team and investors. Skipping this step makes it difficult to convince others of your startup’s uniqueness and the significance of your project.
Tip: formulate your mission and vision in a way that resonates with your target audience and highlights your competitive advantage. Use clear and inspiring language that helps people understand your value proposition.
Example: the Spanish startup Glovo initially focused on the mission of “delivering everything, everywhere.” This attracted early investors and accelerated international expansion because the team could clearly explain how their solution addresses the problem of quick access to services and goods.

Conduct market and competitor research

Market research is one of the most critical steps at the outset. Before launching a product, ensure that it is in demand and unique. This will help you understand your target audience and develop a strategy for attracting customers.
Tip: utilize tools like Google Trends, SEMrush, and Ahrefs to study the market, identify needs, and find weaknesses in competitors. This will help you differentiate your product and avoid common mistakes.
Example: the fintech startup Monzo conducted a detailed competitor analysis and found that existing banks lacked convenient tools for real-time expense tracking. This gave the startup a competitive edge and helped attract initial users who appreciated its simplicity and ease of use.

Create an MVP (minimum viable product)

An MVP (minimum viable product) is a basic version of your product designed to test hypotheses and gather feedback. It is a key tool for a quick start and attracting investor attention.
Tip: focus on creating a product with a minimal set of features that addresses the core problem of your audience. This allows for rapid testing of your idea and optimization of the product based on feedback.
Example: the Estonian startup Bolt (formerly Taxify) developed a simple MVP for ordering taxis, which quickly entered the market and gathered initial feedback. This approach helped attract investment and initiate scaling.

Financial planning

A clear financial plan demonstrates to investors that you understand how to manage resources effectively. A poorly constructed plan or its absence can deter potential partners and investors.
Tip: develop a straightforward financial plan that outlines essential expenses such as development, marketing, legal services, and salaries. Don’t forget to include a reserve for unforeseen expenses to avoid financial difficulties. It’s also helpful to incorporate revenue forecasts and scenario analyses to show potential risks and opportunities.
Example: the Finnish startup Wolt, when launching its food delivery service, carefully planned expenses and optimized them in the early stages, which allowed them to successfully attract investors. Their approach to financial planning became one of the key factors for success in a competitive environment.

Build your team

A strong team is the foundation of a successful startup. Mistakes in selecting specialists can prolong development and lead to financial losses.
Tip: define key roles, such as CTO, marketer, and CFO. Look for individuals who share your mission and are committed to achieving results. It’s important not only to hire professionals but also to create an atmosphere of collaboration and trust within the team. Consider bringing in mentors or advisors with experience in your industry to strengthen your team.
Example: the German startup Celonis attracted experienced professionals in analytics and technology, which allowed them to quickly develop the product and secure initial investments. Their success was made possible by the coordinated work of a team focused on common goals.

Choose your location and consider legal aspects

Selecting the right location for registering your startup is a crucial factor that affects taxation, availability of investments, and grants. Some countries offer support programs for startups, providing tax breaks and development grants. For certain types of businesses, especially in IT or international trade, it may be beneficial to consider offshore jurisdictions to minimize tax burdens.
Tip: when choosing a country to register your startup, research support programs and grant opportunities. For instance, Estonia and Finland have government programs offering grants for startup development and technological implementation. Take into account the tax legislation and the possibility of using offshore jurisdictions, such as Cyprus or Malta, to minimize tax burdens. It’s essential to comply with all legal regulations and check local laws regarding intellectual property and data protection to avoid future issues.
Example: the Lithuanian startup Vinted chose Lithuania for registration not only because of favorable taxation but also due to grant opportunities. This helped them rapidly scale their business and enter the international market.

Develop your marketing strategy

Marketing is an integral part of startup success. Even the best product will not succeed if no one knows about it.
Tip: develop a marketing strategy that includes both online and offline channels. Use social media, content marketing, email campaigns, and PR activities to attract customers and increase awareness of your brand. Analyze the effectiveness of various channels and adapt your strategy based on the data collected.
Example: the startup Airbnb initially leveraged social media and viral marketing to attract users. Their ability to quickly adapt to user needs and change marketing approaches contributed to their growth and success.

Self-work and professional help

Not all tasks can be tackled alone. There are areas where it’s better to seek expert assistance to avoid mistakes.

what is advisable to do on your own:

• define your mission and vision;
• conduct preliminary market analysis;
• create an MVP.

here it’s better to seek expert assistance:

• financial planning;
• legal aspects and company registration;
• optimizing tax planning;
• developing a marketing strategy.

Conclusion

Launching a startup requires a comprehensive approach and thorough consideration of each stage. Skipping any step can significantly reduce your chances of success, including when seeking investments. To minimize risks and increase your chances of success, it is crucial to follow the outlined steps and involve experts when necessary. Remember, every successful startup begins with an idea, but its realization depends on a clear strategy, a capable team, and the willingness to adapt to market changes. Don’t forget to learn from the mistakes of others and continuously improve your product based on customer feedback and changing trends.
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