There are several different approaches to startup development you can choose from. Every startup aims to implement a well-defined strategy and present an innovative product to investors. But before attracting the investors, a startup needs to pass through many specific stages. In this article, we will focus on the most important parts of startup development that will take your business to the next level.
Team
Choosing a dedicated team is a huge factor in a company’s success. Team structure depends on your business type, goals and prospects. Hiring a full-time team is more productive and cost-effective than looking for individual freelancers. Let's discuss three common team structures:
- The functional team is based on job specialization. Team members are grouped according to their skills and knowledge. It’s the most popular and effective structure but the isolation of different departments and lack of communication between them may decrease the company’s productivity.
- The cross-functional product team can be ideal for startups and consists of individuals doing independent tasks in order to reach the same goal. In this case, team members can easily share ideas, though they work differently and perform different tasks, it can be complicated to come to an agreement.
- Hybrid team is a combination of both structures.
However, there is no ideal team structure and as the startup grows it should be switched and modified if you realize that the chosen structure can no longer move your business forward. An entrepreneur should be flexible enough and open to experiments when needed.
Cost
It is hard to estimate startup cost but necessary to get your company off the ground according to your financial plan. Costs may vary depending on your industry (brick-and-mortar businesses, online businesses) but there are basic unavoidable expenses that happen before you launch the startup and ongoing expenses. One-time expenses: incorporation fees, logo design, website design, rent, tech equipment, office equipment. Ongoing expenses: rent, taxes, legal services, loan payments, insurance payments, marketing costs, utilities, employee salaries.
The second step is to estimate the exact cost of each expense, some of them are easily calculated (taxes, rent, licenses), others are less defined (salaries, marketing costs). You can use a LivePlan software to estimate your expenses, assets and financial model.
Time
According to the statistics, 60% of startups don’t survive the first five years. Creating a startup can happen really quickly. Turning it into a real business — requires a lot of time and work. First of all, focus on Minimum Viable Product (MVP) and define the timeline to build it. Based on startups.com survey it takes at least 3-4 years to transform a startup into a real business. Make sure to focus on every startup stage and pay attention to the details. A well-developed business plan will help you to present the idea to investors and potential partners. Describe carefully what should be achieved, what is the uniqueness of your offer? Keep safe all documents related to your startup. Whether you are a professional entrepreneur or just started a business, concentrate on strategy, management and prioritization.
Evercode Lab has worked with many startups representing various industries (medicine, education, e-commerce, blockchain). We can provide you with a full-time development team based on your company’s needs and goals.
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