A company just getting off the ground and associated with a business that is typically technology oriented and has high growth potential is Startup.
Paul Graham, co-founder of Y Combinator said “In comparison to traditional business ventures, startups are expected to grow rapidly, at a rate of between 5% and 7% per week in their initial stage”
Reason is that investors are looking for the highest potential return on investment, while balancing the associated risks.
Who can start the startups? Any person can think independently and can start a startup.
You need to think before starting why should you do this, what is your passion, where is expertise, financial strength and support, source of fund etc. Besides, you have to have another look at your business idea, what would be the next steps, money needed and how much you have. You have to use better, cheaper and faster approach.
You need to analyze the market needs, what you are going to produce, needs to exist. In the market or new, if exist, you have to think about the demand and supply, availability, price, quality and quantity. If new needs a requirement study, why customers will purchase it, what price will they offer, is it break-even or profitable or how long it will take to be profitable.
You have to be formal that means finalized the name, address, business structure, capital and management body.
Business plan has to be finalized, first in your brain than in formal/written. You need to analysis the market challenges and opportunities.
Source of fund may be self or from friends and family, local investors or other source like venture capital should be confirmed before start the operation.
After team building and Co-ordination you can start your operation for producing the goods or services. You have to take care of timing. Future plan for product, price, place and quality of services is most essential.
Before entering startup please talk to your nearest one, lawyer, advisor and or a bank/banker. After taking decision you need to know some experience of Startup success and failure rate statistics and trend.
On line survey result of Startup success and failure rate statistics and trend by Go-Globe:
(a) 74% of high growth internet startups fail due to premature scaling.
(b) startups that scale properly grow about 20 times faster than startups that scale prematurely.
(c) 80% of startups are self-funded whereas only 1% of funding for startups comes from VC firms.
(d) 29% of businesses run out of cash before they are able to get fully established.
(e) 75% of startups that are funded by VC are never able to show investors a return on their money.
(f) 42% of startups identified “lack of market need of their product” as the single biggest reasons for their failure.
(g) 80% of successful startups have multiple founders.
(h) 20% of founders who have failed on their first startups, succeed on their second.
Who and from where you can get fund?
You, yes you can get the fund from the Venture Capital if you have met the above requirement. Bangladesh government has taken an initiative to support the startups VENTURE CAPITAL FUND MANAGEMENT UNDER iDEA PROJECT, to fostering innovation and entrepreneurship, support technology-based innovation, create new employment opportunities through providing training and to develop technical skills through a process.
Investment proposals will be selected for funding based on the following criteria:
1. Business idea
3. Plan of business, technical, financial forecasting.
4. Implementation Plan
5. Management team
6. Other factors relevant for business success
The responsibilities of fund recipients/founders will be as follows:
1. Attend all training/mentoring sessions and other required events
2. Ensure appropriate use of funds as per financial forecasting
3. Maintain accurate business, technical and financial records
4. Maintain a separate business bank account for iDEA funds
5. Provide regular progress reports and financial statements
6. Return unspent funds and other resources upon completion, if requested by iDEA project authority
Apply now to get equity funding, mentorship support, office space, business development support, legal and IP support for your startup at: www.startupbangladesh.gov.bd/subm ission
Wish you a good luck.