More and more people, especially young people, want to become self-employed with their business ideas, which can be seen from the fact that the number of successful startups in Germany is constantly growing. In the first place, it doesn’t matter what kind of business idea it is. Innovation, motivation and entrepreneurial spirit are important. Many successful startups have recognized a lack with their idea or discovered a gap in the market. If you want to join them, read here which four basics successful startups need.
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Successful Startups – National and International
The victorious new founders have established themselves primarily with their business ideas in these major areas:
- New technologies/ automation
- Medical technology
- Artificial intelligence
- Environment/ climate/ sustainability
- Online platforms/ online services
- Social networks
If you look back at the successful business ideas of recent years, some successful startups have even worked their way to the top worldwide . You can really learn something from these promising founders. Because they have not only established themselves in Germany or Europe, but also left the global competition behind. It is true that many internationally respected “unicorns” still come from China or the USA, since startups find particularly high levels of support there. The most successful unicorn ideas, which generate sales in the billions, include the well-known platforms “Snap-Chat” and “Pinterest”. However, the quality of German startups is also impressive. Compared to other countries, it is striking that German start-ups establish themselves much better in the market over the long term .
Now you are asking yourself : How can you become self-employed with a startup ? And also become so successful? You will find tips and tricks like sand by the sea and you will not find a panacea. You have to go the way that is optimal for you and accept the advice that specifically helps your idea . But LEXROCKET gives you 4 basics that can set the course for your start-up project.
Basic 1: The Idea
If you want to bring an innovative business idea to the market, you definitely have to look at the trends of the last few years. But it’s no use just looking for an idea that embodies an apparent gap in the market. You have to do what you do best and what you love most. Because that’s the only way you can be one of the most successful startups .
Starting a new company means a lot of work, time and energy for you. You can only raise these three factors if you implement your own know-how, do something that you enjoy and that you know best. Finding your business idea is a process in which you determine what you actually want to market. Do you want to offer a new kind of service or do you want to create an innovative product?
Define target group
Of course, when you decide what you want to offer, you also determine a target group. This allows you to define right from the start for whom you are founding your startup and who your customers will be in the end. You should definitely consider your target group in the process of finding a business idea. Because only if your offer reaches your customers will they also consume it. Therefore, tailor your idea to your target group and analyze what characteristics it has in terms of purchasing power, consumer behavior and needs. This is crucial to your future success .
Placement in the market
Once you have found and defined your business idea, it is a matter of placing this idea on the market. On the one hand, the success of innovative startups lies in the fact that they discover a gap in the market at the right time and in the right place. On the other hand, it can be promising if you jump into a current trend in good time. To find successful startup ideas, you should examine many different industries and identify possible trends, you can do this with a competitive analysis, for example .
Basic 2: The Team
Alone you are strong, together you are usually stronger. If you have a promising and future-oriented idea for starting your own business, think twice about getting on board. Because you can see one thing in successful startups: Most good startup ideas were not realized by one person alone. Assemble a team to achieve your vision. If you want to set up a start-up in the software sector, you may need IT specialists at your side because you may have studied business informatics yourself, but you are not very good at programming yourself. If you want to jump on the train of medical technology, you not only need trained engineers for your company, but also competent medical professionals who can assess the feasibility of the various ideas. No matter which division you choose: a competent and expert team is essential for your company. You can read in this article how to find the right employees for your startup .
Clarify composition and distribution of roles
The team can then also support you in developing a good business model and creating a meaningful business plan . Because without the right strategic planning in advance, you cannot implement even the best idea. It is important that you and your partners plan the new startup from the start with a well thought-out business concept. For example, the following questions are important right from the start:
- Which time factors do you have to consider?
- What different departments does your startup need?
- Who do you trust for future development?
- Who is responsible for buying and selling?
- Which employee controls the finances of your startup?
- What materials or equipment do you need?
- Who is responsible for the accounting?
Basic 3: Funding
Speaking of finances: It is clear that successful business ideas are linked to proper financing . Maybe you are lucky as a founder and have a certain capital that you can use for the first steps of your company. But what if that is not the case. How can you get grants for starting your own business ? Especially as a newcomer, you have the opportunity to use ventures or venture capital to finance your business idea. These are investors who specifically support young and innovative companies financially. However, these startups are not publicly traded. The investment represents a certain risk for the financier, since he cannot foresee the future developments of the company and sales on the market. However, he is so convinced of the idea and necessity of the startup that he takes the risk of investing in the respective newcomer. This can take place at three points in time or phases (“stages”) of the foundation .
Phases of establishment
In the first phase, your startup and your business idea are still in the starting blocks. That is why one speaks here of the “seed stage” or seed financing . The second stage is called the “early stage” . Here the startups have already developed further and have mastered the first stages of founding a new company. In the third stage, the “growth stage” , your startup enters the expansion phase. This period is about increasing the size and value of the company. The aim is to increase employees, customers and sales, to expand production and to establish oneself in other markets in several countries .
Benefits of venture capital for your success
It is helpful for founders that the venture entrepreneur not only supports them with money, but also with various consulting services , which can be of great benefit in certain areas. With years of experience, they have exactly the right industry tips for founders . It is important for you to know that the various venture capitalists and business angels specialize in different sectors.
Basic 4: Marketing
Once you have successfully cleared the first hurdles with your new business idea, the next step is to sell your startup idea. The best business ideas are useless if they are not properly marketed. With well thought-out, professional marketing , you can achieve a high level of awareness with your startup and thus attract many new customers . This guarantees you high sales and the long-term success of your company. Here it is important that you use the type of marketing for your creative business idea that reaches your target group.
Why should you use social media for marketing?
In addition to classic advertising strategies, the best marketing option is now probably the Internet . Here you can not only get acquainted with your website. You can also present yourself on different platforms or social networks. In particular, social media such as TikTok or Instagram are important channels in online marketing, especially for startups . With high-quality, target group-oriented content, you can quickly build up a fan base here. By working with influencers , you can even increase your reach if they act as recommenders for youact. It is well known that users very often come into contact with new products for the first time on social media.
Why is the quality of marketing measures crucial?
With all marketing measures, however, the quality should not suffer. With a strong team and good financing, you ensure excellent quality and thus achieve a high level of customer satisfaction . Ultimately, this is the be-all and end-all for a successful company. Ensure the loyalty of your customers right from the start by setting high standards for your products or services and your service . Because satisfied customers ensure that you can assert yourself against the competition and realize your successful business idea.