{"id":4299,"date":"2021-07-28T09:57:15","date_gmt":"2021-07-28T09:57:15","guid":{"rendered":"https:\/\/startup.assam.gov.in\/?page_id=4299"},"modified":"2021-07-28T10:18:50","modified_gmt":"2021-07-28T10:18:50","slug":"guidelines-operating-exiting","status":"publish","type":"page","link":"http:\/\/startup.assam.gov.in\/?page_id=4299","title":{"rendered":"Guidelines For Operating And Exiting"},"content":{"rendered":"
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Startup Lifecycle<\/h2>\n

The journey of a startup typically encompass the phases right from the germination of an idea to product development, market launch, traction, scaling up, to an eventual exit. We shall discuss in detail about each stage of a startup recycle in the following paragraphs.<\/p>\n

Look for Problems<\/h3>\n

Never look for startup ideas. When you do so, you might fail to add value from a market point of view. Rather than head-scratching for a startup idea, start spotting problems. Once you know the problem, you realize the need for a solution. And once you realize the need, you can think of a solution. Remember that it isn\u2019t enough to innovate a solution that isn\u2019t solving a problem. So, before starting, ask yourself what problem your idea can resolve.<\/p>\n

New or Evolutionary? Define<\/h3>\n

Startup ideas could be segregated into two categories: New & Evolutionary. Define your startup idea. Is it a breakthrough innovation? Or an evolutionary one, a bettered version of the existing product\/service?<\/p>\n

\tLook up the internet to see if your idea has already been executed by someone else. If yes, don\u2019t get disheartened. Work up your mind for ways to metamorphose the existing solution. You may come across startups who succeeded or failed with a startup idea similar to yours. Study their cases closely. Analyze the reasons for their success or failure. It shall help you in execution.<\/p>\n

A startup idea is like one\u2019s baby. You think it\u2019s the best. Unfortunately, emotions don\u2019t work in business. Be a tad more pedantic about your idea. Look for loopholes and improve.<\/p>\n

Is there a Need?<\/h3>\n

While looking for a problem, make sure it isn\u2019t your own bias-ridden problem, but rather a problem that infests a good number of people who shall constitute your chunk consumers. Do your research to confirm whether the problem in question is a problem the people are talking about too. According to the CBI insights, 42% startups fail because they try to \u2018tackle a problem that\u2019s interesting to resolve rather than those that serve a market need.\u2019<\/p>\n

Make sure your product has a need in the market. But before that, decide on the market and the probable customers you want to target. Conduct a field survey to understand if the probable customers are willing to accept a product\/service like yours. Whether your innovation makes sense to them or not. If it does, define the category of those people and determine the segment size. And then try to develop a tentative idea of the amount they\u2019d be willing to shell out for your product. Knowing your market holds the key.<\/p>\n

Validate<\/h3>\n

So, you have done the homework and are fairly convinced about your startup idea. Why not validate the idea with the real world now? This is the time to expose your idea to a small group of potential customers. Make a list of 10-15 people in your surrounding who, you think, could be the potential customers for your startup. Sit for an informal interview with them without making them feel as if you are trying to sell anything to them. Refrain from using jargons. Keep your explanation sweet and simple. Don\u2019t just seek unabashed reviews from your interviewees, but also take note of their gestures and expressions. Their validation, though informal, will give a fair idea about your startup\u2019s position in the market.<\/p>\n

Find a Co-Founder<\/h3>\n

Look for a compatible co-founder who can bring the kind of skills to the table that you might be lacking. For example, if you are into product development, find a co-founder who is adroit in marketing. Whereas, if you are better at handling the business nitty-gritty, you might want to find a co-founder with sound technological know-how. In order to avoid untoward clashes in the future, make sure to sign a Shareholders Agreement from the outset along with clear underlining of key roles and responsibilities.<\/p>\n

Put in Commitment<\/h3>\n

It\u2019s human to slow down unless one has something significant at stake. In this case, it should be your time and savings. Hallmark your commitment to your startup by investing a minimum 10% from your savings into it. This shall keep you on your toes for there\u2019s no way you would want your hard-earned savings to get flushed into the ditch. You will also assuredly squeeze out hours to dedicate to your startup no matter how tied-up you may be with your other errands.<\/p>\n

Determine the Business Structure<\/h3>\n

Conduct a research on the business structures to put your bet on the one most suitable for your business, resources, and legal needs. Open a business bank account and proceed to register the business. Apply for a trade license. Get registered with the DIPP (Department of Industrial Policy and Promotion). If your entity is registered in Assam, apply for MASI (My Assam ID).<\/p>\n

Determine the Finances<\/h3>\n

Draft a business plan. Calculate the tentative wages, office space, marketing costs, product building costs, travel costs, etc. Make sure to plan a budget to meet the legal expenses.<\/p>\n

List down the possible Investors<\/h3>\n

Now is the time to build the list of the first set of investors to pitch. The most feasible choices at idea stage are the 3 Fs \u2013 Family, Friends, and Fools.<\/p>\n

Build a Prototype<\/h3>\n

A prototype is an early sample, model, or release of a product built to test a concept or process. It is a basic model to help you test the efficacy of an idea or concept.<\/p>\n

Protect your Idea with IPR<\/h3>\n

Apply for IPR to protect your idea.<\/p>\n