The world is full of opportunities. Have a new business, product, or service? That dream can be
made into reality. But a dream isn’t enough — 90% of startups around the world fail. Why? The
undertaking of a startup is a complex endeavor, demanding creativity, resourcefulness, and
determination. The early stages serve as a critical foundation for its future success.
Need some advice on placing your idea in the best position possible for success? Let us assist
Early-stage startup tips
Test the business model
The first step in transforming the big idea into reality is early validation of the business model.
How does the startup intend to entice customers and generate revenue? That’s the key
question. The business model serves as a reference for early investors and prospective
stakeholders who need to see a viable path toward profitability. This is the key principle for the
team to keep in mind during the product development phase.
Create a business model canvas
A business model canvas serves as a visual aid. It helps lay out key partners, structures, channels, value propositions, and other business elements in a comprehensible manner. This model aids in substantiating the product's value proposition for the target audience and provides a clear definition of the business to interested parties. When creating this business model canvas, it’s important to rely on a proven methodology to get an accurate representation of how everything connects.
Craft a product positioning statement
Effectively communicating about the product or service with clarity and brevity is crucial. A positioning statement serves this purpose. Employ a concise formula that conveys value, breakthrough capability, competitive differentiation, and other key points all in three sentences or less.
Assess technical feasibility
It’s important to verify that the idea is achievable from an engineering and production standpoint. Assess all aspects of the proposed technical solutions. Gain valuable insights to construct and adapt the product while mitigating risks.
Use a virtual CTO
A virtual CTO is the ideal solution for an early-stage startup — bridging the gap between the company’s vision and the technology needed to realize it. Collaborating with the leadership team, a Chief Technology Officer (CTO) explores the technical solutions the product’s team may not be aware of and other possible technologies that could grow the business. Partnering with a virtual CTO also provides assistance with integrating technology into the business strategy decisions and tailoring customized approaches to fit the timeline.
Want to learn more about optimizing the early stages of your budding startup? Check out the
accompanying resource for further pointers.
Infographic created by 555vCTO, Trusted Business Model Canvas Consultant