How to become a Startup Founder
Are you looking for a way to kick-start your entrepreneurial journey and become a startup founder in Australia? Doing a startup can be very appealing to people who may feel like taking on a new challenge or doing something different from their current full-time job. Whilst it can be daunting, with the right planning, the process can be made much easier. Let’s break down the steps that you need to take if you want to become a successful startup founder in Australia.
Step 1: Research your startup idea
Before you start building out any business plans or ideas, it is important to do extensive research on your business idea. This means understanding the industry trends, researching potential competitors, and gathering data on customer behaviour. You should also research what makes your idea stand out from similar businesses and how you can differentiate yourself from the competition. Doing this research will help ensure that your idea has legs before you move forward with other steps. Investing time at this stage can save you a huge amount of pain later. If you need help figuring out the right business model, you can take this quick quiz, which can help you out.
Step 2: Find a co-founder
One of the most important decisions you will make as a startup founder is finding the right co-founder (or co-founders). The best way to find a co-founder is through your personal network or by joining an entrepreneur group or meetup. A co-founder should be someone you trust and who shares your vision for the company. They should also complement your skillset and be able to fill any gaps in your knowledge. Having another person on board also helps balance workloads so that no one person is overburdened with tasks. Before you proceed, set clear responsibilities, work boundaries and agree the exact equity or remuneration arrangement you will proceed with.
Step 3: Document your business plan
Creating a business plan helps bring structure and focus when launching a new venture. A business plan should include a detailed summary of your goals, including financial projections, target market analysis, marketing strategies, exit strategies, cost estimates for resources needed, and your expected growth strategy. Creating this document ensures that everyone involved understands their roles and responsibilities within the company as well as the overall purpose of the business venture itself. A good business plan is a key prerequisite for raising funds.
Step 4: Put together a team
In addition to finding a co-founder, you will also need to put together a team of skilled professionals who can help you turn your business idea into a reality. This team might include developers, designers, marketers, and people in operations. Once again, the best way to find talented individuals is through your personal network or by joining relevant entrepreneur groups or meetups. Many investors place a huge premium on having a strong team, so it pays to invest in hiring the right people and motivating them through offering equity in the business.
Step 5: Create a legal entity
Before you raise money, you will need to register your business. This can be done by setting up a sole trader, partnership, trust or company entity. To register your business, you can obtain an ABN online. There are different pros and cons to whether you start as a company or another business type. In most cases, startups that focus on technology are likely to register as a company. If you need help coming up with a great name, you can take this business name quiz.
Step 6: Raise funds
Startups in Australia typically raise funds from a combination of personal savings, family and friends, angel investors, venture capitalists, and government grants. The amount of money you will need to raise will depend on factors such as the size of your team, the costs of developing your product or service, and your marketing budget. Once you have a business plan, budget and team in place, you should start pitching to prospective by reaching out to them via their website or LinkedIn.
Step 7: Launch your product or service
After everything is set up legally and financially, it’s time to launch your product or service. This is usually done with a big marketing push to generate interest and awareness among potential customers. To ensure success, it’s important to have a well-designed product or service that meets customer needs and that is backed up by strong marketing and sales efforts.
Step 8: Grow your business
Once your startup is up and running, it’s time to start growing it! This might involve expanding into new markets, launching new products or services, raising additional funding rounds, and so on. The best way to ensure continued growth is to have systems and processes in place that allow you to scale quickly and efficiently without sacrificing quality or customer satisfaction.
Step 9: Manage your finances
As a startup founder, you have obligations to your investors and team members to make sure your finances are tracked closely. This can be hard to get right if you don’t have the right experience or tools in place. Using a platform like Thriday is perfect for startup founders who are time poor, but understand that good financial management is important. Thriday eliminates time wasted on financial admin by automating banking, accounting and tax. You can sign up for a free trial today.
Becoming a startup founder in Australia requires careful planning and strategy before launching into any venture. The first step is researching your market so that you understand what kind of competition exists already and how you can stand out from other companies in the industry. Next, find a co-founder who shares similar values as yourself and complements your skillset. This will help create balance within the business while also helping ensure success with larger tasks down the line. From there, you should create a business plan and raise money. If you follow these steps and don’t cut any corners, you too can launch a successful startup before you can say, ‘I'm the next Mark Zuckerberg’.