Are creativity and innovation enough to launch a startup and become a successful entrepreneur? No! Planning and organization are necessary to achieve significant results within the ever-more technological market, exploiting innovative and original business strategies that can revolutionise the target market.
In today’s article we will talk about Italian companies, small and medium enterprises and how to create a successful startup with constant commitment, great ideas and lots of patience. But first of all, do you know what a startup really is?
DEFINITION OF STARTUP AND MAIN FEATURES
According to Steve Blank, a startup is a “temporary organization designed to search for a repeatable and scalable business model”. And its main features are the following:
Since 90% of Italian startups fail, it is important to be honest and ask yourself some questions before starting a business:
The concept of startup is very tied to that of disruption, or creative destruction so called by Joseph Schumpeter in the field of innovation linked to business and the economic system. The insertion into the market of a new product, or of innovative processes and techniques, must be able to change the market and generate value for the company and its customers. In fact, as creative as it may be, an idea is truly innovative if it is put into practice. All companies must be innovative and must aim to change the world.
Italian legal system (art.25, Decree of Growth 2.0) states that to be innovative a startup must have “as exclusive or prevalent social object, the development, production and marketing of innovative products or services with high technological value“. Moreover, the startup must meet at least one of these conditions:
The sources to which a startup can request funding are:
The innovative startups registered in Italy at the end of 2018 grew by around 9,996 units compared to the previous year. According to the Ministry of Economic Development startups of any kind (technological, digital, craft, social, agricultural or commercial) help Italian economic and employment growth, especially among young people, representing a real source of progress and making Italy a country dynamic and energetic.
Business plan for your startup
The business plan, the document that encompasses and explains the objectives of the company and its model, is indispensable for any company and startup. A good business, to be functional, must contain the following information:
Alternatively, there is the Business Model Canvas, a document drawn up in graphic form that offers an overview of the various parts that composed the startup, helping to understand how the company works. The Business Model Canvas is generally made up of 9 blocks:
When the business plan is ready you can contact a notary to register the deed of incorporation to the Registrar of Companies or to use the platform, following the procedure to obtain the Statute and the Constitution that must be digitally signed and sent to the Agency of revenue.
As regards the control of company receipts and expenses, there are simple tools that allow you to manage billing. These are software for creating invoices within the cloud that enable to save time and money and can be used by everyone through a computer or smartphone, using an app. These types of smart startup tools simplify the lives of young entrepreneurs and help optimize time.
TIPS FOR CREATING YOUR SUCCESSFUL STARTUP
The methods and strategies for doing a winning business and creating successful startups are manifold and there is no a single rule to reach the formula for success. But what we can recommend to someone who is thinking of opening an innovative startup is:
It is possible to identify common grounds among the successful startups and determine which factors have the greatest impact on the market. Before starting, it could be useful to analyse the factors that most had an interesting impact on the success of some existing startups.
The answer to the question “what are these success factors and how can they be useful to my startup?” was provided Bill Gross, founder of numerous startups and Idealab, one of the most important technological incubators in the world. Analysing and comparing data from hundreds of startups, Gross has identified 5 factors that have a fundamental impact on startup growth.
The timing has a strong impact on the success or failure of startups, so keep in mind that the idea is fundamental, but even more so is the strategy used and the timing within which your startup will enter the market.
Team and execution
You need people good enough to put in practice your idea, so surround yourself with the right team to achieve the success you deserve.
It is true that behind many successful startups there is a unique and recognizable idea, but this is not enough to guarantee that your startup works. People don’t care so much about ideas, but about the solutions that better simplifies their lives.
Unlike what peole might think, the business model is not something definitive but continuously changes, even 2/3 times a year. Some startups do not have a well-defined business model or modify it several times before finding the right one to reach the success.
Investments for startups are not necessary to start the business, it is possible to start with self-financing and then rely on external investments, but only when the product really works well.
How to create successful startup
Given that creativity and innovation are indispensable prerogatives to enter the modern 4.0 market, it is necessary a careful planning of the business idea. A winning manager plans a detailed business strategy supported by an effective marketing plan. Let’s take a look at some essential tips to create a successful startup.
BENEFITS OF INNOVATIVE STARTUP
Let’s see together the benefits that all innovative startups can enjoy: