Learn how founders start a business
As a member of Silicon Valley Bank’s Startup Banking team, I focus on helping Bay Area founders in the frontier tech, enterprise software, and consumer internet spaces. Recently, I wrote a short guide about how to start a business. Below is an excerpt from that SVB Startup Insights article.
Recent shifts in social and business foundations, along with a relentless economy, have opened up terrific opportunities for tech founders. Now may be better than ever to build a startup.
That said, starting a business at any time is still hard. But founders can beat the odds with a big idea, a solid plan, the right kind of funding, and a killer team to pull it all together.
Dig into these four areas and you’ll be off to a great start.
1. Refine your big idea
Your initial idea may be just the start — many founders have reconsidered their business plan and scrapped their original concept in favor of a smarter one on their way to success. Of course, an idea is valuable, but what matters more are the people who have the ideas and the willingness to pivot and pursue a more rewarding concept.
2. Build your business plan
All business plans generally follow a similar format that includes your product and team’s description, a market and opportunity analysis, and a financial plan. With your initial concept ready — and research, operations and sales plans complete — you can begin to assemble a business plan that formalizes your idea. Communicating your big idea with clarity and purpose will be critical as you present it to others, especially financial institutions. A business plan will enable you to do that.
3. Start your funding
If you have a solid product and business plan, you can pitch for funds. In fact, when you’re building a startup, you’re actually doing investors a favor. You’re earning them a healthy return for placing their faith in your idea, expertise and passion. There are options for investors, including (but not limited to) bootstrapping yourself, seeking angel investors, and pitching for venture capital.
4. Shape your team
Finding the people and specialized talent you need to take your company to the next level — and how you compensate them — are some of the most crucial decisions you’ll ever make. There is a need to act quickly, of course, but you need to be careful as well. Friends and former colleagues may be good choices personally, but you need to be sure they have the skills to help you scale and reach your performance goals. Shaping your team with the right talent and skills can set you up for success.
Growing your big idea into a business can be tricky at any point — but it’s also very rewarding. Read my SVB Startup Insights article and learn even more about how founders start a business.
