Things you have to be aware of before launching a startup?
Daria Iniewski | Growth Marketing Manager
25 May 2021 • 10 min read
Things you have to be aware of before launching a startup
The Internet is rife with stories of overnight startup successes or articles about university drop-outs, who built unicorn startups without any money or experience. While of course, there are some few real success cases, the reality is that you really need to take most of the stories on the Internet with a pinch of criticism and rational thinking.
They create certain beliefs in the market about startups that we, as a venture building company, really need to illustrate.
There is no way around it – startups are not an easy business to conduct. In fact, oftentimes they are much more challenging than traditional businesses.
Take a look at the most common myths about startups in the market.
You can build a startup with 0 money
You will need to spend money on it and the truth is that if you make some mistakes at the beginning you might end up spending two or even three times of your “most expensive, yet highly impossible” budget. The recent research from GoodFirms shows that the average price of a simple app is between $38,000 to $91,000.
On the bright side, this price largely depends on your work force and you can save a whopping amount of money hiring developers from cheaper places, like Poland. On the dark side, the location of your developers is not the only cost factor.
As we mentioned in the https://winalife.pl/how-to-choose-a-programming-language/ blogpost, some programming mistakes can cost founders tons and tons of money. Wrongly chosen programming language, for example, can drive costs to unprecedented levels.
The harsh reality is that if you are not a programmer yourself, who can build an app by himself and you don’t have an investor it will be impossible to build an app with “the money you saved from not buying take-away coffee”.
Be honest with yourself – do you believe in your application idea to such an extent that you are willing to spend lots of money that you might never see again?
A great product will sell itself
Most of the startup founders focus obsessively on the product and its features, completely ignoring the growth strategy. It is, however, a huge mistake.
The harsh reality is that it is very unlikely that someone will use your application unless you put a lot of effort into marketing and sales.
How many friends and family members do you have? I’d bet it’s below 100.
If you actually have 100 friends and family members we have some good and bad news for you.
Good news: you will probably have few first users in a matter of days. Bad news: if you don’t have any idea or cash to promote your app further you are very likely to get stuck with this number for a while.
In the modern world it is extremely hard to promote products without a well-crafted growth strategy. Digital products are not an exception.
Before you even start building your startup, think about how you will promote and how much money you will need to allocate for it.
You can work, full-time, enjoy work-life balance and still build a unicorn startup
Are you comfortable with the idea of working on the weekend? Are you okay to sometimes sacrifice your holidays, get-togethers with friends or Netflix nights?
It doesn’t mean you will immediately give up all your hobbies, eat once a day to save time and sleep at your working desk.
It just means that sometimes you will need to prioritise your work to other exciting activities.
Some people are drawn to startups like moths to a flame because they believe that they can build a business that will guarantee them a passive income for many years to come. It is certainly true that there were and there are some cases when someone built some software that was put out on the internet and sold to users many times without any active participation of a business owner. However, nowadays in the increasingly competitive world these situations are certainly very rare.
Someone can easily replicate your product and gain your part of the market, by putting more money into the marketing and actively selling it to your potential customers.
Therefore, don’t be greedy with your time, your startup will need it as a plant needs water.
Startups are really exciting to build and can indeed be very profitable. However, the secret success formula is the same as for regular businesses – money, time, hard work, a lot of marketing and a bit of luck.
If you have some doubts regarding possible ways to build your startup, we in Winalife, will be happy to help. We possess knowledge and experience in building and growing startups and therefore will be extremely happy to give you a hand.
Feel free to reach out to us at email@example.com