In my view, starting a new business has never been easier, and according to reports from the Kauffman Foundation, the numbers are here to show it. The rate of new entrepreneurs increased between 2013 and 2021, from 280 to 360 out of 100,000 of the adult population. They helped create over 5 million new businesses in 2022, a forty percent increase over the previous year.
Of course, that’s both the good news and the bad news for aspiring entrepreneurs, since it means more competition, and the business landscape is changing faster than ever. But for founders who do their homework, the cost of entry is lower and the opportunity is higher than ever. Who would not want to join the unicorns (recent startups with a current valuation of over $1 billion)?
Even the homework is easier, with free access to more opportunity details and competitor data on your mobile device from anywhere in the world. Excellent detailed resources are everywhere, including a classic book, “The Startup Checklist,” by serial entrepreneur and founder of the New York Angels, David S. Rose. He nails the current key startup parameters, including the following:
- Crafting a lean business plan as your road map. The days of lengthy, text-heavy, business plan documents prepared by expensive experts are behind us. Investors and partners now look only for a framework of your business essentials, within the context of your opportunity, solution, and financials. Just make sure you can fill in all the details.
- Building a minimum viable product, with customer validation. Years ago, it cost a million dollars for a new e-commerce site, one that you can now create for almost nothing with current tools and technology. Minimum viable products (MVPs) are recommended for validating the market, with iterative enhancement to quickly meet market feedback.
- Incorporating a business entity early through online services. Before you bring on partners, develop intellectual property, raise capital, or generate revenues, you need to establish an official business entity. These days you can create a C-corporation online quickly at a low cost, which will serve you well, without waiting for an outside attorney.
- Establishing your brand with interactive social media. Building your public image and presence should start even before product development, through your website, logo, and blogging. Early customer feedback will position your solution, and help you make pivots before critical time and money are lost. The cost of social media done well is low.
- Using new tools for recruiting key players and advisors. Networking no longer is primarily a face-to-face serial activity. Online “dating” assistance, including Founder Dating Playbook, StartupWeekend, and CoFoundersLab, as well as LinkedIn and Facebook, give access to the people and skills you need, without the time and cost of travel and small talk.
- Rounding out the team with employees and freelancers. With the Internet and modern video communication tools, including Skype and Google Hangout, you can find the people you need, from anywhere in the world, and sign them up quickly. Successful startup teams today have a mix of remote employees, freelancers, and contractors.
- Fundraising through online platforms and crowdfunding. Professional investors now look for startups through popular online platforms, including Gust and InvestorHunt. Non-professional investors now use crowdfunding sites, like Indiegogo and Kickstarter, for similar access. Angel groups, accelerators, and incubators are pervasive. Use them.
- Measuring progress with big data and analytics. You don’t have to be a heavily funded later stage startup to get access to “big data,” customer analytics, and metrics dashboards. Remember that early and consistent measurement is the first step leading to better control and quicker improvements. Set milestones and manage to those targets.
