There are a number of reasons why startups appeal to people with an entrepreneurial spirit. First, startups have a lean staffing model to maximize profits. Second, startups fill a niche in a particular industry, so competition is minimized. Third, and perhaps the most attractive, startups can be scaled to serve local customers on up to global sales, and anywhere in between, so business owners are always in control.
Choosing the Right Startup
Startups are a combination of research, following trends, and pure creative inspiration. When choosing a startup, begin with a field or industry you know quite well. Think about the obstacles you encountered over the years, and what the industry is lacking, or how things could be done better. The next step is to do some research. Are there similar startups to what you have in mind already in existence? What solutions do they provide? What is their revenue model? Is this a viable startup or is this riding on a temporary industry trend that is subject to change? Play the role of devil’s advocate, and challenge your own ideas to get rid of extraneous things that might become obstacles later on down the road. If your startup is going to make or sell products, you are going to need a test audience who can give you feedback so you can fine-tune your ideas.
Embrace Your Passions
Some of the best startups are those that allow entrepreneurs to express their passions. We have seen it before: C-suite executives who leave the corporate world to start up high-end bakeries; Healthcare professionals who have figured out a way to use technology to bring patients home care; IT folks who break away from the big companies to create computer games. Not all startups lean towards the creative and artistic side, but they do involve creative problem solving and thinking outside of the box to meet a demand that isn’t being fulfilled, or to disrupt a market in a positive way.
Financing Your Startup
Traditional lenders still view startups as “risky” territory, and are reluctant to approve loans for entrepreneurs who are trying to do something new. At Nanaki Capital, we share in the entrepreneurial vision of our clients, and have provided funding to help launch, maintain, and grow successful startups spanning many different industries. If you are thinking about launching a startup, or if you are about to take an existing startup to the next level, talk with the experts at Nanaki Capital. We work with startups directly to create funding solutions tailored to their needs.