You should have noticed- who knows how many times – Legit’s support for Startups. Truth be told, we have lost the count of the dedicated posts on open calls and events for Startups. However, let us know an exact number by taking a look at the Start-Up Resources section in our website, as we give you a full understanding of the Startups ecosystem.
What is a StartUp?
Steve Blank, a business professor, defines it as “a temporary organization designed to look for a business model that is repeatable and scalable”. On the other hand, the Albanian Bill “For supporting and developing innovative start-ups” lays out another definition. Our legislator considers an innovative startup as “a company whose purpose is to create and develop a new business model, product or service, unique and applicable in practice, with an added technological value aiming to improve the existing models, products or services of the business.” Nevertheless, we will go into details on Albania’s draft law, in another blog post.
What makes the difference?
Entrepreneurs can tell, and we will confirm: the instrict desire to create an unique business model and provide an innovative solution in the market distinguishes the startups from the rest of business enterprises. However, it is not always about having the greatest idea ever. Before the launch of the scalable and repeatable product, founder(s) go through a prolonged research process, which profesor Blank considers as “the scientific method approach”.
Extensive hours of brainstorming and background research, raising hypotheses and testing every potential scheme, studying the market and experimenting on the collected data – go beyond the bravery to take the risk into the unknown. (Entrepreneurs – we see you, and we honor your strive for progress!)
In order to explain the nature of a Startup, we have to demonstrate to you the phases it has to go through. A startup is not an established business aiming to provide a new product or service to the actual and potential customers. It’s quite the opposite – the outstanding idea which has identified a market need, has to be commercialized. In other words, it needs to be executed and monetized or funded to enter the market.
Usually Venture Capitalist (VC) or other investors, support new entrepreneurs with the needed capital for building their Minimum Viable Product (MVP), which is nothing but the first presentation of the market with what it missed (aka the great/innovative/more efficient idea).
This testing phase is challenging, because it requires the assessment of your customers’ traction. If they like it, the Startup has secured its first potential clients. If they don’t, the founder(s) will go once again to the scientific method approach, test, pivot and do whatever necessary to adjust to the customer feedback – if the effort is viable.
We will elaborate the following paragraphs with the assumption that, the KPIs (Key Performance Indicators) of the Startup – show a positive growth towards the founder’s main goals.
So, with a visible welcomed product in the market and growing and recurring number of customers, we have reached what the startupers consider as the peak of their idea, or to be more precise the Scale Up phase. At this moment the “great idea” is not an idea anymore, and the startupper establishes his/her business.
We will not end this post by saying “Hopefully this happens to your Startup” because there are no hopes, only actions (as we’ve been told and now we practice it).
Now, it’s your turn to go out there and pitch your investors, so we can revolutionize the entrepreneurship environment together! If you need some legal advice – check out Legit, of course!