Business 2.0 has a cover story titled “How-to Build a Bulletproof Startup: A 16-Step Plan to Turn Your Big Idea into the Next Google”. Honestly, that is such a load of bull in my opinion. I can’t stand how the media oversimplifies complicated and challenging things. Some could argue that there is a well-known checklist and differentiation is all in the execution. Well, maybe, but I feel that most entrepreneurs improvise at every stage of the game. Whether, that be boostrapping out of their parents house or taking 4 weeks to build a scaled down prototype. No two paths are the same. That’s the great part about it. There really isn’t one road you need to be on to make it to the promised land. If you’re smart and lucky you’ll find some road that leads there or you’ll make one. Anyway, the article is well-written and gives good insight into how much money you’ll need at various stages. Keep in mind that this is just a sample and by no means even a guideline.
Phase 1: Establish a Company ($15K – $25K)
1) Stress-Test Your Big Idea – Get feedback from as many people as possible.
2) Build Your Founding Team – It’s very hard to find great people – especially with the high risk of a startup and probably no money.
3) Draft a Business Plan – Map the market and figure out how you fit in it.
4) Come up with a Name
5) Incorporate
Phase 2: Prototype the Product ($100K – $500K)
1) Intellectual Property research
2) Create an advisory board
3) Build prototype – Build this as quickly as humanly possible. Get it out and get feedback. Use contractors if you have the money.
Phase 3: Develop the Beta Product ($500K – $1M)
1) Start staffing up – Again use contractors or part-time workers if you need to.
2) Assemble your back office
3) Launch beta test
4) Revisit business plan
Phase 4: Launch the Product
1) Build a new board of directors
2) Develop the sales and marketing plan
3) Open an office – Do this as cheaply as possible. You have many other expenses to worry about.
4) Hit the market – Sell, Sell and Sell
