The document discusses how to build a successful startup, highlighting key topics such as differences between small businesses and startups, securing funding, generating ideas, and pitching to investors. It emphasizes the importance of understanding market needs and planning for failure, noting that many startups fail within five years due to lack of market demand. Additionally, it outlines the necessity of having an exit strategy and describes how Flickr successfully pivoted from a gaming platform to a photography site.

1. How to
build a
successful
startup?

2. What topics we will
discuss on:
• What's the difference between Small Business And Startup?
• How to get startup funding from investors?
• How to generate good ideas for a startup?
• How to pitch your startup idea to potential investors?
• Why 90% startup close down within the first 5 years?
• How do investors get their money back from startups?
• Why exit strategy/PLAN B is needed to rescue you from a startup
failure?
• How PLAN B rescued Flickr from failures?

3. What's the difference between
Small Business And Startup?
• A small business is an autonomous entity that generates revenue from the first
day of its opening. They don't need substantial investment and time to build a
working company,
• Typically, a small business brings a comparatively small amount of sales, enters a
local or regional sector, and has a small number of employees. For example- a
cafe, a restaurant, and other types of hospitality businesses come under Small
Business,
• While there are no stringent rules to determine what startup is, the general
definition of a startup is any company that is in the early stages of operations but
expects significant growth in the near future.

4. Investors usually ask five questions before they
decide to invest in your startup.
• What problem are you solving? What is it exactly
you're solving?
• Whose problems are you solving? Who are your
customers/target audiences?
• Who are your competitors?
• How are you better than your competitors? How
are you faster than them? How are you better
than them and cheaper than them?
To get funding from investors, one need to prepare
answers for these questions that can impress the
investors.
How to get
startup
funding from
investors?

5. How to generate
good ideas for a
startup?
The best way to develop a sound
startup idea is to:
• Find out everything you can about
the industry where you want to
pursue a startup,
• Speak with as many target
consumers as possible,
• Identify a common problem among
your target market,
• Think of business ideas to solve the
problem,
• Brainstorm to uncover the strengths
and weaknesses of your solution,
• Settle on an idea,
• Take the next steps towards
launching your startup.

6. How to pitch your startup idea to
potential investors?
• The first step is to nail your elevator speech. Your elevator speech is a 30 second
or less summary of what you do. It should explain everything someone would need
to know when they first meet you.
• Before doing your pitch, do some research on who you'll be presenting to. Good
sources to find out about angel investors are AngelList, Flashfunders, and
SeedInvest.
• When you're pitching to investors, you need to provide factual data. Investors care
about what you've already accomplished and how that can make them a profit in the
future.
• Know your revenue model. A revenue model, or business model, just means how
your company plans to make money and be profitable.

7. Why 90% startup close down within the
first 5 years?
• Startups often collapse in the first 5 years because founders and investors hesitate
to look ahead and plan ahead without taking the time to recognise that the basic
premise of the business plan is incorrect,
• They assume that they can forecast the future rather than attempt to build a future
with their customers.
• Entrepreneurs appear to be one-size-fits-all in their strategies — wanting the
company to be all about technology or all about revenue, without having time to
come up with a balanced strategy,
• Fortune reported the "top reason" that startups fail: "They make products no one
wants."
• A careful survey of failed startups determined that 42% of them identified the "lack
of a market need for their product" as the single biggest reason for their failure.

8. How do investors get
their money back from
startups?
• The investors who invest their money in any company in the
form of equity receive:
• Annual Dividend
• Interim Dividend
• The annual dividend is the dividend which is declared once
in a year. An interim dividend is a dividend that is declared
anytime in the year.
• Other than that, shareholders can sell their shares anytime
when the price increases.

9. Why exit
strategy/PLAN B is
needed to rescue
you from a startup
failure?
• Your exit strategy/PLAN B is crucial
because it helps you define the
success of your company. When
entrepreneurs have not formulated an
exit plan, it could be an indication that
they are not focused on the potential
transformation of the company.
There’s a saying among venture
capitalists, “It’s easy to make an
investment, but how do we get out of
it?”
• And investors don’t want the exit plan
to be complicated or messy.
Essentially, having a harvest goal and a
plan to achieve it is what distinguishes
successful entrepreneurs from the rest
of the group.

10. How PLAN B rescued from
failures?
• Today, we associate Flickr with high-quality online photography, much of it
available for sharing on the Web via a Creative Commons license.
• Yet, when Flickr first launched in 2004, it was something very different – Game
Neverending, a massively multiplayer online role-playing game from Ludicorp that
enabled users to buy, sell and make items, plus navigate a map and interact in real-
time with other users.
• And of course, the role-playing game included a popular photo-sharing tool that
eventually became the basis for Flickr.
• The popularity of that feature convinced Ludicorp to concentrate specifically on
online photography. That Flickr was able to transform a confusing mix of features
into a viable product paved the way for its acquisition by Yahoo in 2005.

11. Want to
know more?
Startups are changing the world by
developing a fast-learning environment
with a secure opportunity for failure in
a competitive, fast-moving market.
It's about the sweet spot of cultivating
the client, but it's also about employee
satisfaction. Fast thinking means quick
change, which is how startups
transform the world by being 20 steps
ahead.
For more information, watch my
Youtube Video by clicking the link in the
description box:
https://youtu.be/hhVyOxrePAs