The ultimate guide on whether to launch a startup in 2024 2025.
The Spark
When I was 10 years old, I had an idea for a new board game. Every kid would LOVE it. I built a prototype, the small figurines, the differently colored squares on the board, the cards with impossibly complicated rewards and punishments. I even came up with a name that would sell well in stores. That was until I found somebody had beaten me to it. My entrepreneurial dreams had been shattered, but I could never forget how amazing that spark felt. I knew my life was about chasing those wild ideas, no matter the cost.
So why swap a cozy job for the chaos of a startup? Simple: there’s no rush like seeing your idea come to life. Having your own business means that you have autonomy and creative freedom and can make an impact on the life of so many people.
Without that initial spark, how can you make a fire?
But Why a Startup?
Think that big companies have the upper hand? Nope, they’re slower than a sloth trying to get a drink at a bar.
Startups, defined by their focus on a single idea or business model, implement new ideas much faster because they simply have nothing to lose. They don’t have a colossal brand to protect or layers of bureaucracy to wade through.
However, it’s how well they implement the idea, how quickly and accurately they target their audience, that really matters. Quality execution wins, not just a stellar idea.
Startup Mania is Real! Recent global data shows university students are ready to hustle:
- 11%: Already rocking their own businesses while studying (talk about multi-tasking!).
- 18%: Planning to go full-on entrepreneur right after graduation (no time for a “real job,” eh?).
- 32%: Eyeing entrepreneurship within five years of graduation (they’re playing the long game).
Early-stage startup investments surged from $72.8 billion in 2017 to $208 billion in 2021.
Alright. Let’s be honest here and not pick only optimistic facts:
- In 2022, the trend reversed, declining to $462 billion, a 38% drop.
- By 2023, global startup investment further declined to $285 billion.
- So, recent economic challenges and geopolitical tensions have made investors more cautious.
But! Emerging technologies like AI continue to attract significant investment.
And after every downturn—be it economic, social, or personal—comes a rebuilding phase where creativity thrives, opportunities multiply, and bold new ideas take the stage.
Unleashing Your Potential
Brace yourself; entrepreneurship is tough. Long hours, massive responsibility, and years to see rewards. Sounds delightful, right?
But the startup advantages are unbeatable:
- Autonomy and control
- Impact and legacy
- Creative freedom
- Financial rewards
- Personal growth
Having your own business means you make the calls, solve the problems you care about, leave a positive mark on the world, innovate without bureaucratic BS, make a ton of money, and grow as a person.
That doesn’t mean you can do anything you want. Want a vacation anytime? Sure! Stay on vacation when the company’s sinking? Hell no.
If you want to be successful, you have to focus on the needs of users, not you. Without a user-centric approach, you’ll alienate new customers, like bad breath in an elevator. Being your own boss doesn’t mean you’re not obligated to the market, clients, and your team.
Embracing the Unknown
If the board game had gone big at 10, I’d have crumbled at the first problem. Seriously.
In business, surprises lurk around every corner. The right startup mindset? Solid. You’re not running to Mommy, at the first sign of difficulty. You’re forging ahead like a fearless warrior who has:
- Grit and resilience: The ability to persevere through setbacks and challenges.
- Adaptability and flexibility: The willingness to pivot and adjust plans as needed.
- Continuous learning: Embracing a growth mindset and constantly seeking knowledge and improvement.
- Passion and purpose: Fueling a conviction in your mission and the value your business is creating.
You can’t run away when problems arise, and there is definitely no one to run to. You. Are. On. Your. Own. Feels like sinking without a lifebuoy? Welcome to entrepreneurship! It’s going to be one hell of an emotional rollercoaster.
Assess yourself honestly. Which traits propel you? Which hold you back? It’s okay to not feel you’re completely ready to be the big boss right now. Find the areas you can improve in and have a plan to get better in those. For example, I don’t wet my pants anymore when the market declines because I’ve become more resilient and adaptable to those changes.
The best entrepreneurs embrace hardship over a comfortable life. Get out of your comfort zone. Hunger breeds innovation, so you need to put yourself in that position to reap the big breakthroughs.
So, let your passion fuel you to tackle real problems that bug people. These can range from huge global messes (like climate change) to everyday annoyances (like that annoying app that never works).
Juggling a Job and a Startup: How to Not Lose Your Mind
Trying to be a corporate superstar and a startup rockstar? It’s possible, but it’s all about smarts and not going completely nuts. It starts with figuring out what makes you tick and how that fits with your current gig. Juggling a job and a startup can work but be smart about your time and money.
- What Gets You Fired Up? Are you obsessed with solving a problem? Or did you spot a gap in the market that’s begging to be filled? See how this fits with your regular job.
- Time and Money: Be real about what you have. Can you handle your bills while you’re playing the startup game? Maybe start your business as a side hustle while your job keeps you afloat.
- Test the Waters: The cool thing about juggling a job and a startup is that you can try out entrepreneurship without going all-in right away. It’s like having a safety net, but still feeling the thrill.
- Realistic Milestones: Set some goals for your startup. If things are taking off, you might want to switch more time and energy into it. If it’s not working, you still have your job to fall back on.
- Non-Linear Paths Rock: Career paths don’t have to be straight lines anymore. It’s cool to bounce between entrepreneurship and regular jobs. This can make your journey more interesting and better fit your goals.
The Startup Journey
Whatever your business, there are things you need to get right if you want to see real progress. While this is not a step-by-step guide to launching a startup, here are some startup success strategies:
1. Market research
Think you know your target audience, competitors, and industry trends? Think again. Get down and dirty with market research. Not sure what business idea to go with? Brainstorm supply and demand. Demand is what people need, the gaps in the market where a problem hasn’t been solved yet, supply is the tools and skills you bring to the table. You can find interesting niches for your business by asking what is missing in the market and what you can solve.
Building a startup is like throwing a party – you need to know who to invite!
Ask yourself: “Who’s dealing with this crap?”
- Start with yourself! “What’s Pissing Me Off?” Yes. Many great products were built because people just got fed up dealing with their own problems.
- Look around Your Inner Circle (But Don’t Stop There): family, friends, and work buddies.
- Think about people you run into every day.
- Think where your potential customers gather. Trade shows and conferences give amazing chances to see them in their natural habitat.
- Online communities are your friend. LinkedIn, Facebook, Reddit, X
- Keep your ears open for feedback.
Figuring out who needs your solution is crucial for turning your idea into a cash machine (or, you know, at least a viable business).
Then check what’s Already Out There? Research existing solutions. Are they any good?
Spot the gaps, and see how your startup can do it better.
2. Idea validation
From idea to prototype to launching the product, there’s no point diving in unless there is a real market need. Having an idea isn’t enough. Test it. Validate it. Your product needs to be constantly refined to meet the goals and challenges of potential customers. Make sure you’re actually solving a real problem for them. Time to chat with some folks, not just your own thoughts. 😉
To ensure your startup thrives, begin with customer discovery and validation.
Start with a wild guess. Maybe you think small business owners are drowning in disorganized spreadsheets. Like, they’re practically swimming in cells and formulas. This is your “hypothesis.”
- List about 30 people to ask about their struggles.
- Write down key questions.
- Start asking! Don’t assume!
- You need a mix of opinions.
- Dig into their experiences.
- Take a hard look
Many startups (some of mine too) died due to lack of demand.
Just because the “problem” was not really a major pain point!
3. Building a team
You need a kickass team with complementary skills and a positive company culture. You want to avoid individual limitations hurting the business, so do a deep analysis before launching, especially if you have co-founders. While SWOT analysis is a common framework, I like to use CLEAR (Capabilities, Limitations, Expectations, and Risks). More on that in my Make It CLEAR Course. Shameless plug? Maybe.
Networking also unlocks partnerships, investments, and that co-founder you’ve been dreaming of. Find events and meetups to learn from others’ mistakes and grow your skills. Find those who’ve launched successful businesses. Check hackathons, competitions, and guest lectures nearby. Programs like Techstars and Y Combinator throw parties (well, kinda).
How to Network (Without Being Weird):
- Friendly “Hi!” + quick pitch: “Hey, I’m [Name], working on something cool in [industry]. Love your experience in [specific field]. Coffee this week?”
- Ask killer questions: “Biggest WTF moment?”, “Advice you wish you knew?”.
- Ask for intros.
- Don’t be shy, ask for help!
4. Funding and resources
Before you start throwing cash around like a drunken sailor, you need a plan. How are you going to pay for this thing? Are you going to bootstrap or seek investors? You’ll have to decide how to fund and allocate resources to reach your company’s goals.
Before you even think about funding, understand your finances. What’s coming in? What’s going out? What do you own? What do you owe? Know your profit, loss, assets, liabilities, and the total cost of getting your startup off the ground. This isn’t just boring accounting stuff – it’s crucial!
Again, I’m talking about it a lot in my Make It CLEAR Course. And there are cool templates that help you assess that.
Explore Some Funding Options:
- Free Money (Sort Of): Check out grants from your university or the government. In the US, the Small Business Administration (SBA) and Economic Development Administration (EDA) can be good places to start.
- Investors (aka, People with Deep Pockets): Angel investors and venture capitalists might be interested in your idea (if it’s awesome enough). Accelerators and incubators can also hook you up with mentors, market insights, and maybe even some cash.
- The Side Hustle: Short on cash? Get a part-time gig or do some freelance work while building your startup. Lots of successful entrepreneurs started this way. It keeps the lights on while you’re building your empire.
5. Product development
Developing your product is an iterative process. Start with a minimum viable product (MVP) and then iterate based on user feedback. Build, test, refine. Rinse and repeat. Want more on this? Check out our recent article.
6. Marketing and growth
Craft compelling messaging that hits so you convert leads into real customers. Create a killer strategy to scale up your business. We’ve got a longer article on making a Go-To-Market plan.
Don’t Be an Advice Addict
Too much advice leads to analysis paralysis. Though it’s often beneficial, trying to follow all of it can quickly become overwhelming, especially for small businesses or solopreneurs. They don’t have the time, money, or people to implement it all. The challenge is to figure out which recommendations are truly necessary now and which can be saved for later. Personalized guidance from consulting services or experienced entrepreneurs can help identify these areas.
Heads up, obsessing over every YouTube video doesn’t help. There’s no one-size-fits-all solution. Tailor your strategy to your business stage and needs and take into account positioning factors, like whether your business excels in cost-saving, quality, speed, or flexibility. By setting up basic KPIs from the start, you can properly track progress and make better long-term decisions.
Adventure Time
Entrepreneurship isn’t for everyone. But in my humble opinion, the rewards by far outweigh the challenges.
If you’ve ever felt that spark of a business idea, don’t run away from it. Explore your entrepreneurial spirit and take the adventure of a lifetime. The journey could be the dragon ride of your life, and who doesn’t want to ride a dragon?
Stuck with analysis paralysis? In those moments, no idea will sound like a good idea. Seek validation from a business partner, spouse, close friend, business mentor, you name it. And that’s why I’m here with all the expert advice you need to stay ahead of the game.
Being an entrepreneur is like riding a rollercoaster designed by a sadist. You’ve got the thrill of the chase, but also the constant threat of falling into the abyss.
- The startup journey is a mix of highs and lows. Emotional support helps you handle the insane highs and the gut-punch lows. Your support system (friends, family) helps you turn challenges into lessons.
- Connecting with other entrepreneurs is crucial. They get the unique kind of crazy that comes with this gig. It’s a safe space to vent, learn, and get inspired.
- Seeing a mental health expert isn’t just for when you’re about to crack. It’s about staying sane and dealing with pressure like a boss. This helps keep you from burning out
Emotional support = crucial for survival. Your mental health matters! Don’t go it alone.
Takeaways
It’s going to be tough. But when the going gets tough the tough get going. Make sure to keep these things in mind when you want to join the party:
- Startups implement ideas faster than big companies.
- A great startup begins with a spark.
- Besides money, startups offer autonomy and a chance to make an impact.
- Do you have the right mentality for a startup?
- Launching a business involves lots of research, validation, and team-building.
- Avoid advice overload; focus on what matters most.
- Launching a startup is one hell of an adventure.
