Becky Center, the CEO of Indiegogo, a crowdfunding platform that connects innovators with early adopters, discusses the increase in new business applications in the US. According to Census Bureau data, there has been a 62% rise in applications compared to the same period in 2019. This surge can be attributed to the post-pandemic environment and the desire for individuals to pursue their entrepreneurial dreams.
Center provides a guide for aspiring entrepreneurs on overcoming the challenges of starting a business. She emphasizes the importance of focusing on the problem that needs to be solved rather than solely focusing on the benefits of the product or service. Conducting thorough research on consumer behavior and existing solutions is crucial for informed decision-making.
Another strategy Center suggests is finding a co-founder who has previous experience in starting a business. Partnering with someone who has already gone through the process can help avoid unnecessary mistakes and failures. It is important to choose a co-founder who offers different perspectives and creates a balanced partnership.
When it comes to funding, Center recommends bootstrapping through personal funds, friends and family, angel investors, or crowdfunding. She highlights the benefits of crowdfunding as a way to secure initial investors and gather feedback from passionate supporters.
Center also advises entrepreneurs to outsource tasks to subject matter experts in areas such as marketing, accounting, and legal advice. This allows entrepreneurs to focus on developing their product or service.
Creating a product/marketing launch plan is crucial for successful business development. Center suggests identifying channels for reaching potential customers and considering collaborations with influencers or like-minded organizations. Choosing an ecommerce platform that handles financial transactions can simplify the process.
Once the business is up and running, Center emphasizes the importance of learning from the first paying customers. Collecting feedback and implementing improvements based on customer input helps build a loyal customer base.
Finally, Center discusses raising the first institutional round of funding. To attract venture capitalists, entrepreneurs should demonstrate high growth potential, good management, a large and growing target audience, market penetration, a scalable business model, robust technology, and a strategy to address competitive threats.
In conclusion, starting a business comes with various challenges, but anticipating and addressing them can increase the chances of success. Center advises entrepreneurs to approach it as a marathon rather than a sprint.
