How to set up an innovative start up

• MANFR ED I CALA M A I •

ONE

On December 19, 2012 the law n 째 211/2012 came into force, converting the Decree Law 179/2012, also called Decree Law Growth 2.0, with which the State has adopted a legislation for the development and growth of the country.

In particular, Section IX is devoted to a new type of business: innovative start-ups.

It is a corporation under the Italian law, or an European company, established for tax purposes in Italy, that meets certain requirements and that has as sole or predominant goal: the development, production and marketing of innovative products and services with a high technological value.

No set up costs and no stamp duties and fees paid for issuing documents.

Fast track acces to the Fondo Centrale di Garanzia • incentives • crowdfounding.

Special financial instruments for debt management • simplyfied procedure for bankruptcy.

Can hire trought fix time contracts • renewable fix time contracts • can remunerate with stock options and work for equity.

TWO

Everything starts with an idea, in must be a great idea, you have to believe in it and it must solve an actual problem or necessity.

Take as an example Jobs and Wozniak, they wanted to create a better computer, suitable for personal use, by the time there were only professional computers. Wozniak pointed out a problem, and wanted to solve it.

Sometimes it’s not about creating something brand new, you can also improve something that already exists.

This is what Drew Hudston did with Dropbox, the online backup market was crowded, but the services offered were hard to use and took a long time to register.

Drew simply simplified the use of this service, now Dropbox is the market leader with a value of hundred of milions of dollars.

Don’t fall in love with your idea • look at it critically • analyse every aspect.

THREE

The best way to start faster than you think, is to “materialize� your idea, you can either make a prototype or a MVP (Minimum Viable Product).

This is helpful to definitively evaluate the idea and most of all to test it on a small group, which eventually can be your first customers and evangelists.

YOU CAN’T DO IT ON YOUR OWN!

Sometimes some help is useful, there are may ways to get helped:

Project coaching is a professional consulting activity, providing developmental support, with the goal of improving project management capability.

Business incubators are programs designed to support the successful development of entrepreneurial companies.

Successful completion of a business incubation program increases the likelihood that a startup company will stay in business for the long term.

Seed accelerators are a modern, for-profit type of startup incubator, supporting them with funding, mentoring, training and events for a definite period (usually three months), in exchange for equity.

FOUR

Being prepared to face difficulties and problems is the best way to solve them.

In order to be prepared the first thing you need is a global vision, which means that you have to know where you want to go and how. You have to decide what’s the attitude of your company and act accordingly.

The first thing you’re going to need is a logo and a pay off that reflects the nature of your enterprise.

This is a vital decision because a good branding strategy can help you to be distinguish in the crowd.

Another key aspect to increase one’s popularity and be known by eventual future investors, is that of being social and demonstrate how the mission of the project is taken into serious account.

FIVE

Start-ups win in speed.

You’re going to need a business plan or a business canvas model, which describes the rationale of how an organization creates, delivers, and captures value.

It concerns several aspects:

01. value proposition: The collection of products and services a business offers to meet the needs of its customers.

It's what distinguishes itself from its competitors.

02. customer segments: A company must identify which customers it tries to serve.

03. channels: Effective channels will distribute a company’s value proposition in ways that are fast, efficient and cost effective.

04. customer relationships: To ensure the survival of any businesses, companies must identify the type of relationship they want to create with their customer segments.

05. revenue streams: The way a company makes income from each customer segment.

06. key resources: Are the assets required to offer and deliver value proposition to the customer.

07. key partners: organization usually cultivate buyer-supplier relationships so they can focus on their core activity.

08. key activities: The most important activities in executing a company's value proposition.

09. cost stucture: This describes the most important monetary consequences while operating under different business models.

It’s helpful to keep all the legal documents in order and to spend some time discussing on the society constitution.

This might come in help in case of future acquisitions.

SIX

Nowadays there are many new communication channels, e.g. blogs, social networks, streaming and so on; on one side, this increases the chances of being known, but on the other side, choosing the right channels and manageing them has become crucial.

How to stimulate the interest of the media

There are some tricks to raise medias attention, in first place you have to have a story to tell.

Storytelling is one of the most relevant aspects of modern communication.

Especially at the beginning, media’s attention is not easy to get, one way to stimulate their attention is to offer an exclusive.

You can either challange the market leader.

Media loves the David VS Goliath story: that’s what Bill Clerico and Rich Aberman did with WePay, an alternative to PayPall.

During a PayPall convention they threw a block of ice full of money in front of the auditorium, to represent the fact that PayPall used do freese user’s accounts.

Before doing this they allerted all the media.

Buzz, Buzz, Buzz It’s crucial that people talk about you, being misterious and plump rumors is a good way to get the job done.

Take as an example Apple, they are masters in doing so, by strategically planning the release of new products (IPods in fall, IPhones in summer and IPads in winter) they have created expectations and everytime before the period of a new release rumors are very strong.

They also have a “twitterable” theme, like: Apple reinvents the phone.

SEVEN

Yes, you’re going to set-up your start-up because you want to change the world with your product or service, but to do so you have to gain some money!

Where do they come from?

You can gain money either from your customers or from funding (when you’ll feel ready to expand).

Funding is a foundamental aspect for the wellness of a start-up, therefore you have to be prepared and timed; funds are useful to hire new employees, be sure the people that work with you suits your vision and way to do.

First thing, you should start looking for funds at least 5 months before your finances end, than keep in mind that investors are not keen in boring business plans, they are more interested in people, START-UPS ARE MADE OF PEOPLE!

BIBLIOGRAPHY:

• Start-up course presentations, Frieda Brioschi • Startup vincenti, Jason L. Baptiste • startup.registroimprese.it