Starting a pre-revenue startup can be a challenging but exciting journey. According to a study by CB Insights, 35% of startups fail because they were unable to identify and target a market for their product or service (e.g. no market need). This makes it all the more important that pre-revenue startups make sure they do what they need to do in those early stages. The following is an ultimate guide for a pre-revenue startup to help navigate the initial stages of starting a business:

• Research and validate your business idea: Conduct thorough market research to validate your business idea and gain a deep understanding of your target market. Identify your target customers, their pain points, and the solutions your business can offer.
• Develop a business plan: Create a clear and compelling business plan that outlines your company’s value proposition, target market, and financial projections. This will serve as a roadmap for your startup and help you secure funding.
• Build a strong team: Assemble a team of individuals that you can reach out to (or have them join your team) with the necessary skills and experience to execute your business plan.
• Secure runway: Pre-revenue startups typically rely on equity financing, debt financing, or a combination of both. In other cases you might be fully bootstrapped (e.g. self-funded). Make sure you have at least six months of runway so that you don’t get sidetracked by sudden cashflow needs that require your attention.
• Develop a minimum viable product (MVP): Create a MVP that can be used to test and validate your business model with customers so that you can start generating proof points. This will also serve as a proof of concept for potential investors.
• Establish a strong online presence: Build a website and create social media accounts to start growing an online presence. This will help you connect with customers, partners, and investors.
• Build relationships: Network and build relationships with other entrepreneurs, mentors, and investors. These relationships can provide valuable insights, advice, and opportunities for growth.
• Create a financial model: Create a financial model to track your progress and measure performance against projections. This will help you understand your startup’s financial health and make informed decisions.
• Continuously review and adapt: Continuously review and adapt your business strategy based on feedback and market trends. Be prepared to pivot if necessary to ensure the success of your startup.

Keep in mind that starting a business is a dynamic process and pre-revenue startups should be prepared to adapt and evolve as they move forward. It’s important to seek guidance from mentors and experts in your industry to ensure the best chance of success. Don’t have the time or knowledge to build your own financial model? Easily reach out via Numberly.io and we have finance and business experts ready to help you right away.