How to Start a Startup: 16+ Tips from Founders

The journey of a thousand miles begins with a single step, but that step is far from easy. Many aspiring entrepreneurs get stuck in endless research, overwhelmed by the advice of “gurus” who haven’t actually started a successful business. Foundr helps to bridge this gap by sharing actionable advice from real founders who have already navigated the challenges of starting a startup.

How to Stop Waiting for Investors and Capital

One of the biggest obstacles for aspiring entrepreneurs is the belief that they need massive funding to get started. Jaime Schmidt, founder of Schmidt Naturals, provides a powerful example of how to start small and bootstrap your way to success. She began her business with only $35,000 and a newborn baby, creating her products at home and selling them at local farmers' markets.

• Focus on building a great product or service. If it's valuable, the money will follow.
• Learn to be frugal and strategic with your spending.
• Don't be afraid to get creative and find ways to make things work with limited resources.

How to Be Persistent in Entrepreneurship

Persistence is a key ingredient in entrepreneurial success. Yoni Assia, founder of eToro, understood this early on and relentlessly pursued opportunities, even if it meant bombarding potential mentors with messages. His persistence led to a dinner with Warren Buffett and ultimately helped him scale his business to $5.5 million in revenue during its first year.

• Be clear about your goals and be persistent in pursuing them.
• Don't be afraid to ask for help and advice from mentors and industry leaders.
• Be open to feedback and be willing to adjust your approach as needed.

How to Find the Right Problem and Solution for Your Business

One of the best ways to find a successful business idea is to identify a problem that you or others are experiencing and create a solution. Gail Becker, founder of CAULIPOWER, discovered a need in the market for healthy, gluten-free food options when she realized the frustration of finding quality options for her children with celiac disease.

• Think about the problems that you personally experience or that are common in your industry.
• Look for solutions that are simple, effective, and solve a real pain point for customers.
• Don't be afraid to innovate or improve existing solutions.

How to Place a Financial Wager on Yourself

The decision to start a business is often accompanied by financial risk. It requires faith in your idea and the willingness to invest your resources into it. Nathan Chan, founder of Foundr, put his money where his mouth was when he started Foundr Magazine, investing $2,000 of his own money to build the app.

• If you truly believe in your idea, you should be willing to invest in it.
• Don't be afraid to make sacrifices and take calculated risks.
• Remember that investing in yourself can be a rewarding decision.

How to Make Sacrifices for Your Startup

The early days of a startup are often demanding and require significant personal sacrifices. Leila Janah, founder of Samasource, faced many challenges during the early stages of her business, including sleeping on a friend's futon and eating Top Ramen. But her dedication and perseverance led to significant social impact, helping over 33,000 people in East Africa, India, and Haiti move out of poverty.

• Be prepared for long hours and difficult decisions.
• Don't be afraid to ask for help from friends, family, or mentors.
• Remember that the sacrifices you make in the early days will be worth it in the long run.

How to Ignore the Naysayers

Entrepreneurship is a challenging path, and you'll likely encounter doubters and naysayers along the way. Darrell Wade, co-founder of Intrepid Travel, faced skepticism from industry experts when he started his business, but he refused to let their negativity deter him. His persistence paid off, and Intrepid Travel has grown into a successful company that takes hundreds of thousands of travelers to over 120 countries each year.

• Do your research and trust your instincts.
• Don't let fear or negativity stop you from pursuing your goals.
• Focus on building a strong team that shares your vision.

How to Get Started and Learn as You Go

It's easy to feel overwhelmed by the prospect of starting a business. You might think you need to know everything before you can get started. Melanie Perkins, co-founder of Canva, encourages aspiring entrepreneurs to just take the leap and learn as they go. Canva has become a major success with 8 million users, a $233 million valuation, and a team of top investors.

• Take action and get started.
• Be open to learning and adapting as you go.
• Surround yourself with people who can mentor and support you.

How to Build Trust and a Network

Building strong relationships is essential for entrepreneurial success. James Beshare, CEO of Tilt, understands the importance of a network, noting that trust and relationships are key to attracting investors, co-founders, and employees. He emphasizes the importance of proactively investing in building genuine connections.

• Start building your network early and invest in genuine relationships.
• Attend industry events, join online communities, and connect with mentors and other professionals.
• Give back to the community and offer your help to others.

How to Validate Your Business Idea

Don't assume your idea is great until you've validated it with potential customers. Rob Walling, co-founder of Drip, took a proactive approach by finding 10 people willing to pay for his product before he even built a website or landing page. He knew that validating the idea was essential before investing significant time and resources.

• Test your idea with potential customers before you invest too much time or money.
• Get feedback and make adjustments based on customer insights.
• Remember that a validated idea is much more likely to succeed.

How to Protect Your Equity in Your Startup

VC funding can be attractive, but it comes at a cost. You're often trading valuable equity for capital. Vishen Lakhiani, founder of Mindvalley, prioritized protecting his equity by bootstrapping his business in the early stages and being mindful of who he partnered with.

• Be selective about who you share equity with.
• Consider alternative funding options to minimize dilution of your ownership.
• Remember that equity is your future wealth.

How to Know Your Customers

Understanding your customers is critical for building a successful business. Georgina Nelson, founder of truRating, went to the streets to interview potential customers to learn about their wants and needs. This direct engagement helped her validate her idea and gain valuable insights for building her product.

• Conduct market research and gather insights from your target audience.
• Interview customers, run surveys, and gather data to understand their pain points, desires, and motivations.
• Remember that customers are the foundation of your business.

How to Treat Your Customers as Your Boss

Kendra Scott, founder of the Kendra Scott jewelry empire, emphasizes the importance of treating customers like the boss. She believes in being deeply connected with her customer base and even walks the floor of her stores to understand their experiences and needs.

• Always prioritize customer satisfaction and build a strong brand experience.
• Go the extra mile to exceed expectations and create loyal customers.
• Remember that your customers are the reason your business exists.

How to Trust Your Gut

Suneera Madhani, founder of Stax, learned the importance of trusting her instincts. She received a lowball offer from investors and rejected it based on her gut feeling. This decision proved to be the right one, as she later received a much better offer that valued her company at over $1 billion.

• Don't discount your intuition.
• Listen to your gut and make decisions that feel right for you.
• Be prepared to walk away from deals that don't feel right.

How to Keep Things in Perspective and Give Back

It's important to maintain balance in your life and not let your business consume you. Nick Molnar, co-founder and CEO of Afterpay, emphasizes the importance of prioritizing family, friends, and personal passions. Mike Evans, founder of Grubhub, highlights the importance of giving back and using your success to make a positive impact on the world.

• Don't neglect your personal life and the things that are important to you.
• Use your success to give back to the community and make a difference.
• Remember that entrepreneurship is a journey, and it's important to enjoy the ride.