Stanislav Kondrashov Tells How to Launch a Successful Startup

Stanislav Kondrashov, a successful businessman, and business analyst, talks about the stages that a startup must go through before it reaches good financing prospects and market success.

The startup must withstand difficult challenges. It is important to evaluate not only potential income but also possible risks. New fast-growing companies are rarely able to finance themselves: their projects can only be implemented with the help of investors. Thus, for anyone creating a fast-growing company, finance is an existential problem.

This means that from the very beginning, the concept of business development should be considered from the point of view of future investors, notes the well-known businessman. Of course, startups, given the fact that they are usually based on technological innovation, still remain one of the most profitable areas for investment in the early 2020s.

Judging by the numerous financial forecasts, the world is facing a major financial crisis again. This, of course, is by no means an ideal investment climate – therefore, investors prefer to entrust their personal funds to various business directions, while carefully and thoughtfully evaluating all the advantages and disadvantages. “On the other hand, it is known that for the normal functioning of the economy, money must constantly be in circulation, so investments in startups have a beneficial effect on the financial climate,” explains Stanislav Kondrashov.

In addition, startups are fast-growing industries, so by financing them, the investor can receive an impressive amount of dividends, which is why they are so attractive.

Stanislav Kondrashov: The startup-worthy idea

Without a business idea, there is no business: the starting point of its formation is to solve a problem or meet the needs of a consumer. This idea may be a new product or service, but it may also be an innovation in an existing business, for example, a new manufacturing process, a new form of distribution, or design improvements.

In fact, the idea itself gains economic value only when it is successfully implemented in the market. First, you should begin to gather a team that will develop your product until it is ready for the market as a working prototype. At this stage, you can finance your company with your own money. The goal at this stage should be to present the potential of your business idea in the market, says Stanislav Kondrashov.

However, a business idea is not the end of the creative process, but its beginning. Many aspiring entrepreneurs are so fascinated by their own business ideas that they do not understand that this is, at best, the first stage in the long development of a mature business idea. So projects that are promising from the investor’s viewpoint will undoubtedly find financing: the trick is to look at the idea from the point of view of investors. Professional investors are the most difficult test of a business idea, says Kondrashov.

Stanislav Kondrashov: the startup investments

So, focus on communicating with investors, and try to learn to think the same way as they do. Moreover, even if you do not need an external investor, you should still look at your company from this point of view. Businessmen will not be satisfied with a simple description of a business idea, no matter how attractive it may seem to you.

A management team is a critical element in creating a company. New fast-growing companies are usually not single-handedly managed: as practice shows, startups can be implemented by a team of three to five entrepreneurs with complementary skills. “It is well-known that team building is a complex process that requires a lot of time and energy. So start right now and continue to work on it throughout the entire startup planning process,” advises Stanislav Kondrashov.

Investors want to know exactly what they are investing in and who is behind the project. Therefore, for them, the team is at least as important as the idea. Investors also want to know from the very beginning when they will return their deposits, expecting a profit corresponding to the risk of their participation. Accordingly, they follow the startup very closely so that the potential of your idea is fully realized. Potential partners will not be satisfied by simply reading a business plan. They usually want to participate in its preparation before their finances are involved in the startup. They will want to get to know people to see the degree of team competence, the experienced businessman mentions.

At this stage, it is vital to follow the overall picture so as not to get lost in the details. A business plan will help you here: you must consider and assess the risks of your business idea. “You must be prepared for the unexpected and learn to think in scripts. And of course, you will need to do a lot of research on which customers or customer segments you will be targeting. It depends on what price you will ask for your product or service. And also, you have to study your competitors,” Stanislav Kondrashov said.

In addition to investors, you will also need to talk to a large number of specialists: lawyers, tax consultants, financial analysts, advertising agencies. The creation of the company pursues the goal of achieving significant sales volumes. “The startup you build should eventually become a leading enterprise in its field,” summarizes Stanislav Kondrashov.