We believe that the future of commerce will be heavily integrated with technology innovation. According to a report done by ICSB, 99.95% of the Indonesian economy contributions comes from traditional SMEs. In addition 97.2% of workers from the Indonesian labor force are employed in SMEs. There’s no doubt that SMEs are the backbone of the Indonesian economy. A report made by Deloitte commissioned by Google reveals that with integration with technology innovation and boosting of digital engagement in the operation of SME businesses will increase the Indonesian annual growth by 2%. Unfortunately, most of these SMEs has not join the digital trend and are reluctant due to the unfamiliarity towards technology. However with the recent success and awareness to local tech startups such as GoJek, Tokopedia and many more, these SME owners slowly shift towards digitalizing their company. However to fully optimize the creation of the new technology sector in Indonesia more startups must arise to fully integrate the Indonesian commerce with technology. Luckily, it is not that hard to convince the Indonesian youth population to join in Indonesia’s infant technology industry. Suddenly the demand of creating a tech startup among the Indonesian youth population starts to rise, however due to their lack of knowledge in creating a startup most are stuck in thinking about the idea of their startup, failing to execute. Due to this our Ideabox team decided to provide our new series, “The Tipbox” where we provide some tips in creating your startup in Indonesia. In this article, we will tell you the 5 things you need to create your dream startup. So what are we waiting for, let’s bring out our inner entrepreneur to reality!
- The Idea, In order to create your startup, you first have to have the solid and executable idea of what type of startup you plan to make. You do this by creating an elaborate and detailed business plan for your startup. Meaning that you have to include your revenue plan, financial plan and other details in your business plan. So how do you make sure that your idea will work? First look at the startups outside Indonesia, is there any that would work in Indonesia? Can you make that idea your own through your own creativity? One of the most important rule for an entrepreneur is to live in the future. You should be able to envision the future, will the idea work in Indonesia? Will it be scalable? Can the idea be a game-changer in the Indonesia? If your idea is something that is missing in the world, find out why hasn’t it been made. Did someone try to make it before in the past? Write it down and ask around in your community. Many may think this is a bad idea as someone might steal your idea. Well, in fact that is the wrong mentality to adopt. Why? If the idea is truly yours, then there is no way they can perfectly execute the idea because they wouldn’t have the same passion for the idea as you did. In addition, creating the idea is probably less than 5% of the whole process in creating the startup. Creating a startup is all about the execution, without execution, the idea is just an idea and nothing more. By asking around and telling others about your startup, you either get more passionate about your startup idea or realize that the idea isn’t worth executing. By talking to others about your idea, your business plan will become more elaborate and detailed by itself as others will give you questions and concerns that you haven’t thought off yet. Do your research! Validate your startup idea through doing a customer and market research. Find out whether Indonesia really need your startup. First you would have to identify your target customer first. Who they are and what group are they in. Then you have to identify them within your community and ask them whether they would be willing to pay in order to purchase your product or service. This is how you would know whether it’s worth it to make your startup. If you’ve done your research without bias and collected a great result, then you can go all out and execute the creation of your startup.
- The Product Make your prototype! Show it to your friends and family, show it to people who are interested in your product, show it to as many people as possible and find out what you can fix to make it better once you’ve launch it to the public. Go to your thinking spot and figure out how you can make your prototype better and more cost-efficient.
- Timing Is it the right time for you to create your startup? Is your target customer educated and ready to make purchases from your startup? Is the economy ready to support your startup (does it have the required infrastructure for your startup to run functionally)? Or has the trend past and your target customer is no longer interested in the industry? Is the industry you’re trying to enter already concentrated? Although many might not realize it, the fate of the lifetime of your startup is highly dependent to timing. Sometimes the best ideas are killed due to it being executed in the wrong timing. Be aware with your industry and trend of the Indonesian economy, this is how you know whether it is the right time to make your startup. Sometimes you have to be patient for the right timing and other times you have to grab the opportunity as quick as possible, you just have to know which action is the right one to take in that moment.
- Finance How will you finance your startup? Nowadays there are so many ways you can finance your startup, the most obvious one is through bootstrapping, which is you using your own savings to pay for the operation of your startup. The second is through getting a loan, you can do this through going to a bank and asking for a loan. You can also go to other sources such as alternative loaning startups to get loans for creating your startup. Third, you can get angel investors to invest in your startup in exchange for shares in your startup. Lastly, you can go to incubator program like Ideabox in order to get funding as well as other resources that will help you build your startup like mentors, free advising services, network and many more.
- Team Lastly and more importantly, you need a compatible and solid team in creating your start-up. Find your co-founder(s), someone that you can share the responsibility in creating your startup with. Make sure you have a team that can cover these areas in creating your startup: Creating your product, doing your marketing, managing the operation, finance and legals, etc. Make sure your team complements each other. Most of the time startups fail due to the wrong team members. Great ideas can fail due to the wrong team executing them. So there we have it! The five things you need to create your dream startup, now time to start taking action and work to create the startup of your dream! For more information about this article or Ideabox, fill in our form in the contact us section or email us in firstname.lastname@example.org.