Starting out. What do I do first?

I would recommend following the Lean Startup model for your first business. This will generally keep you on track and prevent many of the first timer mistakes. Here is a great overview from Ash Maurya.

Before my first startup my background was as a software developer and this really constrained the way I viewed the world. I spent years trying to code solutions to business problems, but that does not work. I just ended up very tired and frustrated.

The Lean Startup model however limits new feature development to 20% of your time. This corrects the tendency to "code solutions" by forcing you to fill the other 80% with learning, product/market fit, marketing, sales, customer research, etc. This will encourage the learning that you will need to do to succeed.

You are starting in the right place with the OnStartups community!

First of all, do a research about the idea itself.

There is always a possibility that the idea may already be implemented somewhere. You must do a full SWOT analysis before you take the plunge. Otherwise you would burn your fingers very badly.

I had a few ideas in my mind and was under the impression that these ideas are unique and haven't been implemented. But I was wrong.

To my surprise one of my ideas has already been implemented. For the other, it's not yet been implemented (at least, I'm not aware yet). But after a thorough research, I found that, these ideas have already been patented :(

I would suggest that you just go for it; figure out an idea and just start. If you've got a friend/ cofounder that's even better.

I've heard of a lot of startups (PayPal, Flickr, Blogger) that started off with one idea and eventually ended up on another. So, whilst the idea is important, I wouldn't say that it's the most important - You've just got to want it bad enough!

You've done the first step! keep at it, ask, ask and ask some more... then start executing some of the ideas you have, even if they seem to be crazy, just do it. Just trying and executing various ideas would give you confidence and experience to hopefully attain success one day.

You've said you have an idea for a software company, are you a programmer? if you are then start building your prototype, if you are not a programmer then start looking for someone to help you with this, my advice is to not think too much about it but instead start working on it, on the idea.

Good luck!

1. Just do it.
2. Expect that you will screw up many things.
3. Don't die.

I used to work in 2 startups and read many books about the topic before I started my own venture. There is a limit on how many "22 common mistakes of startups" or "14 tips on how to start a startup" articles you can read. At some point, you need to jump off the cliff and learn how to assemble your plane in real.

There are only a handful of things you don't want to screw up. On top of my head: picking who are your investors and cofounders (do vesting - 4 years 1 year cliff!).

The rest are reversible decisions. Get mentors and surround yourself with people who have more successful experience in the journey. They are the one that will point you out when you screw things up on no 2 above and helps correct the trajectory.

Hope that helps.

Sandeep made an important point - First, find out if it has already been done. Even if it has, there still may be some opportunity, but only if you can successfully differentiate yourself from the competition (such as a difference in your actual product or target market) and also have a competititve advantage (i.e. - better funding, better marketing plan, more profitable business model, etc). Great businesses are the product of many great ideas. Keep a note pad with you and jot down every great idea that comes to mind regarding your business. This will help you form your business plan and business model.

Second, find out if there is a strong market for your product. Have you heard the saying, "Nobody gets paid until something is sold". Start with your immediate network of close friends, family, advisors, and other contacts. Share your idea, get their feedback and ask them to challenge you. You might be surprised at what you learn. Then perhaps informal or formal surveys can also help you determine the market. Pilot programs are used to test market products in small geographic or online communities with the proportionate level of marketing investment. This will give you an idea of the strength of the market for your product before a large investment is made.

These things will give you a good foundation for building your business model. Third, put together projected income statements given assumptions about volumes of units of sales, prices and estimated costs. You will use this to create a break even analysis and a projection with target dates for various levels of sales volume to show at what point the business will become profitable. This is key because you will then have to determine the amount and source of funding until that point and beyond.

Feel free to give me a shout if you need me to explain or expand on anything mentioned. -ghippe@smartfinancials.net. Good luck!

Look up some resources on writing business plans, and entrepreneurship. There is an art and process to successfully building a company and startup, and it's a very different game depending on if you want to make a scalable company or a small busienss.

The best thing to do is to learn a bit more about the business side of things, and how you can grow, while you get started on making a useful prototype of your software.

Good luck!

I am currently acting on an idea for a SaaS application. So, I am going to expand on your question since it is the same question I have. I think you are looking for definitive steps. So let me expand...

What do I do first i.e. Do I create a business plan first? Do I purchase a domain name first? Do I try to find a software developer first? Do I write a SRS first? Do I form an LLC first?

So, I am probably not doing this in order, but since no one could give me definitive steps, I took some seemingly logical steps for myself:

1. I asked collegues to recommend a software developer, since I am not a developer (I am just the "idea person"). Once I found one that was a good fit, I met with him, signed a NDA, and then we discusses how executable my idea was. It was great to talk to him to give substance to my idea.
2. I decided on a bought my domain name. This seems to be one of the keys to securing your name and TM.
3. I am now creating a business plan. The Lean Business model is a good one, but not ever having created a business plan before...there is not a template on the web that I have found that specifically says "Lean Model Business Plan Template". So, I went to the SBA (Small Business Association) to use their interactive template. We'll see how that one goes. I am not forming LLC just yet, as I have no liability without offering the product.
4. I will be signing an Independent Contractor contract with my developer so that we can defineo our terms. He has chosen to accept a % of profit rather than an hourly compensation up front.
5. I will create a website, and then once the "company's" reputation is established, then we will introduce the software.
6. In the meantime, I will also be doing a SWOT (Strengths, Weaknesses, Opportunities, Therats) analysis (guidelines can be found on the web). I will also be trying to create the SRS (Software Requirements Specs). Along with a template from the web, my developer will assist me with this.

I agree completely with identifying mentors, those you know who have connections or have done some of the things you are trying to do. I have contacted one for the developer recommendation, and one for startup advice and a good small business attorney just to help initially with paperwork for trademarks, copyrights, contracts, and eventually LLC filing.

So, those are the actual steps I am taking. I would love to have feedback on whether or not these are the correct steps, if they are in order, and if I am leaving something critical out here at the beginning.

I would spend some more time in the workforce. It's generally a good rule to have some idea before embarking on something imho.