Despite most startups failing to last more than 5 years, 70% of U.S. job creation is attributed to new and young businesses, according to Intuit. Hundreds of thousands of businesses start up every year, but many budding entrepreneurs struggle with the initial ideation and following funding stages of a startup.
As 2017 draws to a close, a new wave of startups are entering the market. By looking at the trending industries, we can more easily ideate startup businesses. From there, the type of business it is will dictate the best way to fund it. Here’s 3 ideas for a unique startup and how to fund it.
One of the most disruptive emerging technologies set for huge growth in the near future is 3D printing. 3D printing enables mass customisation, and a freedom for people to manufacture things that could never have been made before. There’s a whole range of ways to position yourself within this industry. To begin with, one doesn’t even need a printer, rather people can make and sell designs to be 3D printed. Alternatively, products can be designed and printed at a 3D printing business.
Of course, if you choose to own a printer, you yourself could offer a printing service, or start your own company and design and print your own products. There’s almost endless possibilities when it comes to 3D printing business ideas, the only limit is your imagination, and your wallet, which brings us to our first funding idea.
Funding for startups, especially in an emerging tech space can be difficult to acquire. Traditional loans from banks are almost unheard of, simply because startups don’t have enough collateral. You could however, trade equity or services in return for business help. If you own a 3D printer, perhaps you will let another company print what they need, if they offer you funding, office space or some other help in return. This idea is common in startup circles as most small businesses need to be creative to acquire funding.
Of course, there are many ways to fund each of these examples, and some are interchangeable. For example, a 3D printing business could also benefit from joining a startup incubator or accelerator which we will discuss later.
Virtual Reality startup
Virtual Reality has been threatening traditional media for some time now, but only recently has it become a serious contender. Almost any form of current media, from video games to promotional marketing material can draw benefits from Virtual Reality. Starting a successful VR business will require a passion, like short films, with a combination of leveraging the potential of VR. Virtual Reality is set to immerse audiences in an entirely new way. VR has a place and will likely affect industries from Real Estate to both in-home and other entertainment facilities.
A Virtual Reality business is likely going to need a decent amount of space for using and testing VR applications. Unfortunately, office space can be one of the more expensive startup costs. However, many people have found success through using community storage sharing sites, like Spacer, to find affordable and local spaces to work within.
There’s also a lot of excitement within VR and related communities. Today, with the popularity of crowdfunding, the right idea could secure adequate funding through sights like Kickstarter.
The Sharing Economy is in full swing, proving consumers that they prefer access over ownership. Tech giants like Uber and Airbnb have understood this and have quickly become some of the largest companies around. One of the best ways to launch a successful startup is to position yourself in a large, growing industry, such as the Sharing Economy. We have mentioned Spacer, who found success in creating a marketplace for storage, but there are potentially thousands of similar ideas waiting to be created. Think about what lots of people need, that a lot of other people have. Sharing services for bikes, cars and property are all common place these days, how can you enter the market in unique fashion?
Once you have an idea, it’s time to secure funding. As we mentioned, joining an accelerator or a startup incubator is popular with startups. Major universities, large companies and community development organisations usually provide these spaces with free resources, facilities and consulting, with some even providing seed funding. A startup that involves the community, such as a sharing economy idea will often be looked upon favourably by these institutes or companies, which means you have a good chance of securing funding.
Ideating your new startup can be one of the most challenging aspects. Generally, the most successful ideas are the ones that piggy back on trending industries or even other popular businesses. When it comes to funding, there’s countless ways once one gets a bit creative.
Whether you get investors on board, launch a successful crowdfunding campaign, or fund your startup yourself, you will likely need to combine a few tactics. There’s some ideas, now it’s up to you to set things in motion.