Companies like Amazon, which started life in a garage, or Spotify and Uber, which came to be in co-working spaces, were not designed be global in scale like they are today, but from the off they created a unique concept and therefore act as a mirror to current startups.
The very etymology of the word ‘startup’ gives many clues to the original concept of this type of project. For startups, the first guideline to follow in order to not die trying is to focus energy on developing an exclusive or at least a very specific idea.
The editor of Wired magazine, Chris Anderson, coined the term long tail to refer to the creation of niche business models. To explain his theory, the expert pointed out that nowadays, offering specific services is attractive if you do it for the masses, and this is where you will find the basis of success – in the long tail or queue that forms around an in-demand product.
Talking about this, practically there are as many projects as ideas that may occur to their creators. Those that analyse data and those that offer online banking services are on-trend at the moment. In both cases, the people who brought forward these initiatives defined the niches that they wanted to target and found a market.
In this first phase, during which the idea is conceived whilst assessing market trends and potential competitors, it is also very important to persist and to not be discouraged. It is a demanding task, since almost all of the responsibilities usually fall on one person or on a very small group of people.
The economy is another factor to take into account before such entrepreneurial endeavour. As explained by the Starting Up in Spain guide by the Ministry of the Economy and ICEX, the process of forming a project ranges between €300 and €4,000 in bureaucratic expenses, not including wages. However, there are many ways to find funding – from public subsidies through to private capital, depending on how advanced the idea is.
That is why, after putting this process in motion, many companies look to enter innovation programmes such as insur_space by MAPFRE. Through these initiatives, those who are in this early stage of development, and those in the more mature phases, can meet prospective investors, increase their networking capacity and get to know the industry.
Startups have already revolutionised varied sectors, but there is still room to include new innovative and disruptive projects. There is no magic formula or definitive answer as to how to establish a startup, but a good start is to stop going round in circles with that idea you’ve been keeping in a drawer and bring it to earth to create impact.