APPLAUS: THREE TIPS FOR UPCOMING ENTREPRENEURS
Save up some money for a decent burn rate
When we first started working on Applaus, we were either studying while having a student job or working full-time. We put all our extra available hours into the project but started to realise that doing a startup is more than a full-time job on its own! But going full-time on a project is quite daunting since most startups do not get funded before they launch.
In the period transitioning from our normal careers to going full-time (about 6 months), we therefore saved enough funds on our own to have a burn rate of about 12 months. Having a decent burn rate in the period where little to no income is generated will make it possible for you to focus on what really matters, building up your great startup!
Put the right team together
No matter what type of startup you are going to launch, it is important to set the right team. However, getting the right people onboard can be very time-consuming; we have put in countless of hours finding the right people for our founding team. Knowing the people you start the business with can sometimes be a good idea since you are familiar with their strengths and weaknesses. But at some point you might have to look for people outside of your network.
From our experiences, two considerations are important when deciding to give equity to a new team member. Firstly, the person should have a skillset important for realising the type of business that you are starting, preferably complementary to your own, and be great at it too. Secondly, doing a startup is normally quite a bumpy ride and it is therefore important that everyone has a passion for the business field in which the startup operates while getting great along with one another – we know that this might sound cliché but when having to put in 80 hours a week from time to time this is really a necessity.
Be willing to change direction
The initial idea for Applaus was solely to display and sell last-minute tickets. However, over a period of a couple of months, we realised that it would be too time-consuming for the individual venues to create last-minute tickets on our platform from scratch. We only realised this due to the feedback provided by the venues during our development process. Instead of making the venues create the content themselves, we therefore chose to collect the data through public API’s, enabling the venues to just add the number of last-minute tickets they would like to offer as well as the price at which they should sell.
Product development is rarely a straight process, getting feedback from day one and being willing to change direction if necessary can therefore be crucial.
Good luck with your future entrepreneurial endeavours!
Meet Applaus at CBS Entrepreneurial Day 2017!