So you have the urge to start a company, or you just did.  This can be the most exciting time in your life, but you need to be alert that this courageous step  is carefully planned and that your business idea has a solid foundation – from financing planning to product development and team building, market studies and building customer relationships.

If you are not new in the startup world, you probably already know this cold truth: 9 out of 10 (!) startups fail and this is mostly due to money-related issues and insufficient competence / lack of experience. 

No reason to bury your head in the sand! We all share the same experiences because we were or are entrepreneurs ourselves – and more: we are consultants. We are mentors. We are coaches and guiding angels. And we are trainers for startup founders who have ideas but little or no experience. In short: We give startups impetus and make your ideas fly. With the right tools and apps to get the results you want.

Clatu StartUp is the answer to the question “How can I solve problems that look unsolvable with limited resources” or “how can I test whether my product really works out there without too much risk?” or “where can I find funding, investors or venture capital funding?” More on that below.

Clatu is entrepreneurial at its heart, having spent the last 30 years starting and scaling businesses in the food, beverage and HoReCa industry. We passionately believe in entrepreneurship and want to support any founder who has an ambition to start an early stage business. A company that offers a profit for the founders themselves, a benefit for the customers and, last but not least, creates real added value for society and for the economy in a broader sense.

From how and where you are going to sell your products, to what the ultimate goal of the business should be, there are a lot of things to consider before you really get started. We have put together a few basic points that we think are important.

1. Support from your loved ones

Most founders start their company out of passion. They are motivated to be their own boss, to create something or to solve a problem they see in the world. Being a startup entrepreneur is part of who you are and your destiny. You should keep looking at yourself, rethinking your values ​​and goals, and making sure the entrepreneurial journey is right for you. It often is, but it is necessary to question every now and then whether you are still on the right path. So you can put these questions to rest and concentrate on the path ahead of you.
Before you go ahead with your idea, you should talk to your husband, wife, partner, children, parents and other close family members and best friends. They all walk with you on this journey and you need to know that they will support you when things get difficult. Family and business don’t have to be two separate things. Being in the direct environment of founders or growing up directly in an entrepreneurial family can be fantastic. There’s no better foundation for the world of work (whatever it is) than experiencing the daily ups and downs of being self-employed. So get your loved ones involved – they might even have some great ideas to contribute.

2. No money – no show

Let’s face it: founding a company is no picnic. You can only manage to overcome setbacks if you are passionate about your idea. Those who take the path of self-employment have to be prepared for the fact that the upward trend is more wavy than linear. In addition to financing, bureaucracy, certifications, taxes, insurance and customer acquisition should not be neglected. Points that are inevitably associated with being an entrepreneur. As far as financing options are concerned, there are now many options, such as loans, crowdfunding, government funding, startup accelerators and green ventures. And of course self-financing with a corresponding financial cushion. If private savings are not available, there is also the option of starting a business as a sideline and second income, which reduces the financial risk. It also offers you the opportunity to find out whether self-employment is a (permanent!) option for you at all.

To keep in mind: A good idea without any financial basis will not work in the environment of food production, beverage sales or import/export. Product development costs money. Storage and employees cost money. Analysis, approvals and certifications cost money. Marketing costs money. And yes, consultants and mentors also cost money.

So you have to make some decisions about your finances and reduce financial risk before starting a business. First, reduce all unnecessary financial obligations and find out what is the minimum amount you can live on. Plan a solid budget for all investments and external costs. Think about your income – will you work full time and launch a side hustle? Or do you plan on working part time? Or are you going to go ‘all in’?

3. A vision alone is not enough – you need a plan and a roadmap

Let’s assume that you have a good business idea and you also know your „why“. This will be your north star guiding you. But you can only be really successful if you plan in writing and proceed in a structured manner. There are several studies that show that entrepreneurs with a business plan and roadmap are less likely to fail. Planning also gives you more confidence and forces you to consider all aspects of your business – including the “what-if or worst-case scenarios”.

4. Get to know your customer

„The bait must appeal to the fish, not the fisherman.“  That’s why it’s important for you to delve deep into the lives of your target group and future customers. Find out what problems they have and how they see the world. Do not rely solely on Internet research, but talk to customers and future buyers. Make a long list of all their problems and analyze the results. There are probably three salient trends that you should align your business with. The more you know about your customers and the more specific your USP is, the more your message will resonate and the less you will have to spend on marketing.

5. Sell it before you produce it

“If you build it, they will come“  – this idea may apply to luxury cars, iPhones or hot dogs – it doesn’t work for start-ups. You have to make sure that people really want what you do and are willing to pay your price. Get sign-ups, pre-sales, test listings, or any form of financial commitment. This is your proof of demand. „Potential sales“ according to surveys are often worthless – people’s future prospects are less tangible and unfortunately distorted. Instead, consider options like crowdfunding to boost your business and increase sales.

6. Find a mentor

A mentor who has more experience than you can be invaluable when starting a business. „Been there, done that“ means something like „Don’t repeat the same mistakes that I’ve already made (and paid dearly for).“ Because a mentor has already gained a lot of experience, they take a bird’s eye view of your situation and educate you, both from a creative and technical point of view, towards possibilities that you had not yet considered. He shows you new possibilities and supports you in finding ways that you have not thought of before. Many people, especially your closest confidants, won’t always give you the honest, hard feedback you need either. A mentor can not only present you with many possible solutions, but also give you the necessary drive.

In addition, mentors from your industry have a large network of contacts to companies or people. A mentor can advance your career by connecting you with the right people. As a door opener, a mentor makes it easier for you to access valuable contacts and thus gets you to your goal faster.

7. Build networks with other founders

There are many other people out there starting a business who are facing the same challenges as you. Getting to know them can be very useful for your startup. So-called “peer learning” can double your profitability. It is up to you whether you want to get involved in an association or start-up network, or whether you prefer to network in a startup incubator.

8. Patience, perseverance and the right entrepreneurial mindset

Building a successful business takes time, a lot of brains and determination. And the truth is that there are only a few exceptional cases where you become successful overnight. The first orders after a few weeks are by no means a guarantee that things will still be going well in a year. Most real successes only come after a few years. Therefore, the right attitude and mindset is crucial.

What does „success“ means to you? The answer to this question depends on many factors and usually looks completely different at the age of 25 than at 45. So is it about making quick money (pitch, find investors, sell after a few years and then move to the Mediterranean)? Or about creating real added value for society and for the economy (whereby meaningfulness is more important, than the goal of getting rich)? Is it about being free and not having a boss telling you what to do? Finding a way out of unemployment? Or just to put your career aspirations into practice, live happily with it and finally have more time for the really important things in life?

9. Door-to-door selling and setbacks are part of it

No matter what industry – business never only develops upwards and successfully. In addition: Especially in the area of ​​food, beverages and wine as well as in the restaurant business  you are moving in an extremely saturated market.

Take a  look at the supermarket shelves in Europe: 50 different wines and grape varieties, 40 packet soups or ready-made meals, 30 different types of yoghurt, 20 cooking oils, 10 vegan fitness bars and just as many deep frozen pizzas compete to attract buyers. There is cut-throat competition that only has room for new, better or cheaper products. Everything else is not relevant.

However, minor or major setbacks are no reason to doubt your own startup. Such setbacks often prove to be instructive and founders emerge stronger from it. Months of preparatory work with door-to-door doorsteps, perseverance, paired with real added value are therefore the success factors for young entrepreneurs.

10. „To boldly go…“ – don’t forget to have fun!

At the end of the day it’s about people, adventures and friendships. It’s about building relationships, learning, growing, exploring and having fun, not making sales.