Leading business associations do not rely on innovative business strategies to flourish. They continue to follow their age-old legacy. Startup ideas are the ones who come up with innovative business ideas. This is because they are new to the field and want to secure a position for themselves among the competitors. Thus, they are in search of new ways, implementing breakthrough technologies and other marketing strategies to get hold of the market. In short, they need a strong business plan to hold the market which leading companies already have a grip over.
What is a business plan?
Every business is built with the intent of making a profit. Consequently, businesses should have a working plan designed to fulfil their specific requirements. A good business plan makes sure that it is able to attract investments for the company, convince workers to join the startup, roadmap for the business, secure loans and attract strategic business partners.
Eventually, when things start to work it directly competes with the leviathan (read leading company) winning over the market with its products and services in demand. Clayton Christensen in his "The Innovator's Dilemma" says that this change leads to disruption. But this is rather easier said than done. Starting up a business in this immensely competitive market is rather a strenuous job to do. One of the first things that one needs to do is to determine the field in which they want to establish a startup. Thereafter, following are some simplified steps that help give shape to a startup idea.

1. Researching and assessing the current market
2. Crafting a practical plan
3. Planning the finances
4. Choosing a suitable business structure
5. Naming and registering the startup
6. Obtaining necessary permits and licenses
7. Picking an accounting system
8. Setting up the business location
9. Getting the team ready
10. Starting business promotion

Investing in a startup
If you plan to invest in a startup you would rather have to risk your finances into an uncertain income opportunity. But certainly, all your investments won't go in vain if you have the right plan. Investing in a business means you will have to negotiate with the founder of the company when he/she is in search of finances for his/her new business. In exchange for your investment capital, you can claim a significant share of the company's income. In reality, startup companies can raise their finances from Venture Capitalist firms and Angel Investors. Some common forms of investments are equity and convertible investments which rest in the non-tangible assets or securities of the company. Here, tangible assets refer to the physical investments.
If you want to invest in equity you will have to purchase shares of the company at a fixed rate. Taking the convertible securities for investment would mean that the amount of investment would convert into equity. An early stage investor would choose convertible securities (in the form of Y Combinator's SAFE documents and convertible notes). On the other hand, investors of later stage startups, like series A or later, should opt for costlier equities. When you are determined to invest make sure you move ahead with the right strategy.

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