Startup with no venture capital

I was thinking about how to form successful startups that succeed without venture capital. What is that elusive formula that only some have managed to master to turn a struggling startup into a profitable powerhouse?

After some thought on this, I have picked out the following points:

Innovation
Possibly the single most important thing that will drive a startup to profitability. Lacking significant funds, a startup needs to out-innovate its competitors so that it can cement itself as the leading pioneer in its field.

Before starting a startup it is also important to research whether the target market is already over-saturated with the intended product or service. An overly saturated market obviously makes innovation difficult.

Talent
Try and get the best people your money can buy. If you do not have the money to compensate them appropriately, try and lure them by giving shares in the company.

Smart people working together make beautiful music, so get the smarted you can afford.

Patents
With ground breaking innovation, it is also important to protect your ideas. For a nominal fee, you can patent your idea with the US Patent & Trademark Office.

Relationships
Apart from award winning products, a strong ecosystem is essential. It is important to seek and cultivate strong relationships with some of the leading companies that will be potential users of your product.

Try and cultivate these relationships initially by out manevouring your competitors. Do not worry about profitability too much, at this stage it is important to get an ecosystem in place.

Expansion
Once your product starts selling in the domestic market, it is important to think global and start to build relationships on a global scale. Use the domestic market as a test bed of your ideas and if it works, stick to the formula and expand.

Profitability
It is very important to keep a tight eye on the balance sheet and try to get profitable as soon as possible. Without venture capital, there is only so much your own money will take you.

Always focus your efforts on reducing waste, consolidating efforts, making early decisions to eliminate potentials dead-ends and intruct your employees to do the same.

Recognition
Once your product gains traction, make sure to nominate your ideas/products for recognition in your target field. Awards and reviews from leading commentators are invaluable if you have a small marketing budget.

A positive review from a leading body such as a blog site, magazine or even a formal award will give you much needed PR.

Conclusion
These ideas above represent some points to keep in mind in the highly competetive world of startups.

A large percentage of startups fail every year, but with proper thought and foresight, you can maximize your chance of success.