What to do after deciding to create a startup?

Question

Iron

There are two of us with a friend, and we have a wonderful idea. The idea is to create a hardware device and software for the phone, and sell it to end users. So I want to ask about what are the pitfalls of all these startups, how to formalize correctly so that there would be no failure later. Maybe there are reviews and articles about whether it is necessary and what risks there are when entering crowdfunding.
I have heard about the harsh realities of life, when a great idea is ruined by paperwork and competitors, how to protect yourself and your work to the maximum?
The fact is that I am a broken iron worker, everything is new to me in the world of jurisprudence, and I understand that I need to figure this out at the beginning, because I have no idea what shares are, where and how to work with them, investors, shares , funding, I want to think about it now, not when it's too late. And in general, what options are there to protect ourselves from the fact that someone else will take advantage of our idea, or steal it?
I would be glad if you share relevant articles, links, personal experiences and anything that can help!
Thanks in advance to everyone =)

Answer 1

In your case, the problem is elsewhere.
To produce a decent piece of iron at a normal price - you need a huge circulation. Consequently, huge prepayments for factories.
Regarding your question:
Just carefully read everything that you sign.
If in doubt, feel free to take home three days to think before signing.
If you really don’t believe your common sense at all, then get yourself a permanent legal consultant (not for a salary, but for one-time consultations).
About protection against theft of ideas.
The idea itself is worth nothing. It costs (and a lot) its implementation.
Since we are talking about a piece of iron idea, you can patent it.
Learn what a "utility model" is in patent law, etc.

Answer 2

So I want to ask about what are the pitfalls of all these startups

Forget about that stupid word that's been out of fashion for two years now. Look at things realistically. Do you want to start an entrepreneurial activity in the production and sale of devices.

how to format correctly

everything in the world of jurisprudence is new to me

Very simple, hire a lawyer.

I have no idea what shares are, where and how to work with them, investors, shares, financing, I want to think about it now, and not when it's too late

You don't need to know all this to get started.

And in general, what options are there to protect ourselves from the fact that someone else will use our idea

Your idea is worthless and no one will steal it. In any case, there is no right to the concept of ownership of the idea.
What you need?
-enthusiasm
-a lot of time
-money, money, money
-lawyer
-preparedness for nothing to come of it

Answer 3

listen to the old jew

Answer 4

1) You sign a gentleman's agreement between you, such as FULL NAME1 undertakes to do blablablabla in such an amount and not to do blablabla, FULL NAME2 undertakes to do .... etc.
2) Saw a prototype out of shit and sticks, go to investors with it, and simultaneously cut the functionality further.
3) Find an investor, grandmas appear - here you need to seriously arrange everything. Shares, conditions, amounts of financing, frequency of investments, obligations of the parties. You don’t give away a large share, you try to keep as much as possible for yourself, probably it has yet to be shared with other investors.
4) Enter the market, see how sales are going.
5) Further options:
a) you are in chocolate, developing further
b) attract more money with blurring of your shares
c) attract another investor with the dilution of your shares
d) The project is shit, we are closing.
PS Based on personal experience.

Answer 5

business with a friend? such a...

Answer 6

Brief and clear (eng included)

Answer 7

What to do after deciding to create a startup?

The first step is to find out if anyone needs your product at all and how much they are willing to pay for it. Without an answer to this question, there is no point in taking the next steps.

Answer 8

I’ll put in my 5 kopecks, I personally left my mega idea and investor and went to work for my uncle to watch his problems and rake. There is actually a lot of information on the Internet about the financial and legal side of a young business. But hardware projects are a bit more complex than just software (if you're interested https://habrahabr.ru/post/319370/).
Initially, you need to conduct a normal study of the target audience and whether the product will come in, realistically assess the timing, draw up a business model, look for an investor (I was offered to register an LLC and the investor wanted the right to veto himself, that is, 40%). In general, the easiest way is to read about other stataps. The same Ecoisme generally poked around in accelerators, where is training, funding, providing a job and all that.