Over the past decade, I have started five businesses. As serial entrepreneurs, we are constantly thinking of new businesses and ways to innovate. While it is always exciting to explore new ideas, we know that the challenge lies in execution. Running a startup results in two extreme scenarios. You either love it or you hate it. There is no such thing as sitting on the fence.
The working pace in a startup could be dynamic to some, and agonising to others. Here are some areas that are crucial to a start-up’s success.
1. Get a co-founder
I believe that you should not start a business alone.
Statistically, businesses with two or more founders are more likely to succeed. Striving alone in a startup is tough. A co-founder is able to support you during these tough times.
Do not settle on a co-founder just because you have to fill the position. You need a co-founder whose strengths complements your weaknesses. It is not easy to find someone who agrees with you on directions and vision for the business.
Be specific about the roles and responsibilities of each co-founder before you embark on a working relationship together.
Before I started Doxa Holdings, I wasn’t sure if I should start another business. I knew that I had my limitations. This was when I met my Co-founder, Leon Yeo, in church a couple of years ago.
We come from vastly different backgrounds and possess different skill sets. I have been in the startup world, while Leon came from multinational corporations. After working together, we realised that our varied strengths and experiences are complementary to the business journey – from executing ideas to scaling growth.
2. Develop a business plan together
Once you have found the right partner who shares your vision, it’s time to get cracking on a great business plan. It’s important to develop a business plan with your co-founder.
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There will be greater ownership over the business when you work on it together. Do remember that the business belongs to both of you. You should not work alone.
I strongly believe that the best plans are simple. They are not complicated or over-ambitious. Our plans need to be realistic.
3. Investor reporting
All start-ups need financial support. Securing the first round of funding is not going to be easy as you are starting from ground zero. You need good ideas with a reasonable go-to-market strategy.
How do you justify your business’ valuation? Do be mindful that if the valuation in your first round is high, it is going to be even higher in subsequent funding rounds.
When I was running my first business, I avoided reporting to investors. I had initially thought that my investors would slow me down. This was a mistake.
My investors wanted me to succeed. They can bring fresh ideas to the table or support you in clearing any potential roadblocks.
Upon starting Doxa Holdings, we have invested time in reporting to our investors. We implemented three ways of reporting to our investors:
1. a global group chat where we share quick wins
2. a monthly report
3. quarterly meetings where we share updates
Communicating regularly with our investors builds trust. As a result, some investors have increased their investments in the company. We are truly grateful for their support.
4. Network and connection
It is important to plan how you’re going to build up the network that your business requires. It doesn’t matter if you have a great business model.
What matters is that people know about your business model. Your network is crucial in supporting you to develop, launch the product and get your first few customers onboard.
5. Avoid working with big brands
While bigger brands look great on your portfolio, you need to spend loads of time discussing and negotiating with multiple stakeholders.
Timing is crucial when you are starting out. Survival of the business should be the focus. Bigger firms do not usually give you immediate returns. They take much longer to nurture. Time equates to costs.
In another start-up that I used to manage, we pitched for a project that was worth approximately $2 million. We invested valuable time in discussing and engaging stakeholders.
While we did eventually clinch the deal, It was challenging to sustain the business while nurturing the client as we had to deal with the client’s long payment terms and approval processes.
6. Be flexible
Startups have to scale fast. They require the ability to adapt. Whenever there are changes to the approach, the team needs to be flexible in taking on a new direction.
It is important to not be emotionally attached to your business idea but rather, to move with the demand of your customers.
7. A receptive mind
You may have mapped out the process and strategy. But, things often do not go according to the plan. It is crucial to be open to feedback and adjust your business model accordingly.
8. Limited funds
Handling of funds is one of the most crucial undertakings. No matter how much funding you secured for the business, you need to realise that it is never enough. Bootstrapping is key.
Also Read: A simple recipe for building trust in zero-to-one startup ideas
Startups often get carried away when they get a new round of funds. You may invest a hefty sum into developing a new product that is going to be a game-changer. But, consumer behaviour is unpredictable.
It is a problem if you are hunting for funds to pay your start-up’s monthly expenses. This may prolong the runway of the business but it is not sustainable.
The business is losing money every day. You should be looking at adjusting the business model and identifying ways to reduce your expenses.
9. Stretch your dollar
Building on the previous point, it is important to stretch your dollar. You should justify every amount spent. With every expense incurred, your startup should expect to reap multi-fold in terms of results or benefits.
Do not be ashamed of being a start-up with limited funds. We often tell people we meet that we have a very tight budget.
When we first started, we never thought about renting an office space. We met and did our work in cafes and libraries. It’s okay to start small and prioritise your spending. Our office space is currently sponsored by TechCircle.
10. A multi-tasking team
Without a strong and lean team, you may be overwhelmed. You need a few main functions in your team — business development, finance, technology and marketing. It is important to fill these roles at the start.
Conflict resolution is also key. Working in a start-up can be extremely stressful. There is bound to be conflicts and disagreements. Hence, rules need to be established.
This is to ensure that everyone is aligned with the direction and vision of the start-up. We need to work as a team and complement each other to achieve a shared vision.
11. Perseverance and commitment
Many of us would have thought about starting a business in various points of our lives. How do you determine if a start-up is going to succeed? I personally feel that every business will succeed as long as you do not give up on it.
If you focus on improving and adapting, there is no way that your startup will fail.
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Image Credit: Sergey Zolkin
This article was first published on October 8, 2019
The post 11 easy strategies that are important for every startup to succeed appeared first on e27.