3 Keys to Startup SuccessMarch 13, 2015
Do you have a moneymaking idea or product that you want to turn into a business? Much of your success will depend on patience and focus.
Having a head full of fresh ideas and a drive to succeed is enough to inspire you to start a business, but successful entrepreneurship hinges on focus, organization, and most importantly patience. Startups often struggle when leaders get too caught up in the “big idea” and do not align goals with customers and partners.
Be mindful of the risks and work to avert them
Below are three of the most common areas that cause startups to run off course. In the chaotic and exciting beginning stages of starting your business here’s a few things to keep in mind:
- Stay focused! Choose a method of gaining capital and stick with it; do not get distracted with opportunities that will make you lose sight of your business goals. When you are strapped for cash, it is easy to chase opportunities that will pay your bills, but in the end, the success of your business depends on your loyalty to your core objectives. This goes hand in hand with choosing the right team. Especially if you are partnering with someone else, make sure that your business goals align.
- *TIP- Being great at a few things is far better than being average at a bunch. Be open to opportunity but don’t chase every one that comes your way.
- DON’T be too hasty about hiring. Hiring is arguably the most important investment you will make as an entrepreneur. Because your business is in its growth stage, whoever you decide to hire must be ready to roll up their sleeves and work!
- *TIP- Tasks that go into growing a business often go beyond basic job descriptions, so make sure that the people you hire are willing to wear many hats in the beginning. It’s also important to fully disclose the expectations of a person’s role in the principal stages of your business during the hiring process.
- Be careful with the equity you hand out. It’s not uncommon to face challenges finding funding but watch out for the occasional greedy investor! Don’t give up too much stake in your company and try to get a solid understanding of what value (beyond money) potential investors will add to your business.
- *TIP- Only take money from people that you trust and respect. As your business grows, you do not want a part of your business in the hands of someone who is untrustworthy. Though you will likely need to give up more equity if you are an inexperienced entrepreneur, don’t feel forced to take the first offer you receive or think that you are bound to a deal you are not comfortable with.
Starting a business is an incredibly admirable and exciting endeavor, but it can become extremely difficult if you are not clearly outlining the goals of your company and how you will go about achieving them. Remember, mistakes are learning experiences too and can sometimes uncover new ideas and avenues for your business.
Are you thinking of starting a business and have more questions? Contact any member of the KLR Startup and Emerging Business Team.