Nowadays, when you are starting own business is accepted to name as startup. For people who are long time in business it’s nothing more than an experiment. Will it work? Will it not work? That’s all! To be succeeded use best practices and keep away from prior mistakes.
If you are starting your business just for sale it will not work. Investors won’t have a look to you if you just want to get money. They must be sure you are involved completely in project you are starting. If you want to be success then follow next rules:
Focus on your customers. You should know who are your clients, your focus group. Not all customers can worth your time and efforts, especially in long term relations. You can’t deliver everything to everybody. Focus on your customer! Select few key services which you want to deliver and then make sure that it’s clear to all of your staff.
Build a culture from the scratch. Founders mostly understand a company culture like a set of some actions you do together, like Friday breakfasts, monthly karting-races ans so on, with you staff that is not related directly to your direct duties. That’s not bad, but not correct. You must understand at the very beginning what vision, value system and way of making decisions you have and how type of company you build can become a part of it.
Raise proficient money budget. Zero of money is going to throw you out of the market, but raising too much of money before you can find you focus group of customers will kill you business. Be sure that first few months your startup idea will be changed to fit market and your expectations. This affects your budget plans. That’s why it should be enough to make fast grow, but not too much to make you fat and lazy cat.
Be focused on demand. When you going to get your next fundraising you always has temptation to make a big announce about this. Sure, at this moment you are very proud about your business. Sure, this can make a lot of noise around your company… for a moment… but more important is to focus on keeping generating continuous demand for your service or product you generate. Among other things your big PR push will be just a simple notice to investors about you. End.
Get the right set of investors and advisors. Don’t look at investor as just pay-stuff-guy. It’s selfish. Don’t look at advisor as money pull out tool. Your investor and advisor should be friends to your business. This is very important in shaping company at the beginning.
Value good hiring process. When you have an excellent idea, but hiring middling employees, your startup soon will die. You must be involved in hiring process as long as it’s possible. That means you must take a part in every hiring decision until your company reached size when there is no more possibility to make a direct control on it. For this moment make sure that you have strong hiring methodologies and deep understanding of your staff what your preferences are. Also pay attention to references check and place a call to previous employer when it possible. It ‘s always nice to have a good feeling about somebody, but it is also good to hear from person who knows him/her better than you.
Don’t overestimate senior employees with experience. Young businesses often want to get senior employees with brilliant resumes and strong knowledge about used technology by business. It would be better to hire passionate, smart and ready to work hard guy rather than experienced with some specific expertise which can help in some cases.
Don’t seek for The Holy Grail. It doesn’t exists. Your business is alive like you. If you don’t care about it, then you don’t need it and then it die. Sure, it would be nice to find it to bring your business to the next level always generating continuous income… but, as I said, it doesn’t exists.
Believe it won’t be easier over a time. It never gets easier and it takes more time than you expect. Always! Wanna get hard result? Work hard!