You have great idea and you think it gonna make the world a better place and you a rich man. Welcome to the entrepreneurial world, you have been bitten :) Before you take the plunge here are few checks you should consider. Note : I only know about Technology startup so please excuse me if this doesn't resonate for others.
1. Idea - This is has to be your first consideration. Is your idea scalable ? Don't bother thinking about a unique idea. An iPhone was not a unique product. Facebook was not first social media site. It has be better than everyone around you and it has to have the potential to scale to a size which will make it invincible to others.
2. Know your market - You should know your customers and their needs. It is a no brainer but most people have great idea which has no customer. Until the app revolution started, in 2007, no one would have appreciated the value of google maps linking to Uber or OLA. If you start a company now which has no relevant function then, you better have deeeeeep pockets :)
3. Money - Simply put a new company (technology) can be started with as a few thousand dollars and can later acquire large investor. But be ready to put in the money. When you put your money to start a company it is called "Bootstrapping" - You could loan the money from family, or even crowd source. But you have to put you money before anyone else can invest in your company. This is called "skin in the game"
4. Great Technologist - You should have a great team of coders to build your idea. Either you code yourself or have someone do it for you. But don't hire a team which is mediocre, because they will always produce mediocre product and more importantly you will lose "time to market". This is perhaps the single most important thing, which you should be aware of, in starting a company. If you have a great product the market will recognise it.
5. Investors- You bootstrapped the company for six month to an year. Now is a good time to hit the market and seek the investors. Remember if you delay too much then you are loosing your hard earned money. If you are not getting your platform right then seek immediate recourse, including changing the team or even shelving the idea altogether. A startup is like a stock in the shares market. You have to cut loss and forget about it instead of holding on to "dead" stock.
6. Share your Equity - Typically startup co-founders, fear losing control of their destiny and resist dilution of equity. Remember it is your company. Everyone knows what happened to Apple when Steve Job was thrown out of the the company. Have conviction in your capabilities. No investor will want to rock the boat, unless they are forced to. At the end of the day, they are also in it to make money. This is true of everyone in the company. Share that wealth with everyone who joined you during the formation days. They believed in your story !
7. Finally - Scale or fail : Yes you should aspire to be the number uno in the market. If not then it is better to move on to a new idea. Most people fall in love with their company, so much so, that even though the odds are stacked against them they keep on at it. Remember, there are a number of browser, but there is only one Google !
If you liked this article, please share your comments with everyone and do recommend this site to your friends / colleagues
1. Idea - This is has to be your first consideration. Is your idea scalable ? Don't bother thinking about a unique idea. An iPhone was not a unique product. Facebook was not first social media site. It has be better than everyone around you and it has to have the potential to scale to a size which will make it invincible to others.
2. Know your market - You should know your customers and their needs. It is a no brainer but most people have great idea which has no customer. Until the app revolution started, in 2007, no one would have appreciated the value of google maps linking to Uber or OLA. If you start a company now which has no relevant function then, you better have deeeeeep pockets :)
3. Money - Simply put a new company (technology) can be started with as a few thousand dollars and can later acquire large investor. But be ready to put in the money. When you put your money to start a company it is called "Bootstrapping" - You could loan the money from family, or even crowd source. But you have to put you money before anyone else can invest in your company. This is called "skin in the game"
4. Great Technologist - You should have a great team of coders to build your idea. Either you code yourself or have someone do it for you. But don't hire a team which is mediocre, because they will always produce mediocre product and more importantly you will lose "time to market". This is perhaps the single most important thing, which you should be aware of, in starting a company. If you have a great product the market will recognise it.
5. Investors- You bootstrapped the company for six month to an year. Now is a good time to hit the market and seek the investors. Remember if you delay too much then you are loosing your hard earned money. If you are not getting your platform right then seek immediate recourse, including changing the team or even shelving the idea altogether. A startup is like a stock in the shares market. You have to cut loss and forget about it instead of holding on to "dead" stock.
6. Share your Equity - Typically startup co-founders, fear losing control of their destiny and resist dilution of equity. Remember it is your company. Everyone knows what happened to Apple when Steve Job was thrown out of the the company. Have conviction in your capabilities. No investor will want to rock the boat, unless they are forced to. At the end of the day, they are also in it to make money. This is true of everyone in the company. Share that wealth with everyone who joined you during the formation days. They believed in your story !
7. Finally - Scale or fail : Yes you should aspire to be the number uno in the market. If not then it is better to move on to a new idea. Most people fall in love with their company, so much so, that even though the odds are stacked against them they keep on at it. Remember, there are a number of browser, but there is only one Google !
If you liked this article, please share your comments with everyone and do recommend this site to your friends / colleagues
Nice article; lucid style that carries conviction. Keep it up Sandy.
ReplyDeleteThank you Venu etta
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