1 Challenge
- “I am facing a lot of challenges in my startup.”
2 Questions
- “Which challenge should I focus on?”
- “Any best practices to address them?”
3 Ideas
“Your work is going to fill a large part of your life, and the only way to be truly satisfied is to do what you believe is great work. And the only way to do great work is to love what you do.”
–Steve Jobs
If you have a passion and have established a startup to pursue that passion – and make money off of it – congratulations! You’re one among a rare breed of brave individuals willing to move out of their comfort zone in the pursuit for excellence. Nonetheless, like every startup owner, you probably also face numerous challenges related to raising capital, marketing your offerings, finding early customers, etc.
Here are three key lessons that can help you overcome such challenges, and take your startup to new heights.
#1: Build a Great Team from Day 1
For long-term success, having the right team in place is essential. If this sounds like an obvious statement, consider how many new companies hire people in a hurry – and then live to regret it. You need a team as soon as possible, but are you taking shortcuts to build one? Hiring for speed rather than competence? Focusing too much on your HR budget, rather than on getting the right person on-board for the right role? As a startup, yes, you will have a tight hiring budget. But sacrificing competence or skills for “cheap” labour is not a good idea in the long term.
To guide your hiring process and build a great team, ask yourself these questions:
- What skills do I need each employee to have?
- Do my job ads reflect this information?
- Am I interviewing the right people, or am I wasting time interviewing everyone who applies?
- Will a certain candidate be comfortable in our company’s nimble and entrepreneurial setup?
- Will they fit in with our nascent culture and help us build on it?
- Will they be able to multi-task?
- Are they adaptable, quick-thinking and flexible? Comfortable with change and ambiguity?
- Will they work well in a small team?
- What can I do to motivate them, and participate more fully in our startup’s journey?
Focus on these aspects right from Day 1, and you likely won’t see people-related issues down the line. More importantly, you will have the right team in place that can help drive the success of your startup.
#2: Focus on Becoming a Great Salesperson
To grow your startup, you need to sell. It’s as simple as that. And it’s not just about selling your products or services. You must also sell your:
- Ideas
- Vision
- Passion
- USP
- Unique competencies or skills
If you can’t convince others that your business is worth their time, you will never be able to get their attention, much less grow it to a thriving position. Sell to potential customers, partners, resellers, and your personal/business network to generate interest in your company and its offerings. Sell constantly, but be genuine and passionate about your message so you don’t look pushy or worse, ******. Also keep in mind that it’s not just you, the startup owner, who should be selling. Every member of your small team should also be in constant sales mode.
Here are some ways to improve your startup’s sales results:
- Talk frequently to existing customers and look for upsell/cross-sell opportunities
- Set up an email marketing programme to stay in touch with stakeholders
- Understand what customers really want: better quality, lower price, 1×1 support?
- Practice active listening
- Find ways to motivate your sales team
- Explore ways to shorten your sales cycle
- Refine your sales pitch until you can recite it in your sleep
- Strive to present a confident and positive impression
#3: Monitor Key Metrics
Even if you don’t have a financial or accounting background, as a startup founder, you must continually monitor and analyse the company’s key financial metrics. These include:
- Monthly cash flow
- Gross revenues
- Gross expenses
- Gross margin
- EBITDA
- Customer acquisition cost
- Customer Lifetime Value (CLV)
- Customer churn
- Customer funnel metrics
- Any other metrics relevant to your business or industry
If you don’t monitor these numbers, you won’t know what’s happening within your company. More importantly, you won’t be able to address any gaps or implement improvements.
Work with your team and team leaders to identify the metrics that matter to your startup. Understand how to measure these data points, and how this data can drive positive action and results. If you don’t have the in-house skills to do this yourself, find an external consultant or advisor (e.g. a CA, a marketing expert, etc.) to help.
Conclusion
The 3 key lessons set forth in this article can help you achieve your objectives and accelerate your startup’s success. Make sure you follow them diligently and you’ll surely see the results you want.
What did you think about this short article? Share your thoughts!