Establishing a startup is a total nightmare. Every other day a new challenge springs up, and you have absolutely no idea how to tackle it. This is the main reason why most of the startups meet an untimely death within the first six years of establishment.
Companies in IT sector are running neck to neck in competition trying to make their mark on a global level. In such a scenario it is necessary to avoid pitfalls and one way to do it is to learn from the mistakes others make. Michael Katz illuminated the world with ten lessons that can be gained from the failure of his second startup.
Right Team Gets You Success
It is not necessary that if one team got you success in one project or one phase, they are likely to get you success in others as well. Though by working together, you develop a mutual trust and understanding of the goals, it is not sufficient to strive in this competitive market. You need to have the specialized team for each and every task and each and every project.
Rigid Things don’t Bend, They Break
Flexibility will take you far in this aspect. Startups may not necessarily have all the cues sorted out at first. Expectations, feedbacks, reviews all are developed over time. If you are too rigid with your product or services, they are huge chances that you are going to meet your downfall sooner than you expected.
Give Space To New Ideas
If you are a startup, it is a better option to keep your ear open for new innovative ideas. It is a good trait to explore your options and the market demands, but be wary, not all ideas are good ideas. You need to have the ability to observe the distinction between a good idea and a bad one. Startups investing their resources in a bad idea is like resting your head on a pillory; you can never know when it gets chopped off.
Frame Company Values and Hire Accordingly
Work atmosphere is critical for a startup. Employees will not be able to work with their full potential if they are uncomfortable with the work environment. To maintain a healthy atmosphere, it is required that people with similar values are put together. The best option here is to frame the values of the company and hire employees accordingly. A difference of opinion can always be reconciled, but different of values can prove as the last thread to a startup.
Sweetness Attract Flies
Remember when you are successful, you are bound to attract many people and will probably become friends in supporting your business. But most of them have ulterior motives. You need to realize which ones are worth trusting and which are not. If you ever hit a snag, you will need those trusted individuals to get back up on your feet. Mark your friends openly and acquaintances very clearly.
Shine Bright With Investors
Investors can make a huge difference to the company. 65% of a business that has survived for more than ten years have accepted the fact that investors played a huge role in elevating the company. However, it is important to remember that if the product goes down, they will not drown. So gear up your team accordingly and plan your actions that promote the overall good.
Let an Advisory Board Guide Your Decisions
What decisions you make will either harm you or fame you. So make the decision process a bit more extensive by incorporating angel investors and advisory board. Not only will this give an observation based on multiple perspectives but it will help a lot in making tricky decisions that can assist the business to avoid many tight spots.
Play to Your Strengths
You can be good at only one thing. It is because to become the expert in an aspect you need to pay attention to it, hone your skills accordingly and become the master of it. Trying to balance too much on your plate will end up in a spill. Work on those projects that you can outshine in and outsource the rest. Yes, you will need a team to keep tabs on outsourced projects, but it will be worth it. You seriously don’t want to provide poor services to the client.
Access To Capital Is Easy Execution Is Not
In the current scenario, it is easy to get hands on capital may be through your personal funding or investors, but execution is not. No matter how prepared you are, performance glitches will occur. You need to be ready to face them and keep maintaining your balance.
Don’t Critique Yourself Too Much
You are already doing what you can to the utmost limit. Pushing yourself further will bring no improvement, rather it will only hamper your mental stability. You need to be clear with your thoughts and goals to keep running the business with maximum effect.
The Bottom Line
Follow these ten lessons as commandments and take your startup to new levels of success.