Building a startup? Here are my 10 tips on how not to fail
During my 10yrs of a career as a remote-first CMO for startups, I’ve seen many flaws. Things that could have been avoided with better leadership.
Since January, I have been sharing my knowledge not just with my immediate circle of the community but also with early-stage ventures backed by Techstars as a mentor.
I wanted to give ten tips for anyone working with growing companies or building one themselves.
These tips apply to most companies.
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💬 Focus on your story
Ideas are amazing - but a story about your idea is unique.
Even the most simple idea or MVP can stand out with a great story.
Why the world needs your product? How will it impact the world?
What is your story? Why are you doing this?
🙋 Get feedback first
Most of you are mega-focused on user acquisition - getting the first 100-1000 users on board.
But early on in the game, gathering feedback is much-much more critical.
Speak to your target audience. Ask questions. Provide them access to your product for free or at a high discount. Let them try it out.
Everything they say will be a golden standard for your product market fit.
🎯 Focus on one target audience first
Speaking of target audience and ideal customer profiles, focus on one first.
You won't be able to conquer multiple ones with a small founders-led team and a limited budget.
So narrow your focus and address only one group with your messages.
🍍Low-hanging fruits first, but keep an eye on the top as well
You need validation, information, and results - fast. Look for those targets who can benefit from your idea the most.
They will be your first low-hanging fruits.
But also, remember to keep an eye on the top of the tree.
Only the brave ones go for the high-hanging fruits, and they are the juiciest ones.
1️⃣ Focus on one problem you solve
Especially during the early-stage, startups tend to address problems with multiple solutions.
Focus on one problem only. Have one solution only for that problem.
Scaling a company takes power, and the power is in the momentum. But you can only get momentum if your focus is cohesive.
Not to mention that your company is new - always easier for target customers to understand what you do if you do only one thing.
But do that one thing flawlessly.
💰 The money is in the network
Do you know what's better than a customer that pays you money? A network of customers that can pay you money.
For example, your target audience is the influencer market? Winning 10 influencers is hard. Winning an agency that managers 1,000 influencers?
Or are you in the sports business? Winning 10 clubs is hard. Winning an association of clubs, on the other hand?
📊 Understand your numbers
The three absolute numbers you need to know every time:
The size of the market that you are addressing
The opportunity you have by converting X% of that market
And the actual growth number on your end
How big are we talking?
What is your opportunity?
And how can it be translated into growth?
⚙️ Invest in operations early-on
Level up your business skills.
Level up your managerial skills.
Create operational policies you can amend and tailor once you are in the growth zone.
You are not just an idea anymore but a business. So the earlier you invest in operations, the earlier you get traction.
Incubators & accelerators & mentors are the ones who can help you with this a lot. Don't shy away from asking for help.
🔍 Hire very, very, very, very cautiously
The first hires you will make can be a make-or-break situation for you.
So hire wisely.
Have a plan and goal on whom you need and how you need it.
Look for a growth mindset—someone who wants to grow with your company.
Get involved - founders should be part of the hiring process during the early stages of the company. These will be your first leaders, first managers, and first helpers.
Also: decide if you need to hire or seek for external help only. In most cases, the latter is a better option.
🔗 Keep things interlinked but modular first
Keep things modular even if you've got your first seed funding or reached a specific revenue.
You don't need to build out a full-fledged _insert name here_ department for a startup.
If you invested time to tailor operations to your need and hired the first round of people, you are probably on a good track.
Please don't ruin it by overblowing your company in the first years.
That all-glass HQ and 500 people team (or whatever your dream is) can wait for you. So don't sacrifice your momentum.
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There you have it, 10 tips that can help you avoid most fail when building something amazing.
Peter
PS: I had a wonderful conversation on Leadership Anywhere with Scott Markovits on this topic - we packed the episode with insanely useful tips for founders on remote operations & scaling & startup growth.
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