12 Basics for Startups

“It’s not the idea that is special, but rather the execution” is almost a cliché now.

The startup spree born from the digital world created a wave of new entrepreneurs and business savvies who virtually know how to make gold out of dirt. That recipe is not here, I’m afraid. These are only my two cents for those who are still looking for advice.

AMBITION

1. If you are not willing to stand out as the best, then why even care to start?

HUMBLENESS

2. We certainly are all unique in some way, but not necessarily in the relevant way for the business. No matter how special you are, it’s likely that there are a few other thousand just like you, or even better than you. Keeping a foot on the ground may not let you fly as high, but will help you fly where you want;

TEAM

3. Do the basic “team”’s arithmetic: make sure 1+1 is greater than 2;
4. Appreciate those who have a different opinion. If you need anyone to agree with you by principle, then go find a boss;

PRODUCT

5. Make sure there’s something special and hard to copy in the product you are offering. If you’re in a market where it’s really hard to have a better product, then make sure you the way you offer it is better than others;
6. Don’t try to have a product that will serve everyone, but won’t be the best for nobody. It’s better to focus on the market segment where your product can beat others;

COMMUNICATION

7. Don’t expect anyone to discover you. If you don’t communicate widely what you are doing nobody will know you exist;
8. Be genuine with your PR and internal communication. Negative facts or bad information are time-bombs you won’t be able to control. If you can’t stand dealing with reality and what it may mean to others, then go find a boss;
9. Tell the market what you did, tell what you are doing and tell what you are going to do. This is the best way to get feedback for your work and avoid others getting credit for it. Secrecy may kill your business;

MANAGEMENT

10. Look for educated decisions, not perfect ones. In startups you hardly have enough information to make it perfect, but you shall keep moving forward;
11. Reporting, reporting, reporting: make sure you choose the right metrics to assess the business evolution. As the saying goes: “if you don’t know where you’re going, you may end up anywhere”;

FINANCE

12. Cash-flow is king, but valuation is ultimately what finances your business. Early stages’ cash-flows may not represent adequately your business potential. Make sure you know your story right to ensure a proper valuation and plan wisely when to raise more capital.