5 Things Every Startup should Know.
Bill St John
Founder & Chief Executive Officer @ IntelliStem | Cell therapy, Healthcare
Explore all Five at 5 Critical Points for Startups.
1) The ventures’ success all comes down to you (the Founder/CEO). How much you care, as reflected in how often you think about the business in detail. One very successful businessman said, “I’m was never the smartest, I just cared more and thought about the company even when I was peeing.
2) The chance of real success for a startup is in the low teens. It's often hard for founders to realize that their idea has no value; even patents have little value if not actualized. Value only comes through achieving progressively more significant proof-of-concept (POC) milestones. The ultimate POC is consistent sales growth beyond early adopters.
3.) All early-stage companies will go through multiple pivots. As the company evolves, everything changes. So be open and be flexible. I see companies on their third pivot. That’s why I always advise startups not to hire executives too early that may not fit as the company morphs and grows. Use consultants and contractors.
4) The Worst Dilution is a Failure. The Best Technology doesn’t always win; often, the Winner just raised a large amount of money. Delayed sales and the added time, energy, and expense of business development mean you will require more capital. Unfortunately, I often hear founders resisting any dilution of ownership. There is an old saying, “Pigs get fatter, and hogs get slaughtered.” Don’t be a Hog; It is better to have a smaller piece of a precious company than a big piece of a marginal failure.
5) Social Purpose Wins Every Time. The Data shows better performance for socially responsible businesses versus despicable companies.
I love advising startup companies because I get to feel the excitement of the founder vicariously. But such unbridled enthusiasm can often interfere with Founders & CEOs realizing the full extent of the startup challenges, which can inhibit the best planning and process.
Hopefully, this article will help more founders to realize their dream, and I am always to help; shoot me an email at: [email protected]
Bill St John
Read Full article at: 5 Critical Points for Startups.
Bill St John [email protected]