What does it mean to "think like a startup"?

10 Days ago I took part in The Future Business Models Panel at the AITO conference.?

One of the concepts we discussed, prompted by a comment from the floor, was the need for many businesses in travel to “think like a start-up”. But what does that really mean??

At its simplest, I believe firms need to act like they’ve got a blank piece of paper; ignore how they or their sector have worked before and start afresh. They need to be lean, fast moving and, to a certain extent, aggressive.

It can be hard for a business that has been operating for ten, twenty or even forty years to turn their back on tried and tested ways of doing things. However, the context has changed dramatically; resources and time are more limited than ever before.?

I believe there are six key areas to consider:?

1. Every pound you spend has to benefit the end user or measurably build value
2. Every person involved (whether internal or external) needs to know exactly what their role is and what the expected outputs are
3. Be curious. Experiment continually … but quickly and cheaply. Swiftly drop the things that don’t work and keep tweaking the ones that do.
4. Constantly solicit customer feedback and use it every day to get better at what you do
5. Ignore the norms for the sector
6. … and fight your fear of failure

These points feed into the day to day practicalities, such as how you look at cash flow forecasting. The way you’ve done it before might not cut it in the current climate; you could need new tools that help you identify exactly where dangers lie, your day to day working capital requirements and the desired impacts of any spending.?

Some people imagine that in a startup you do away with traditional business structures and aim for a flat and flexible organisation. I don’t fully agree. It's my belief that you need to have a clear structure for the business, or at least an idea of what your desired structure will be further down the line. This doesn’t necessarily mean a rigid hierarchy but, at the very least, it will give you clear frameworks for communication.?

This ties into the concept of long established businesses morphing into startups. The owner/leader of the business may be at an age and stage where the stamina for 24/7 immersion in operations is waning. Acknowledge this and build a team that uses this seasoned sectoral experience to support and motivate (and reward as soon as is possible) a dynamic team that can drive the business forward.

There is another compelling reason to think like a startup in travel. There are lots of new entrants to the sector that are genuine startups. Some are highly visible, but others are building swiftly and may currently be off radar. More are waiting in the wings.

These new entrants have none of the baggage of long established businesses. They are tech savvy and are run by bright and innovative teams. However ... they lack many of the insights gained from decades in the game; the way to beat them is to take them on at their own game.