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What our members have to say...
"Just a quick note to let you know that I really enjoyed the Speed Pitching event last night. There were a couple of interesting businesses on show, and the event was very well organised, high energy and fun. Congratulations on a great evening!"
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Paul Breen - Business Coach & Investor |
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Ten rules for startups
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Last week, entrepreneur Mark Cuban wrote a column for Inc. magazine on the 12 “rules” for startups.
It is worth reading because it contains some insightful and, not surprisingly, entertaining ideas from Mr. Cuban, who owns the Dallas Mavericks basketball team, Magnolia Pictures and Landmark Theatres, and is one of the most colourful and outspoken entrepreneurs.
In keeping with the spirit of things, here are my 10 “rules” for startups.
1. You must have passion
Startups are hard work, involve a lot of tough slogging and problem-solving, and often consist of two steps forward and one step back. To create a startup, passion is a must-have characteristic to deal with the constant ups and downs.
2. You must be persistent
Successful startup entrepreneurs have a never-give-up attitude. When times are particularly challenging or no one believes in their idea or the prospects for their business, persistence helps startup entrepreneurs continue to fight the good fight.
3. You must have a compelling product
You can put together the most effective messaging and the slickest marketing campaigns but, if the product sucks, it really doesn’t matter. Eventually, people will see through the marketing rhetoric and the slick presentation to discover your product isn’t that compelling.
4. You must be resourceful
Since it can be a real challenge to get capital to start and grow a business, entrepreneurs need the ability to get things done in as cost-effective way as possible. They need to make deals, forge alliances, leverage networks and bargain hard to give their business as much traction as possible.
5. Hire the right people
For a startup with a limited amount of resources, a bad hire can come at a huge cost. As much as startups want to move quickly and aggressively, they also need to take the time to make good hiring decisions.
6. Know when to cut someone loose
Related to the point above, a startup entrepreneur also needs to know when an employees isn’t working out to stem the bleeding as soon as possible.
7. Don’t get too carried away by the highs or the lows
Startups are volatile animals. One day, you can be on top of the world; the next, you’re bottoming out. Startups need to learn to stay the course, stick to the plan, and keep moving forward. It doesn’t mean they shouldn’t celebrate their successes but the highs should be kept in perspective.
8. Understand that raising money is time-consuming and disruptive
From the outside looking in, raising venture capital looks sexy and exciting. The reality is that it involves a lot of grunt work, energy, numerous meetings and lots of patience to convince investors to commit. It also takes entrepreneurs away from running the business.
9. Recognize that once you raise money, it and your investors need to be managed
When investors decide to give startups money, they expect progress, traction and regular updates on what is happening. It’s not like they hand over the cash and then go away while the entrepreneur gets to do what he or she wants. Instead, startups need to continually manage their investors, which takes time and effort.
10. Enjoy the work because startups can be a 7/24 activity
Startups are not a 9-to-5 job that lets you go home at the end of the day without any work distractions. Startups are beasts that can be consuming so you had better enjoy the journey.
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