Jason Foodman is an experienced SaaS & Fintech executive with a focus on Sales, Partnerships and Business Development.
Of the dozen startup ideas I have had, some never got off the ground, a few launched and failed, and thankfully, a handful of them succeeded. I ultimately sold two of those companies on NASDAQ. I traded another business for a lifetime supply of printer paper. Not all wins look the same.
Over the years, I have learned countless lessons in starting, scaling and selling a company. As it’s often said, the painful lessons are the ones you remember the best.
Having seen so many combinations of success and failure has undoubtedly helped shape my perspective. With that backdrop, if you are a first-time founder, here are the five things I highly suggest you think about upfront.
Find the right partners.
Most likely, you will need partners right from the outset. Occasionally, someone does it all by themselves and succeeds, but it’s incredibly hard to create a successful company from scratch. Most likely, you will need help to do it. Find partners you trust and believe in who ideally have skills different from your own so they can bring something to the business that you aren’t providing. Similarly, find investors who believe in you and your vision and will partner with you to help you get where you’re going.
Be patient.
It will take longer than you anticipate; it always does. With rare exceptions, almost every successful business takes time to get traction.
Consider cost.
It will cost more than you anticipate; it always does. I often see very detailed financial plans that even an experienced entrepreneur may consider reasonable. Somehow, life and circumstances always arise that make everything cost more than was planned.
Be prepared for hard work.
Very few successful companies got there without the founders working tirelessly. Make sure your family and loved ones are on board and view the endeavor with a similar priority as you do. You’ll need their support throughout, as the business will consume you more than you expect. Passion and belief in the vision and mission of the business will get you through the hard work. If you’re starting without passion, save yourself the trouble and don’t even start.
Be open to change.
Many things, big and small, will not go according to plan. No matter how much experience you have or how good your advisors are, life has a way of throwing curveballs. In the tech space especially, everything is moving fast; the market is changing and evolving quickly, and someone somewhere is likely working on something similar. There is a very good chance one or more of the fundamental aspects of your plan and solution will need to change. The key trait here is adaptability; you need to be both focused and determined but also remain open and flexible for changes and adjustments that may need to occur to get the success formula right.
Planning For Future Success
Keep all of the things above in mind when creating your business plan, especially when it comes to timetables and forecasts. It’s best to create contingencies and have a plan with provisions in place should circumstances not follow your originally anticipated path or timeline (because they almost for sure won’t). Remember, it’s also a mental game. When setting goals, place milestones in your path and take the time to celebrate your wins when you and your team achieve them. Think of your plan as smaller sprints to the finish line rather than an endless marathon.
In addition, don’t be afraid to ask for help. In addition to your partners, consider hiring specialized contractors and employees who are smarter than you, bring value to the company and are enthusiastic about their work.
In the end, make sure to have an exit plan (or at least a concept) in place. Think about and discuss openly with your partners/investors that when the time comes, you’ll know when to pivot, sell, or even walk away and what that would entail. When you have a plan in place, all of these possibilities feel less scary.
If any of this advice sounds discouraging, don’t let it deter you. Starting and operating a business can be one of the most exciting, gratifying and wonderful experiences anyone can have.
As you find your formula for success, my advice is meant to help you set realistic expectations about what’s involved and how things will likely play out. If you go into your new endeavor with your eyes open, flexible, and with realistic expectations, you will eliminate a lot of potential frustration should things not go according to plan, take longer than expected or cost more than expected.
Forbes Business Council is the foremost growth and networking organization for business owners and leaders. Do I qualify?
Read the full article here
