In our last blog, I explained why it can be dangerous to fall in love with ideas and lose focus on execution. So considering that what should a startup be focusing on? Here are the three things that can make or break a startup:
It is very important to understand that a business has a legal side and having the right paperwork goes a long way. Also, think of structure in terms of the people that become a part of your business and what core functions will they be executing. Managing people is a core part of a successful startup because your team can be your biggest asset but also remember they come with a fixed cost that will be a major chunk of your burn.
Remember, as an entrepreneur you can’t do everything on your own!
There are a lot of startups that focus on the adoption of their services and products versus profitability. Keep your eyes on the prize. While investors are ok with startups bleeding for a few years in order to become a mass accepted service/product, this usually motivates people to lose sight of the cost of customer acquisition and then most things go downhill from there. Any resource whether time, energy or money is spent must have a measurable and acceptable return on investment!
No one wants to invest in or run a company that can’t grow beyond its first ten customers. There must be constant innovation and growth because that is an undefined goal of every startup. It’s crucial to keep an eye on the competition, changes in technology and ensuring your concept is future proof.
Someone bought 500 horses a day before the car was invented!