When you hear the word “startup,” what comes to mind?
For “how to build a startup,” there are 5.38 billion Google results. The majority are a waste of time.
Approximately 90% of startups fail. 10% of start-ups fail within the first year. Startup failure is most common in years two through five, with 70% falling into this category.(failory)
Here are 6 startup rules that are actually pure gold:
Harder Ideas are easier
Harder ideas are talent magnets!
The harder the idea:
- The more people are dedicated to the mission
- The easier it is to recruit top talent
- The more investors are interested
- The more “impossible” gets done
Go All in on Leverage
Work on projects that impact multiple areas.
- Improving sales motions does marketing and support better
- Optimizing onboarding impacts new revenue and retention
- Finding growth levers impacts all revenue
- Building a brand makes everything easier
The Market Needs It (Even If It Doesn’t Know It Yet)
This is a fairly common problem with startups that are in the process of introducing innovative approaches to resolving recent or foreseeable issues. When the customer finally understands what they require, which could take some time, the solution will be all set and waiting for them.
4-Hour Workweeks Don’t Work
The best businesses in the world have:
- Grand vision
- Great product
- Ability to adapt
- Great leadership
- Legendary work ethic
Real impact doesn’t happen with passive effort.
Building the “Company” Can Kill You
Conventional wisdom tells you to:
- Hire a CFO
- Hire a Lawyer
- Hire a big team
- Spend $15k/month on PR
- Build out Sales / Marketing Quickly
This is often wrong and dangerous. Focus on the output (the Product).
Make High Impact Decisions
Use this simple formula to make it easier:
Impact = Outcome x Probability
When given options, choose the one with the greatest potential impact.
This will typically give the best results over time.
In a nutshell, one must possess all of these essential rules to establish a successful startup. Rarely do logic and character stand alone as the deciding factors in a situation. A well-executed plan, well-coordinated with other initiatives to bring the desired transformation, is the essential ingredient in the recipe for a thriving startup company.