Startups are supposed to be innovative, but many founders trap themselves by following cookie-cutter advice. From angel investors to business school material, there’s no shortage of ‘rules’ telling you how to build a startup the correct way. But the truth is what worked for someone else might not work for your startup. Blindly following advice will stymie growth, dampen creativity, and lead to your startup’s failure.
1. You Need a Solid Business Plan
Business plans are great for giving you direction, but a perfect business plan isn’t possible. Your business will continue to adapt and change as you go. Don’t get caught up on having a flawless business plan before you start your business. You may never get launched if you can’t get past this step.
2. Expand Quickly
You may hear the advice that you have to scale and expand quickly if you want to be successful. This couldn’t be further from the truth. You want to be very thoughtful and strategic before you grow your business. If you scale too quickly, things can fall through the cracks and your business can suffer. The damage you do can be irreparable.
3. Wait to Hire
While you want a proof of concept before you hire, waiting too long isn’t the right move either. Hire strategically so you won’t slow your momentum. As an entrepreneur, you’ll need help to propel your business forward. You can hire secondary roles and keep the most important work for you and your co-founders, if this makes you more comfortable.
4. Every Customer Is Right
While customer service is extremely important, not every customer’s opinion matters. You can’t make everyone happy in business, no matter how hard you try. Focus on your target audience and their needs. If you stay focused on this, the customers that matter will keep coming back to your business.
5. You Need to Raise Money
While it may be tempting to raise money right away, bringing on investors might not be the right fit for your business. It may be better to bootstrap it before bringing on VCs or angel investors. If you need mentorship, you can always set up a meeting at a local incubator for startup businesses. Many of these incubators have professionals in a variety of fields willing to help. They can go over your business plan with you and offer advice, without taking any equity in your company.
6. You Need to Be The First to Market
Some of the best ideas have already been taken, but that doesn’t mean that you can’t do it better. Just because there is already competition in the market doesn’t mean that you can’t provide something of value to customers that others can’t. Focus on your strengths and points of differentiation to gain customer loyalty.
7. Don’t Compromise on Your Vision
As you do more research and you launch your company, your vision may need to change. The best businesses are able to pivot and adjust to meet the needs of their customers. Plus, as you grow, you may need to make adjustments to your business model. This is all perfectly normal and part of owning a business.
8. You Need to Quit Your Job
Many investors want to know that you’re committed to your startup. But don’t quit your job if it doesn’t make sense for you financially. Many entrepreneurs work part-time on their startups for years until they have enough cash flow to take a salary. You can always hire someone to oversee your business if you need to keep your full-time job. Plus, your job may be what’s funding your startup in the very beginning.
9. Never Turn Down an Opportunity
Say that you have a business opportunity with an investor. Perhaps the fit just doesn’t feel right. There’s no harm in turning down the opportunity if it’s what’s best for your startup. In the same light, you may get orders from a company that you can’t fill. It’s better to turn down the opportunity than send them a rushed product or not be able to deliver. In many ways, you’ll have to listen to your intuition to make good business decisions and pick the best opportunities.
Launching a Successful Startup
Launching a startup can feel like a daunting task. You may want to turn to the ‘rules’ that every entrepreneur needs to follow if you want to be successful. But in reality, these rules are not one-size-fits-all. Instead, you’ll have to make good judgment calls to be successful.
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