Over the years, I have had the pleasure of working with a long list of entrepreneurs and the startups they founded. I’ve seen failures and successes, and while there are unique variables that influence the performance of every young company, there’s a common theme among those that ultimately thrive: founders pay due attention to the “boring” but incredibly vital organizational pillars.
The trap that many founders fall into is that they focus all their attention on building the product and raising money, with no time for anything. This makes sense, especially considering that for a startup to develop, it must offer a useful product and often requires financial resources to finance it. But running a successful business is greater than that – much more.
I understand that most founders have plates that are continuously falling apart, and while the founder may not necessarily be the one dealing with the intricacies of the issues I write about below, a successful entrepreneur appreciates their importance, takes the time to know how each of them these pillars will profit their startup and at least delegate these responsibilities to a reliable team member or trusted business partner.
Stop doing these 4 things if you wish your business to survive
“Boring” business pillars that should not be missed
Finance/accounting
As the founding father of an accounting firm, I’m used to my eyes glazing over when talking about funds. I see. The problem is that many entrepreneurs, when they hear the word “finance”, think about obtaining funds from investors and nothing more. It doesn’t matter whether you raised $10,000, $10,000,000, or went the bootstrap route, it’s essential learn the basics of operational finance.
What does your money flow appear to be? How much are your overhead costs? Will you find a way to rent this latest developer? How do tax returns affect your reserves? How long is your financial runway?
These questions are just the tip of the financial iceberg for your startup, and the sooner you strategize to higher understand this area, the more clarity you’ll have, not only in knowing the answers to those questions, but also in the overall financial health of your organization. I’ve seen too many promising startups undermine their success by taking a passive approach to understanding their funds. Conversely, I have seen many people grow and thrive by firmly grasping this pillar.
Legal
I’ll say it right away: if you are an entrepreneur without a lawyer, stop what you are doing and get a lawyer. During your initial journey, you’ll reach impasse after impasse that would require legal advice. No, not a Google search, but a real lawyer.
Do you must raise money? You will need a lawyer. Want so as to add a partner? You will need a lawyer. Have you received a stop and desist letter from a competitor? You will need a lawyer.
You get a point. Hire a lawyer.
Having legal advice on speed dial is a must in the entrepreneurship space. Sometimes you’ll have them to create actual products like contracts, and sometimes you may just have to bounce an idea from them to make sure the idea doesn’t land you in hot water. Your lawyer will accompany you throughout the lifetime of your startup, and the earlier you determine this relationship, the higher.
5 areas of your business it is best to outsource
Human resources
Are you planning employment? If so, I highly recommend cultivating an appreciation for the discipline of human resources. As your startup grows, you will probably manage your personal staffing needs, but even if you are just considering hiring your first few employees, it might be clever to seek the advice of with a human resources expert.
Different locations have their very own rules it’s essential concentrate on, and it’s essential fully understand the nuances of working with gig employees, freelancers, part-timers, full-timers, interns, and any other categories of employees you’ll encounter and engage with.
Of course, as of late it’s essential stay awake thus far with the caveats surrounding distant work. Now that we have emerged from the pandemic lockdowns, it has develop into incredibly clear that the way forward for the workplace (for many) will probably be a hybrid of in-person and distant work, if not entirely distant. If you intend to be an employer in any of those categories, do yourself a favor and get HR help quickly.
The basis of every strong business is a strong team. A human resources specialist will enable you to administer the growth and development of people that will make it easier to achieve your entrepreneurial vision.
Public relations/communications
The most successful entrepreneurs realize that to realize their business goals, they’ll need to speak the value of what they do to their desired audiences early and often. Far too often, I’ve watched founders of a company get a few months past their launch date and only then realize, “hey, we could use some press.” While the phrase “better late than never” may apply to those situations, it’s a far cry from the spirit of proactive communication I’ve seen from top-tier founders.
Instead of treating your communication efforts as an afterthought, I encourage you to make them a key pillar of your organization. As you build latest features or product lines, consider when and the way you will communicate these efforts to the individuals who have to know about them. Also consider crisis communications and the way you will proceed to advertise your startup’s story in times when you are not publishing latest, exciting tidbits. Own your organization’s narrative and never take your foot off the pedal that gives it momentum.
Always strengthen these pillars
Of all the entrepreneurs I have worked with, the most successful are those that have based their business on these key pillars. But going forward, they continuously nurture each and every one of them. There are many twists and turns in the lifetime of a business, but if you consistently invest in these 4 basic elements, you may have a higher likelihood of turning your idea into profit.
Verizon Small Business Digital Ready: A free resource to learn essential business skills, the latest digital technologies, and more.
(*4*)