Living in the Age of the Startup Business
If there’s one thing the Millennial generation will likely be known for – aside from a buzzword – my money is on their entrepreneurial prowess for the small business startup.
This is a product of our environment. In a market saturated with bleak news about the availability of jobs only just a few short years ago, perhaps the only likely conclusion was to create new jobs. Startup companies have been the answer for young bright minds in need of a worthwhile career.
Startups are heavily engrained within our makeup today – it doesn’t take much more than an active cable subscription to make that diagnosis. Shark Tank is a popular reality show where entrepreneurs pitch their business ideas to successful moguls like Dallas Mavericks’ owner Mark Cuban, figures that can back their idea. Later this year HBO will launch Silicon Valley, a comedy series about a startup tech company from the maker of Office Space.
Not all startup companies are built to last – occasionally they require the assistance of larger and more stable companies to really take flight. Sometimes all they just need is a good startup CFO (Chief Financial Officer) to manage your finances. Many entrepreneurs have turned to Worry Free Labs in order to see their startup dreams become reality.
What budding entrepreneurs need to know is that the vast majority of startups don’t carry the same romanticism as Apple or Google – you don’t just work out of a garage and find yourself among the Fortune 500.
The fact of the matter is that startup owners need to act and react in a time crunch. There’s several pitfalls that need to be avoided in the first few months of operation, pitfalls that can threaten the life of your startup. Here’s a few to consider,
Determining partners, investors and cofounders
Most successful startup operators suggest that business partnership relations function similar to a marriage. Just like divorce can sink your marriage, business partner breakups can easily sink your startup company.
Decide if your business partner compliments your own brand of skills. Can you tolerate the person? If not, buckle up – you’ll be spending the majority of your waking hours together.
Not making hiring/firing decisions in a timely manner
If the old adage that time is money holds any truth, this becomes especially important to the bottom line of any startup. A less than satisfactory employee can have a damning effect on your day-to-day operations and weigh down your chances for success.
Strictly following the advice of others
Why should you operate your startup strictly in accordance with the advice people outside your company supply? Ultimately, the judgment calls fall to you and your cofounders. Sometimes it’s best to take ‘expert’ advice as a grain of salt – never ignore your gut when it comes to how you run your startup.
Always push for the highest deliverable products and services
When you’re just starting out, reputation is everything. Virtually everything your startup produces should be the highest standard of quality. Mediocrity is poison during the formative period of a startup business.
It’s easy to get worn down when you work the long hours associated with a startup business. Never be willing to sacrifice quality over the quantity of time you spend moving the numbers.
Don’t believe the hype
It’s easy to find your head in the clouds from time to time. While it’s encouraged to dream big, don’t lose sight to the fact that your revenue is always the bottom line. Find the right business model to ensure your company is never spending more money than it earns annually.
Choosing the right business location
It’s true, many successful businesses, have started from humble beginnings, in a garage, basement or bedroom and if you can get away with this, great!
If however your business dictates that you need to meet with clients, this isn’t always viable.
That being said, you don’t need to go for a prestigious office space in NYC!
Really take into account what your budget will allow. Consider the option of meeting room hire, or a coworking space until business established and you have a regular cash flow.
What have your experiences been when transforming your workspace? Do you have any tips or suggestions?
