Three Startup Areas That you Want to Choose Wisely
Learn how to make better decisions within your startup by focusing on these three areas!
Growing up, my parents tried to instill in me the importance of good choices. Whether it be about friends, school, life, etc. try and give yourself good options as well as be careful to make the wise choice. Consider long term implications and not just the short term. In entrepreneurship, the same thing applies. I’ve recently spoken to several entrepreneurs who are struggling to work through some poor choices in their business.
Choosing the right market
Picking the right market is one of the most underrated decisions in entrepreneurship. Great entrepreneurs have kept the business afloat or built a moderate growth business in a bad market just by their sheer willpower. But for a business to truly take off, being in a rising tide market is critical. Take the time early to find a market you are passionate about, has potential for massive growth (even if niche today), that has signs of authentic demand, and that you really understand the customer and problem. Solutions can easily pivot, but much harder to pivot a market once you have started the business.
Choosing the right co-founder
If you are a non-technical founder, it is tempting to want to quickly bring on someone who can write code. If you are a technical founder, it is tempting to quickly bring on someone who promises to sell the product. While finding a co-founder to balance your skill sets is important, be careful rushing into the decision. Instead, take time to find someone you trust, have worked with over a period of time (even if a trial period as a consultant), and who shares your core values. A co-founder who shares your core values and brings diverse skill sets to the table is ideal. A business can easily fail because of co-founder strife that blows up the business internally.
Choosing the right investor
Depending on what path you want to take, not every business needs to raise money from investors; there are several other options to fund your business. Similar to how investors want to see lines not dots, entrepreneurs should do the same. You are making a commitment to each other that will last for years - make sure to do your due diligence. Is the investor entrepreneur friendly, what are their strengths, what experiences do they have, do they fit your core values? I encourage entrepreneurs to talk to founders who worked with the investor and whose business did not work out. If they have great things to say in spite of it not working out, that is what you want. However, if you only talk to ones that had good outcomes, it is often in times of struggle that the true colors of a bad investor come out. A bad investor can ruin your experience and your ability to raise money and grow the business in the future.
Know that any choice of co-founder, investor, or market is a 7-10 year commitment for an entrepreneur. Be sure to do your diligence, find spaces/people you believe in and are passionate about, and think about the long-term.