It’s well known that the vast majority of startups collapse within the first year. Fortunately, this hasn’t dissuaded today’s most innovative entrepreneurial minds from still taking risks and trying to build their own businesses from the ground up.
Disruptive technologies, the introduction of new Gen Z professionals into various industries, and other global economic events have created extremely risky but fertile grounds for new enterprises with great ideas. If you’re determined to turn your dream into a thriving and not just surviving company in 2020, here are some startup growth fundamentals to keep in mind.
Form a Killer Founding Team
“Creating a startup can be hugely stressful, as you have to stretch yourself outside of your comfort zone, and you might not have the kind of money, resources or support that you’d ideally have in those early days, and it’s often a make or break period for any startup,” recalls fintech startup XanPool founders Artem Ibragimov and Jeffery Liu. The two also explain that apart from being highly skilled or talented people, founders should be able to face the intense initial growth and development stage while still being productive — something that these founders consider vital to how they’ve kept XanPool relevant in the cutthroat digital crypto-fiat exchange sector. “Selecting the right founding team is undoubtedly the most important aspect of any startup. Ideas can change, but the founding team is usually more enduring, so it’s key to get it right.”
Have a Realistic Brand Valuation
Study the ISO Brand Evaluation Standards to get an accurate calculation of your brand’s current monetary value. Figure out your valuation via the cost approach, market approach, and income approach — basic valuation parameters used by the aforementioned ISO standards. Another crucial aspect of valuation is brand health: its estimated change in value over time — based on market performance, management, socioeconomic events relevant to the brand, financial environment, legal and political changes, and other factors. Having this type and level of competitive intelligence not only determines the effectiveness of your long-term business road map but also shows investors that you have a realistic idea of your brand’s current status and place in the market. As our own Rais Dar explains that having the right data in your hands is a prerequisite for startup growth.
Utilize Innovative & Flexible Workspace Models
Coworking spaces can be very useful for struggling with new businesses. Apart from providing startups with decent workplaces for much less than the costs of renting traditional offices, coworking spaces also afford them the chance to operate in the middle of metropolises – where they are better placed to network and collaborate with other businesses. Today, these spaces can be found in both small and large cities all over the world. In the U.S., leading co-working space Industrious has a foothold in Kansas City, Chicago, New York, and many more hubs around the country. In the UK, London alone boasts more than 10 WeWork locations open to both individuals and companies alike. Here in India, WeWork has 38 coworking spaces spread out across Hyderabad, Bangalore, Mumbai, Chandigarh, Noida, and Gurugram – on top of the many other smaller flexible workplace providers operating locally. Leveraging these spaces can give companies opportunities for scaling quicker than anticipated.
Remember: Be as flexible as you can with your limited resources. Never lie about your valuation, especially to yourself. And make sure that each and every member of your founding team not only have the expertise, but also the right mindset for scaling a company in today’s increasingly competitive landscape.
