Many startups are founded by domain experts – people who deeply understand the problem they want to solve. They possess extensive knowledge, unique skills, and create a product that truly delivers value. But is that enough to build a scalable business?
The startup world is full of rules of thumb that sound impressive but are often highly overrated. Such a cliché is the “Hire fast, fire fast” concept – the idea that speed is everything when building a team. It sounds dynamic, aligns with the “move fast and break things” mentality, but… does it actually work? In fact startups that blindly follow this approach may end up trapped in an endless cycle of hiring and firing instead of actually building a team that delivers results.
Startups are often surrounded by a certain mystique, frequently portrayed as thrilling journeys fueled by passion and innovation. While it is indeed an exciting endeavor, the reality is far more demanding. Running a startup requires grit, strategy, and focus on execution. Through my work with startups and small tech companies as a consultant and mentor, I’ve encountered several myths that deserve to be challenged. Below are a few I’d like to address. By dispelling these myths, I hope to encourage a grounded and realistic approach to startup building.
In the fast-paced world of startups, where budgets are tight, resources are stretched, and runway is limited, math and analytical skills are essential. More than just numbers on a page, these skills form the foundation for sustainable growth, and informed decision-making, Startups, particularly those in tech, face increasing costs for tech talent, IT infrastructure, and AI tools. In this environment, every financial decision impacts cash flow and profitability, making it vital to have a math-savvy approach.
As a business consultant and startup mentor I have the privilege of working alongside startup CEOs, helping them streamline their businesses in resource-constrained environments. Today, halfway through another accelerator program with inspiring international startups, I’d like to share some insights on how AI can elevate a startup’s operational efficiency. The key lies in not just using AI but in developing the mindset to work with it effectively.
Today I would like to dive deeper into area of controlling. Beyond budget management, it’s about steering various aspects crucial for success and financial result of any startup.
Today I would like to touch upon an underrated aspect of effective management in startups and small companies. It is the development of business and legal awareness within the team. Companies that invest in developing their employees’ business awareness experience significant benefits. This includes improved profitability and better strategic decision-making.
In today’s dynamic business environment, small tech companies face unique challenges when it comes to scaling production and sales. One of key factors determining their success is the adoption of a measurable approach, as it helps to better manage activities and processes within the company. For the Board of Management this involves not only effective financial management but also focusing on key performance indicators (KPIs) in the commercial and operational realm.
While strategy and product-market fit take center stage in the startup spotlight, don’t overlook the silent heroes: processes and structure. Do you believe that small teams can bypass processes? Think again. As your team grows, chaos grows. Demystify the myth that processes are exclusive to big players.
The power of visionary leaders lies in their creativity and will to achieve their goals. The visionary leaders’ minds are capable to generate many ideas, often on the spur of moment or sudden intuition. However, with limited resources they have, in order to implement those ideas, they need to select and prioritize. To do so they need critical thinking.