1. Start With a Great Idea
It might seem simple, but having a great idea -- either a groundbreaking new product or an innovative service -- is half the battle. If you have a great idea and are able to identify the appropriate market to sell to, then the company will grow organically and investors will line up to obtain a piece of the business. But if you find that you’re having trouble securing interest from investors, then something is simply not clicking. Either your idea isn’t as great as you thought it was, or there isn’t enough market potential for it. If this happens, it’s time for the now infamous “pivot” -- where you take your idea in a slightly different direction. You’ll have to keep doing this until you hit something that works, or you run out of money.
2. Find the Best People
The team behind the idea is essential to making the business stick. During your company’s time as a startup, the first 10 employees are often people who are specially fit for this phase: they’re well-rounded, flexible and extremely innovative. During the startup phase, you want a team of aggressive generalists who are able to pitch in and do anything necessary at the drop of a hat.
But as the company develops and expands over time, you’ll need fewer generalists and more specialists. You’ll need people who create the technology behind your product, a separate sales force, an operations department and a management team. And all of these people must be excellent within their given area because there’s no room for error.
If a startup idea isn’t compelling enough to secure funding but the team behind the idea is solid, your chance for investment increases. But keep in mind that the first employees who you hire very likely will not be the same ones that you’ll end up with 10 years later.
3. An MBA Education Is Not Necessary
