7 things you (don’t know) you knew about startups

28.01.2019   |  Startup

In order to be successful as an entrepreneur, you need to be very focused and careful about details. Since this tends to make you neglect the big picture, here are seven things you always have to keep in mind:

  1. The development cycle of a Minimum Viable Product (MVP – in simpler words, something close to a prototype) may be of up to three years. You should add a few more years for the transition to a cyclical business model to see why a company may be called startup even after 10 years since founding.
  2. If your startup is in Romania, you may access various business accelerators/incubators. You may find a relevant list at romanianstartups.com, where there also are directories of incipient entrepreneurs and businesses, which may help you realize in what phase you are. The alternative is the governmental program startup-nation.ro, which offers financing of up to RON 200,000, although it has been criticized for various reasons. Do not dismiss these resources outright. By accessing them, you may get, if not resources, at least knowledge.
  3. “The rich get richer”. You may have heard this saying, which also goes for startups. On the one hand, you cannot start only from work and passion: you would also need some minimum funds. On the other hand, the successive financing stages of an incipient business mean exactly that you will access a bigger financer based on smaller financers. To be listed from the very beginning is as farfetched as creating a corporation from own funds, assuming you are not the heir of a family like the Rockefellers or Gettys.
  4. You have buried a startup? Do not hide yourself into a convent. According to Forbes, 90% of startups are failures. According to a study by the specialists in Berkeley and Stanford, the ratio is 92%. , It may seem strange, but the failures by those who have already failed are far less, expressed in ratio.
  5. Why would you invest in marketing, if you have little resources as you do? There is a reason: If you have somehow started to learn on your own how to use social networks and Google ads, think about how many hours of work you have done just to get poor results or even to make a fool of yourself. Do not think that the alternative to doing it yourself is tens of thousands euros: there are specialists who get good results with far smaller budgets.
  6. “I have 10 years of experience in corporations, I can always start work as an entrepreneur”. Yes, but do not forget what human resources specialists say: the qualities of the business innovators are mostly different from the ones of a successful manager in a big company. The latter has to be conservative and precise considering the hierarchy of the company itself, whereas the former needs vision, leadership and the ability to take risks. Thoroughly knowing a market is, in principle, the main asset of a founder. However, to this, you should add the qualities of an entrepreneur.
  7. Do you think that a startup is a solitary battle that you will have to fight for a long time? This is not at all the case. Even in Romania, there are enough entrepreneurs. Just look and you will find them, the possibility of encountering a direct competitor being minimal, In exchange, you will be able to profit from their energy and advice, as this means, as you probably know, networking. In order to evolve as an entrepreneur and to access funds, you need exactly that, networking.
Octavian Pătrașcu  |   28.01.2019   |  Startup

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