One thing I recommend founders to do is to think of the company as being a portfolio of projects, and the founder as being the strategic owner of this portfolio. Each specific product or service that the company is offering is a project in the portfolio that sits under the umbrella of the company. Then they can look at the maturity level of each project and the company itself. For example, a company that is offering a service to a customer base and at the same time is thinking of how they can translate that service into a SaaS product offering, may already have a good problem/market fit for the company itself, be in efficiency in terms of delivering the service and be just starting validation for the SaaS service.
Bootstrapping is when Customers fund growth of the company, not Founders
When most people speak about a Startup’s funding approach as “bootstrapping”, they often are referring to the Founders putting some time and capital into the company. This is actually an incorrect use of the term in Startup “speak”, as that Founder input is still an investment. And though it’s usual that Founders put some cash into their companies or minimally defer taking anything out, it’s still actually investment. Just not an external investment. It is a type of Seed Funding.
Why a Founder Needs to Cast a Team
Building a startup team based on skills is a lot like the casting activity in the film industry. Those responsible for casting a movie will look at the character in the plot, and try to find actors that they know have the ability to play the role. Though there is also a secondary look at how these actors look together on film, their onscreen chemistry. So the casting activity is actually a casting of the ensemble, not just the individual actors.
When does a startup stop being a startup? As a founder, why should you care?
Startup is a phase. Eventually a company will and should grow out of that phase. Normally in 2-3 years. To remain in Startup mode is actually to invite atrophy. A company that has emerged to a point where they have a loyal customer base and a viable business model does need to adopt some traditional customer facing processes for sales, marketing, delivery and after-sales services. Otherwise, they risk losing that customer base.
So what is a founder’s vision and how do you cultivate it?
When we think of the word vision, rather than idea, we think of something much larger. Like a diamond, rather than a zirconium. Where an idea is often flat or two dimensional, a vision is multi-faceted. A vision is complete – not in the terms of meaning it is finished – but in terms of meaning that it is whole. In in the Customer Development methodology recommends using the Business Model Canvas to articulate this initial vision. Which covers many aspects of the business, not just features and benefits.
Girls Raising event successfully showcasing startups with female founders
This week I went to a Girls Raising event in Toronto. The group’s premise is: if companies which include female founders are often more successful than less diverse companies, let’s support companies that include women founders, and give them an opportunity to hone their message and receive effective feedback.
