What Did I Overlook When I Opened My Startup?

If you are reading this article you are either searching for some inspiration for the early stages of your startup, or you have a lot of experience in this field and you are looking into it out of curiosity. Either way, take into account our suggestions and apply them in the new stage of your professional life or share them with someone who’s in need for some advice!

Life in startups is kind of like a roller coaster. There are some powerful and even depressing downs, but they are easily compensated by addictive highs filled with rush and adrenaline. The addictive taste of success is the one thing that will get you going.

What are the things experienced entrepreneurs went through and wish to share with those that are new to this area? Here are some facts you, the young entrepreneur, should expect from the tough startup life!

#1 Investors Will Make Excuses When They Don’t Want To Invest

You will most likely find yourself in endless meetings to get the funding that you need. It will probably take some time until someone will agree to invest in your project, too. The fact that you are a beginner and that you don’t master the art of pitching will be the main cause.

What you need to understand is that, when the investor you are having a meeting with will politely decline your request, you must ask for feedback. Simply ask what went wrong in your presentation and what they believe that you should improve next time. This way you are only increasing your chances of getting the money you need.

#2 Acquiring A Lot Of Money Does Not Equal A High Income

Now, you there will be a moment when you will get the funding you need. You may even receive more money than you would have thought. However, this does not mean that you should set a high salary for yourself. Instead of receiving a 6 figure salary, try going for a smaller amount of money.

Unexpected issues will come across and you want to be prepared for everything. So, if you really want everything to work things out with your startup pay yourself less and save the rest of the most for these unpleasant situations.

#3 Turning Things In Your Favor

We are talking about negotiating. More specifically, about making the mistake to offer an adviser, for instance, most of the things they are asking for, way too early. To picture the effects of this phenomenon even better, we are telling you that you will need to use your options pool much faster than normal.

If the adviser you are currently negotiating with wants a large number of shares, ask for a contract where they will specify the services they are providing you with in exchange for those shares. Your options are incredibly valuable, so treat them carefully!

#4 Most Startup Network Events Are Useless

Some of these events are really worth it and participating in them can really help you a lot. Unfortunately, as some experienced entrepreneurs are stating, most of them are wasting your time.

How can you know if a startup network event is really worth it? Look at the people who are attending. Are there any bright minds you could learn something from? Could you maybe identify some potential new clients? One more tip: look for events based on invitation only. They are more intimate and they will help you build new relationships and, why not, new business partnerships!

#5 Hiring The Right Team Members

Your startup is on the right track and you are looking to expand it. You are hiring new people, but how do you which one is right for your company? What should you choose between an experienced employee and an inexperienced one?

Most people would say that the answer is quite obvious. The one with the huge background, right? However, we tend to disagree with this view and here is why: even though the experienced employees might have done a great job in their previous workplaces, it does not mean that they will fit in your company. Not only that they will ask for a high income, but they are most likely to thrive in a corporation. Also, they don’t have the ability to move fast enough and they are used to rely on other people.

The inexperienced employee, on the other hand, is the one who wants to succeed no matter what. He will adapt to your business, will bend and fight to get his breakthrough. He is the one you should be looking for!

#6 The Entourage

Nope, we’re not talking about that TV series! We are talking about your social circle. The people you spend time with. Remember how your family used to tell you to hang out with the smart kids? Well, those weren’t just empty words.

Being surrounded by smart people that you can learn from and who are in the same business as you can only have a positive outcome for you. Start hanging out with other entrepreneurs! They will help you develop your skills and give you precious information from the startup world. You never know when these bits and pieces might come in handy! Also, return their favor and help them out whenever they need!

#7 Your Mentor Is Not Always Right

Every new entrepreneur should have a mentor, someone who can offer him the guidance he needs to avoid doing certain mistakes. They are precious “assets” to every newborn startup and without them 90% of startups would probably fail.

A mentor will provide you with general business advice, but if you are looking for something that is more in-depth, it is better to go to someone who has experience in that particular industry. If your mentor does have it, you’re all set! But if he hasn’t, you should look for someone else right away. Don’t be afraid to question your mentor’s advice if you feel that something is not right!

Being an entrepreneur is all about keeping your feet on the ground. Having realistic expectations will have an extraordinary impact on your startup, on the overall, and it might even smooth things for in tougher and maybe darker circumstances.

So, how does entrepreneurship look from this perspective now? Are you still in willing to make a difference and start your own business?

 

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