Product, Process, and Employees
Updated: Sep 25, 2020
If you want your startup to survive, be realistic.
Process | Prioritize Process AND Product
Of course, you must understand your product and value proposition before creating your own startup. The process of how your startup impacts and enhances society is also vital to the success of your startup.
WeWork, a company whose valuation fell from $47B to $2.9B in late 2019 partly due to overvaluation, flawed financial decisions, and a lack of vision and proper leadership. They were not able to gain a cash flow that paid back their debts and rental fees. Startup founders need to rid their thinking of bias and make business decisions based on data, otherwise their startup will never be able to add value to society.
Product | Don’t Fall for the Dilution Trap
Investors/VCs and startup founders tend to fall into a dilution game. Investors look for startups that will increase in valuation, and startups fall into a trap of seeking new funding without improving the product (and most likely wasting a portion of such funds). This trap is coined the “Silicon Valley Ponzi Scheme” by Chamath Palihapitiya.
Don’t fall into the trap of seeking more and more funding; use what funding you have to improve your product and acquire paying customers.
Your Employees | Don’t Overshoot Your Shot
Hire the most valuable and capable directors and managers who will guide your company in the right direction. With that in mind, very young startups need to move a million km per hour.
You also need to hire quickly to get work done quickly. But don’t interview dozens of candidates for the same role yet not hire because you’re waiting for the “perfect candidate.” There is no such thing as the perfect candidate. Hire someone who is adept, intelligent, and can be nurtured.
We’re your next CFO. You need more than a bookkeeper and less than a full-time CFO. Accounting firms or bookkeepers simply do your yearly tax return but who can help you with the day-to-day accounting & finance complexities that every small business face? We’re the tenacious partner who will work closely with you to create a strategic path forward. A path that positions your startup for optimum performance, prolonged growth, and limited risks.
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Still not convinced? Ask yourself this:
Is your financial system set up and organized?
Do you know your company's outlook in 3-5 years?
Are you aware of key factors that impact your financials?
Are you prepared for tough questions from VCs?
Focus on generating revenue. Leave the rest to us. Contact us today for a free consultation.
Until next time,
Rich Zhou, CEO