Startup Guide Issue 16 | Page 23

W hi l e ment or i ng and j udgi ng dur i ng s t ar t up compet i t i ons , one not i ces t hat a l ot of s t ar t ups cons i s t of member s wi t h t he s ame backgr ound - al l mechani cal engi neer s , el ect r i cal engi neer s and s o on. W hen r unni ng a s t ar t up, i t ’ s i mpor t ant t o have di ver s e s ki l l s and backgr ounds i n a t eam. I t i s advi s abl e f or t hem t o go and f i nd a par t ner wi t h a bus i nes s backgr ound. W hat i s your t ake on al l t hi s ? Tha t i s t ot a l l y c or r e c t , y ou mi g ht not ne c e s s a r i l y ne e d a n MBA i n y our t e a m, but i f y ou ha v e e ng i ne e r s i n y our t e a m, t he n y ou ne e d s ome one wi t h a bus i ne s s ba c k g r ound. Howe v e r , i f y ou a r e a g i f t e d e nt r e pr e ne ur , t he n y ou c a n pl a y mul t i pl e r ol e s . Wha t I ’ m s a y i ng i s t ha t t he s e r ol e s ne e d t o be s l i c e d up i n a s t a r t up . F r om s a l e s a nd de v e l opme nt t o ma r k e t i ng a nd pr oduc t ma na g e me nt , t he r e a r e v a r i ous r ol e s , whi c h a r e i nde pe nde nt a nd t he s e s houl d be c r e a t e d f r om wi t hi n t he or g a ni z a t i on. W hat i s your per s pect i ve on s t ar t ups havi ng a cl ear s t r at egy? Do s t ar t ups need t o at l eas t have s ome s or t of s t r at egy or becaus e t hi s i s t he s t ar t up cul t ur e t hat you ar e s t i l l i nnovat i ng, you don’ t need t o have a s t r at egy and j us t go wi t h t he f l ow? S t r a t e g y me a ns y ou ne e d t o bui l d a pr oduc t . S o, s t a r t ups ne e d t o ha v e a Nor t h S t a r . The y s houl d k now t ha t t hi s i s whe r e t he y ha v e t o r e a c h t o t hi s c e r t a i n poi nt . I us e d t o be v e r y s t r ong - he a de d. Thi s wor k i s ha r d. Y ou ne e d t o be s t r ong i n y our he a d i n t hi s wor k a nd mos t l y pe opl e a r e not ope n t o f e e dba c k . F or a n e nt r e pr e ne ur , i t ’ s ne c e s s a r y t o be ope n t o f e e dba c k . Ha v i ng a Nor t h S t a r i s g r e a t , but do t a k e f e e dba c k a nd don’ t ma k e t a k i ng f e e dba c k a ma t t e r of e g o. No one e v e r ma k e s mone y a s a s t a r t up or bui l di ng wha t y ou s t a r t e d out a s . P e opl e a l wa y s s t a r t e d doi ng s ome t hi ng c ompl e t e l y di f f e r e nt . Y ou mus t ha v e he a r d a bout Ai r bnb . Ba s i c a l l y , i f y ou’ r e a l ow i nc ome pe r s on l i v i ng i n Ame r i c a , y ou k e e p a n Ai r ma t t r e s s f or t he g ue s t s ; whe n s ome one c ome s , y ou j us t f i l l i n a i r i n t ha t a nd g i v e i t t o t he m t o s l e e p . Tha t ’ s how t he y a r e a c c ommoda t e d. S o, t wo y oung s t e r s t houg ht of r e nt i ng out t he s e a i r ma t t r e s s e s ; t ha t ’ s how Ai r bnb s t a r t e d: Ai r Ma t t r e s s , be d a nd br e a k f a s t . Thi s i s t he s t or y of t he i de a be hi nd t he s t a r t up , but i t di dn’ t wor k be c a us e no one wa nt e d t he s e unc omf or t a bl e ma t t r e s s e s . S o t he y s t a r t e d t o wor k on t he ‘ be d’ pa r t of Ai r bnb . The y s t a r t e d s e l l i ng Oba ma Che e r i os . Tha t di dn’ t wor k e i t he r , s o t he y s t a r t e d r e nt i ng out r ooms . The n t he y wonde r e d how wi l l pe opl e k now how wi l l t he c us t ome r s k now whos e r oom i s up f or r e nt . S o t hi s i s whe r e g r owt h c ome s i n. Whe n a n y one pos t e d a bout t he i r r oom up f or r e nt , t he s e boy s us e d t o e ma i l t he m t ha t y ou c a n l i s t y our r oom on our we bs i t e a s we l l . S o t hi s i s how i t a l l s t a r t e d. The y c ompl e t e l y c ha ng e d t he i r or i g i na l i de a i nt o t hi s . “ A s t a r t u p i s a t e mp or a r y or g a n i z a t i on l ook i n g f or a b u s i n e s s p l a n ” One l as t ques t i on, when does a s t ar t up s t op bei ng a s t ar t up? T hi s i s a v e r y e a s y que s t i on - a s s oon a s t he y f i nd a r e pe a t a bl e s k i l l s e t a nd bus i ne s s pl a n. A s t a r t up i s a t e mpor a r y or g a ni z a t i on l ook i ng f or a bus i ne s s pl a n. A l ot of pe opl e a r e l ook i ng f or f undi ng ; whe n t he y do, i t i s y our j ob a s a n e nt r e pr e ne ur t o l ook f or a bus i ne s s pl a n a nd s k i l l s e t t ha t i s r e pe a t a bl e a nd c a n be i mpl e me nt e d. Onc e y ou f i nd t ha t y ou a r e a pr ope r c ompa n y wi t h a r e pe a t a bl e c ha ng e c y c l e . As s oon a s s ome one ha s wr i t t e n down a 30 mi l l i on c he c k f or y ou, t he y a r e now l ook i ng f or y our c r e de nt i a l s whe t he r y ou a r e s ui t a bl e t o be t he CEO or not . Wha t ha ppe ns i s t ha t t he f ounde r s who s t a r t t he s t a r t up , f i nd a s ui t a bl e bus i ne s s pl a n a nd s a l e c y c l e , de mons t r a t e t ha t i t c a n be done , do a 30 mi l l i on r ound a nd t he n s t e p down a s CEO a nd t he n a ppoi nt a pe r s on wi t h t ha t s k i l l s e t f or hi m t o e x e c ut e t he i r i de a s i n t he r i g ht wa y . Whe t he r y ou' r e t he f ounde r of Appl e or Goog l e , y ou wi l l a ppoi nt a CEO who ha s t he s k i l l s a nd i s c ompa t i bl e wi t h y our c ompa n y .