Bringing a business idea to life in the form of a new startup is only the beginning. The truth is that as the CEO of a startup, you’re faced with new challenges. Here are some mistakes CEOs make and tips for a more effective approach to startup success:
“I’ll sell my old baseball cards to get up and running”
If you “bootstrap,” do you have sufficient cash flow to sustain operations before you turn a profit? If you’ll look for funding, what’s your strategy for securing prospective investors?
“Business model? I don’t need no stinking business model!”
Okay, Groupon’s founders didn’t know how their business would make money. They’re an anomaly. Don’t take that approach (unless you want to end up like Critter or LinkedOut). Most startups that begin this way fail — develop a business plan and figure out a revenue model at the onset.
“I’ll make money this time next month.”
Even a simple business idea takes six months to a year before it starts throwing off enough cash to support you. Have a plan (and back-up plan) for covering living expenses until then.
“My wife will kill me if I don’t hire her sister.”
Hiring friend and relatives can create significant complications later on. Always hire a team who knows the industry and its inherent risks. Your goal: an executive team that shares your vision and passion.
For more info, visit www.trinet.com/startups.