Think Start-Up Things

Startups comprise a big idea, a lot of work from a person and a small amount of money. The lessons learnt in starting up a business from scratch are never forgotten (i.e. calculating the cash position on a daily basis) and the fact for the businessman is that he has to do a lot of things himself, since there is no one else to do it.
A startup is market or concept led in which the opportunity is clearly identified, either as a replacement product sale or involving the creation of a new market.  Or it can be product led, where a technological breakthrough creates many opportunities and the problem is to prioritize them and ensure that the technology and its associated products are commercially applied (it is not necessarily technology itself which is the key, but the practical application of technology to market niche needs).
Behind these initiatives, there must be a committed businessman who is excited with the opportunities offered and is determined to exploit them. In terms of importance, the concept and the businessman come (jointly) first in a startup. The money (or what there is of it) comes third in a row.
In startups, 75% of exploiting a new market or product is business instinct and 25% is based on facts.
Initially, financial progress will depend upon the company’s ability to generate sales and keep overheads down. Where more substantial expenditure is necessary at an earlier-stage, the funds should be carefully controlled by the businessman himself, since the existence of a finance director, at this stage, is a luxury.
The axiom of ‘think big and act small’ is a good rule for such situations.
Replay Business © 2011 Costas Stabolas| Designed by