I have decided to bare my mind on some issues that I have seen regarding startups in Nigeria. Interestingly, some startups think they have every right to success because they are technology startups. All you have to do is build a website, spend some time developing an app and send a press release to technology blogs and you should succeed…..WRONG!!!
Here are seven things a technology startup CEO must be aware of, to increase your probability of success.
- Confirm there is a market for your product or service. There is a difference between possibility, feasibility and viability. There is no use creating a car that runs 700km/h in a town that has dirt roads. Please test the market. Conduct a feasibility study and prepare a business plan. Don’t let anyone fool you that a back of the envelope business plan is sufficient. Leave that for the movies.
- Understand basic financials for your business. Some startup founders do not understand anything about their financials. And they do not want admit to this deficiency. They do not know about income and expenditure, taxes, return on investment, payback period, e.t.c. Please learn, learn, learn even if it hurts you.
- Have a plan for making money from your operations. All businesses must have a plan of making money from operations instead of relying on people to invest in your business alone. Some startups are so pre-occupied with trying to raise funds that they do not bother whether the business operations can generate money to sustain the business.
- Be financially prudent. The fact that you are able to raise money does not mean you have to be frivolous about your spending. Getting a posh car or paying for rent in an exclusive suburb with your seed funds may not be the wise thing to do.
- You must be able to communicate the vision of your startup. This is particularly important when you are talking to investors, stakeholders and even your staff. Do not think that nobody will understand. It is your job as a CEO to share your reason for setting up your startup and get people to understand the need for the existence of the startup.
- Learn how to manage people. You must learn to appreciate people, manage people and let people go when necessary. Though you are the CEO of a technology startup, you must be able to relate with people.
- Learn about people who have done the same kind of business or related businesses. Some CEOs think that their startups are so unique that there is no competition. They claim that their products or services are so disruptive competition has not been created or developed. They also believe consumers will not have alternatives. Please wake up and smell the roses. There is always competition, whether in the same industry or not, there is always competition for the consumer’s spend. For people who have done the same business, learn from them whether near or from afar.
Good luck in your startup.
