Five Lessons Learned From Working With Startups
Written by Felistas Makene
While working with startups within the broader context of the startup ecosystem in Tanzania, We have come across projects in which we work directly with startups. More than 20 startups in the few sectors of fintech, Health, and Agriculture. I have encountered a few issues that are helping me understand how the startup ecosystem works. Here are a few lessons from working and interacting with startups focusing on different projects.
1. Knowing the problem and the solution.
For any founder starting a company, one of the main things they need to do is develop skills to run a successful business. But also knowing the real problem that you need to solve is very important. What you are coming up with must match the real problem. Having a passion for what you do will make your company successful.
2. Startups only sometimes finish what they have started.
Many startups still need to finish what they started. They may get funds from different sources for them to start a business. However, most of them will use the money for the first installment to hire. Someone to do some of the needed work will then ask for the next installment, of which they will use the money for personal use and not complete the work they are supposed to do.
3. Building a committed team.
One of the core reasons many startups fail in the early stages of building the company or business is a conflict between and among the company’s founders. After the first investment was raised, I realized that the team put the idea of how the money should be used first rather than on how to build the company correctly. I have encountered one startup having internal conflicts after receiving funds from a donor; three members are the only ones who have access to the money, while the other two complain that they need to know where the money is going and how it’s being spent.
4. How to prepare a pitch deck and deliver it to potential investors is still a massive problem for most startups.
Most startups need to gain adequate knowledge and capacity to prepare the right pitch deck and deliver it to potential investors. I have received little feedback from investors, saying most startups spend much time telling a story, and others pitch negatively.
4. Customers are motivated by the products and services you offer.
Many founders must remember that customers don’t exist to buy their solutions or products; instead, they live because a startup is solving their problems. One of the things founders forget is to improve their outcomes after seeing money coming in from the customers/ users of their product. Money should be used to improve the service/product you give to customers/users.
5. Understanding competition and competitors.
Companies and businesses are operating in a dynamic and competitive world. Thus, founders must recognize and remember that they constantly compete in terms of resources, markets, and new products. Founders must continuously stay up-to-date with the changing nature of the operations of their startups.
In addition, funds are increasingly becoming rigid to raise, and many startups compete for a small pool of investors. Nevertheless, most startups need help understanding how to navigate the complexities of raising funds and being able to beat the competition.
#innovation, #entrepreneurship #startupworld #ecosystem.
