What does it take to launch a successful startup?
At SOON_ we strive to work in close partnership with our startups, who are products of innovation, entrepreneurialism, courage and passion. As a tech startup ourselves, we fully appreciate the challenges and frustrations of getting a new business off the ground.
Startup Sessions was a new event for entrepreneurs from a range of industries, creating a space to share their experiences. They are designed to bring together a host of startups who we’ve worked with over the years or who have inspired us.
All the startups we hosted were from various industries, at different stages of funding and founded by a wide-ranging mix of entrepreneurs. Topics included the challenges around funding, staffing and pivoting to remain competitive.
On funding
Once you have the foundations of your business model outlined and feel ready to initiate the first steps in turning your idea into a reality, you need to address the subject of money & secure some investment. Convincing someone else that your business is worth their money is no small feat.
Sarah Hesz, co-Founder of Mush Mums, emphasised that the act of pursuing investment “…shows a real sense of reality, of ambition and of what you’re trying to achieve. You know the scale of what this entails and that you are aware you need to get money early on.”
By seeking investment you demonstrate strength and belief in yourself.
Sarah went on further to say, “taking an idea and turning it into a startup is hard work for a lot of reasons as it usually costs a lot of money and fundraising isn’t something you should be ashamed of doing. This idea that fundraising requires a really strategic method of approach with multiple consultants with strong expertise is a myth. Actually, like most things in life, fundraising is about networking and talking to a lot of people until you find those who share your vision, understand your idea and believe in what you do.”
Katy Theakston, founder of The Owl and The Apothecary, demonstrated perfectly how the right people for your business will get involved if they truly believe in what you are doing:
“I have an advisory board, of four women who are all experts in their field…they have no monetary involvement, they are onboard because they want to support women in business.”
However, not all investment is in good faith & just because someone is willing to invest, does not mean you should jump into bed with them straightaway.
Rob Watt, MD of TBSeen.com learnt this first-hand and made a point that“getting investment isn’t just a matter of how much. The how, when and from whom are just as important.”
If your investors don’t understand your vision and their involvement isn’t for the good of the business then it’s simply a non starter. You need to be in total agreement from the very beginning on which direction the business should go.
On growth
As your business grows and you take on more staff, one might assume that efficiency within the office will increase and the workload lightens. However, this is not always the case. Adil Abrar, Founder of Mastered, stressed that “as your company gets bigger, it only gets harder.”
The sheer abundance of software & accessibility to information means “it’s never been easier or cheaper to start a company. However, as a result, it’s never been harder to grow a company” as the market becomes so saturated.
On change
The challenges any startup faces in getting to launch are numerous but once launched, change is the only constant.
Businesses that pivot in response to new learnings are those that succeed. Once launched and real data is available, choices must be reevaluated constantly.
Rob highlighted this and described “the change in the investment conversation between pre-launch and post-launch is quite stark — the sell moves from emotional to rational, the business value moves from hope value to real value and the questions around business strategy change from “How might…? to “Why did…?”
Katy noted “An important thing to be mindful of is business evolution… don’t become too fixed on what you set out to do. Have a plan, but be flexible to allow your plans and goals to change — that’s when the magic starts to happen.”
As a result of allowing your business to naturally progress, many find themselves on paths they didn’t predict and yet may be equally happy to take.
On belief
The most notable (and somewhat idealistic) piece of advice from the evening was that to stand the best chance at success with a new business, you need to have inexhaustible passion invested into your idea and believe that your company will succeed because simply, there is no other alternative.
Adil stressed how important it is to “Build a company you wouldn’t want to sell to deliver a service that you would want for yourself.”
If your only motivation stems from a desire for a paycheque, you’re in it for the wrong reasons. If you truly care, that will resonate with your investors and things will come easier to you and your business.
Understand your future market, predict what your losses might be and prepare to be surprised. Test your idea, know your customer, try & try again. Ultimately, people buy into people, their passion and their integrity. If you show you have this then you’re already ahead.
Our next event in the series will be the PropTech Startup Session on the 14th September. Register for your free ticket here.
If you would be interested in speaking on the night then please get in touch at hello@thisissoon.com
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