Who is a perfect founder? Perhaps this is a person who always makes the right financial decisions. Or an effective leader, who can motivate his team and help it achieve the desired results? We propose to consider three key points of the perfect founder.
1. PERFECT FOUNDER HIRE AN AMAZING TALENTS
Whether it’s a difficult thing or transformative for your business, hiring amazing talent will benefit you in so many ways. The benefits are worth the time and effort spent on finding that perfect match.
Hiring is not the time to take your foot off of the gas. You need people who can do basic tasks, but even more importantly you want experienced professionals in order for things go smoothly and quickly – so don’t stop looking.
The CEO needs to realize that if they spend their time inefficiently, it will cost them personally. What other people can do for the company and not only help with work but be cheaper than you?
The founder should start by allocating one whole month for hiring. This may seem like a long time frame, but it will give you the people needed and positively effect on your company.
Founders sometimes worry that hiring someone more talented than them will make them look worse. However, this is not the case as your company’s success depends on surround yourself with smart individuals and their skills can only help you in achieving greater heights.
Hire the best people for your company. Whether you’re looking for a new team member or considering bringing on an outside expert, it is essential that the person selected has not only technical skills but also cultural awareness. This means being able to work within your company’s hierarchy and meeting expectations of different generations while still staying true their own personal values – all things which are crucial when managing employee retention rates.
It is of utmost importance to find your key leaders first. They will be the backbone and foundation for any successful team you assemble, so it’s best not only do I sit on early hiring loops but also offer resources as well as answers when needed.
The best thing you can do for your business is find experienced lieutenants who are willing to take on new responsibilities. Junior members of staff might be able handle things temporarily, but it’s better if there is someone more senior available when needed.
2. PERFECT FOUNDER MANAGES FINANCES WISELY
It’s absolutely critical to form a strong cash management plan after each round closes. The last thing you want is sitting down and charting out how spends that money over the next months, but it needs be done.
When it comes time for your business’s finances, consider putting a venture debt line in place. This will give you peace of mind knowing there is an option available should the need arise and also save on interest costs with this low-interest rate.
Entrepreneurs often include the debt line in their runway calculations. This is asking for trouble because you want to have some kind of emergency fund, but it’s not possible when your plan doesn’t take into account what will happen if there are unexpected expenses or revenue decreases. The best way is optimism without blindness.
Your cash management plan should be fully accountable to your investors and advisors. You can’t underestimate the importance of sharing this with them – it’s imperative that they are invested in how you handle their money, as well.
When entrepreneurs raise follow-on financing, they should be dilution sensitive and aware that as the company grows more people will own a smaller percentage of it. This can lead to bad behavior if not handled correctly by founders who are eager for growth at all costs without considering how this may affect other stakeholders in their business like employees or investors after an initial round has been completed.
This is why startups always run out of money before they can raise another cent. They assume that if their fundraiser goes until six months before the end, he’ll leave with more than what was originally offered- but this strategy only translates into short runway times for companies looking to get off its feet quickly and deliver on promises made during initial campaigns.
When you find a prospective investor before they invest, your chances of getting the valuation and conditions those are right for them increases significantly. You may even be able to secure more money than what was originally planned if it’s handed over now instead later on in an agreed upon timeframe.
The process of fundraising can take a lot of time, but there are ways to make it easier. If you’re looking for investors and want them on board as soon as possible – then don’t hesitate.
3. PERFECT FOUNDER BELIEVE IN A NORTH STAR
Founder’s need a North Star. Something that will give them the energy and ability to convince investors, hire people – make it all happen.
None of the founders got to their stated destination in their second or third year. They simply knew where they wanted to go, and found the people who were ready to go with them.
The best startup leaders communicate with their entire company, not just the top tier. There are a variety of ways to do this including all-hands meetings, one on ones and stand ups. Regardless if you’re having an informal chat or addressing issues during assembly line production time – every single conversation should revolve around what is important for your North Star in order keep everyone aligned towards achieving goals together.
When the week starts, it can be easy to forget what everyone is working toward. Taking inventory on where you stand helps remind your team members why they’re coming together each day and how far they have come and which challenges still await ahead.
The North Stars at Microsoft have been an example of what can happen when you focus on your goals. They’re also important because it’s crucial not just to follow them, but always make sure they stay out in front so we know where our priorities lie.
Once you find yourself getting close to your goal – don’t get blinded by the vision. You need to figure out what next great journey will take priority that could lead somewhere entirely new.