8 rules for start-up success

You’re ready to take the leap and start up your new
business. But how do you make sure it will be a
success? With thousands of new businesses failing
each year, starting out on your own can be a risky
step, so it makes sense to do as much research and
get the best advice you can.
Start-up accelerator MassChallenge UK, which
launched here in February after much success in the
US, helps start-up businesses by connecting them
with mentors and investors. The four-month
programme is open for applications until 1st April
and £500,000 in prize money is up for grabs for the
lucky winners.
Here are some great tips from the accelerator’s
alumni entrepreneurs, supporters and sponsors to
help you ensure you get the best start you need as an
entrepreneur.
1. Get on with it!
Starting a new venture is a nerve-wracking business
and it can be tempting to keep telling yourself that it’s
just not the right time yet. Maybe all the stars will
truly align for you next year, but if you're serious
abuot starting your own business, it's better just to
grasp the nettle and get on with it.
“There’s never a 'perfect' time to start your business
or build your product,” said Linda Henry, managing
director of the Boston Globe, film and TV producer,
and director of youth engagement at Liverpool FC.
“The best time to start is today, the next best was
yesterday but the worst time is tomorrow. If you wait
for the perfect storm of circumstances you’ll never
even start, so just go out and do the best you can
right now.”
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2. Find your niche
Deciding who to design your products for can be a
daunting task, but it’s better to have a niche group of
keen customers than to spread yourself too thinly.
“You can’t please everyone,” said John Harthorne,
MassChallenge founder and CEO. “If you try to make
a product that makes everybody happy, more often
than not you end up making nobody happy. A small
group of very dedicated users is far better than a
large group of indifferent users. ”
3. Understand the market
You may be convinced you have the world’s greatest
product but do you understand your market?
“You're either starting with a market looking for a
solution, or a solution looking for a market,”
explained Ted Acworth, founder of Artaic and a
MassChallenge winner in 2011. “If you're a
technology entrepreneur like me, you probably have
a solution looking for a market.
“While this can lead to a disruptive or revolutionary
breakthrough, you may run the risk of wandering in
the wilderness trying to find a customer niche,
learning the market's inner dynamics, and developing
a functional go-to-market organisation that generates
sales... all while burning valuable start-up time and
cash.
“Find a co-founder who understands the market as
well as you understand the technology.”
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4. Accept every meeting that comes your way
When you’re starting out in business, it’s a good idea
to embrace every meeting you’re offered. Make sure
you chase down every lead that comes your way,
says Adam Carrigan, chief operating officer at Real
Life Analytics.
“When you are a young company you need to chase
every lead, and meet with everyone who will meet
with you," he said. "You never know where it might
get you."
5. Consider bringing on board angel investors
Angel investors are experienced business people
who, as well as injecting finance into your company,
can providing mentoring help. It’s worth deciding
whether having one by your side as you launch your
business could make all the difference, says Jenny
Tooth, chief executive of the UK Business Angels
Association.
“Angel investors bring not only much needed early
stage finance, but also business skills and contacts
that can be very valuable to helping businesses
successfully grow and scale-up, generally offering
between £50k and £500k first round,” she said.
“Angels are looking for competent and passionate
entrepreneurs that can offer new disruptive products
and services in the market and the potential to scale
and bring a ten times return.”
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6. Decide whose advice is worth listening to... and
ignore everyone else
Everyone and their dog will happily tell you how to
run your business but one of the most difficult things
is deciding whose advice is worth taking, says Minhaj
Chowdhury, founder of Drinkwell and winner of
MassChallenge’s 2014 $100,000 prize.
“From your co-founder to your mother, everyone will
have an opinion on how you are running your
business,” he said. “Ultimately though, it is up to you
to decide who to listen to when making a certain
decision.
“Knowing who to listen to when you’re in a specific
bind is the hardest part of entrepreneurship, so be
mindful of what decision point you bring up to a
certain person.”
7. Fail as quickly and cheaply as you can
Failure is a sad fact of business life. Products and
services don’t always work, but when things go wrong
it’s better to accept that they have failed and move on
rather than keep banging your head against a brick
wall, says Jeremy Basset, global marketing strategy
director at Unilever.
“If your product is going to fail, it’s going to fail,” he
said. “The best thing you can possibly do is to fail as
quickly, and as cheaply, as possible so you can get
building on the right path.
“Too often people grind and grind and grind,
spending tens of thousands or hundreds of
thousands of pounds even to get traction when what
they should really be doing is going back to the
drawing board completely. It’s ok to pivot and start
again.”
['I turned my Star Wars obsession into a multi-million
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8. Don’t just take the money and run
If you’re considering exiting your company, it can be
tempting to sell out to the first buyer who comes
along. But take your time and don’t take less than
your venture is worth, says Leonide Saad, founder of
Alkeus Pharmaceuticals and MassChallenge’s 2012,
$100K Diamond Winner.
"Never undersell your company. Resist the
temptation of "fast" money. There's no such thing.
Instead, slow down a bit and pick wisely a small set
of smart investors who value your business just as
much as you value yours."
FINANCE
8 rules for start-up success
Yahoo Finance UK Tuesday, 24February 2015