3 Things to Consider when Embarking on your Startup Journey

Starting a business is an exhilarating journey but it is a seldom a straight forward road, whether it be speed bumps with customers or the gorgeous views when you get the sales in, probably the startup equivilant of the North Coast 500. But one of the things I’ve found when talking to founders in those early stages is that they haven’t always checked the settings on the satnav… believe me it’s an issue I’ve had before and added severaL HOURS onto my journey because the satnav was set to avoid toll roads. So here are a three key points I’d always suggest founders check as they embark on their journey:

1. Key Metrics for Judging Your Journey Progress

To ensure your startup is on the right path, it’s essential to identify and monitor key performance indicators (KPIs) from the beginning, are you trying to get their as fast or as efficently as possible? The metrics you want to use for success will vary depending on your industry and business model, but common ones include your customer acquisition cost (CAC), the lifetime value of a customer (LTV), your churn rate, but probably most commonly monthly recurring revenue (MRR). By setting clear, measurable goals for which ever metrics you want to use, you can gauge your progress and make informed decisions to drive growth.

2. Have the Right Tools to Help Your Journey

Investing in the right tools and systems early on can save your startup time and money as it grows. Choose platforms and software that can handle increased demand without requiring a complete overhaul, because lets face it, the point at which you need to scale, if your tools don’t scale, it’s going to be a huge headache to migrate across.

For example, you might have your sales tracked in a spreadsheet, which is fine(ish) for just you, but if you ever hire more staff a spreadsheet doesn’t scale. So by using a cloud-based customer relationship management (CRM) systems you’ll be in a position to scale quickly. Other examples are scalable e-commerce platforms or robust project management tools that can support your business as it expands.

That being said you need to keep an eye on costs, so again look for tools where the pricing scales. JIRA is a good example of this which is free for up to 10 users but is widely regarded as the default project management software for teams worldwide. Using this approach not only ensures smooth operations with a mind on costs but also prevents disruptions that can occur when transitioning to new systems.

3. Get the Right People in the Car with You

On the above, as your startup grows, your role as a founder will evolve. Initially, you may wear many hats, but as the business scales, it’s crucial to delegate responsibilities to specialists. Think strategically about the team you’ll need and when to bring them on board. A wise man once told me that you need to do som serious self reflection and acknowledge what you’re good at, bad at and what you don’t enjoy, then hire to fill those gaps, and then rinse and repeat adding the skills you need to give you a well rounded and balanced team.

Additionally, consider your role at each stage of growth. Will you focus on strategy, product development, or operations? You will always be the founder, but that doesn’t mean you need to run the company if that’s not where your skills lie. Understanding this early helps in building a complementary team and ensures you can step back from day-to-day tasks to focus on the bigger picture and what you’re good at.

Conclusion

When you’re at the start of your journey as a founder there are an awful lot of things to get sorted… believe me I know!! Developing a clear plan for scalable and sustainable growth is vital for any startup to try and give you your roadmap to success. By setting and tracking your key metrics (whatever they are), investing in scalable tools early, and strategically building your team at the right time, you can navigate the challenges of growth without losing sight of your goals and give you the best chance for success.