Things Every Founder Should Know
• 01 Mar 22
Being a founder of a company is no easy feat. From the outside looking in, being a founder of a company can somewhat seem like quite a glamorous title. However, that is very far from the truth. Founders are inundated with stress. And no matter what business it is they’ve started, many of them face the same issues. This article will highlight some of the things every founder should know.
Funding is not the target, money is
Getting funded should not be your end goal. Rather having money to operate your business, is. There are various ways in which a founder can get money to run their business and it doesn’t always have to be solely relied on funding. Think here of a business loan, or a re-mortgage on your property.
If you are able to, bootstrapping is an option that has an optimal effect on valuation. Most founders should seek to bootstrap their business when and if they can, whilst they are finding the ideal product-market fit.
Don’t run out of money
Speaking of money, founders don’t have the luxury of saying they’re broke. When it comes to any deals being closed, be mindful of where that money is going, filter as much of it back into the business as you can to continue growing.
Have a North Star
Defining your why is imperative to know what you are working toward. Having a north star- or a why- is what is going to make you and your team work toward that every single day.
Have great co-founders
You’re unstoppable when you have aligned great co-founders. You can’t do everything on your own. In most cases, many founders are a jack of all trades, however that is not sustainable. By having co-founders who believe in the business and afer willing to do what it takes to get it right and work hard at it, you’re setting yourself, and your business, up for success.
Know when to strike
Something not often spoken enough about it knowing when you should look for investors. An idea simply isn’t good enough. The ideal time to look for investor funding is when you have that ideal product-market fit. Investors aren’t interested in company traction, or the market you’re claiming to dominate. Make sure you don’t approach investors too early, have your product-market fit, understand your growth potential and go to them with the facts.
Do not pitch your product
Speaking of investors, when it comes to talking to them about your business, it’s quick to only focus on the product. However, if you’ve successfully found your product-market fit, investors want to know about your team and the market potential for growth.
As a founder, you’ll really start getting to know yourself on a whole other level. Your strengths, your weaknesses, your room for improvement. Make sure you are honing in on the opportunity to find yourself as a founder by talking to your peers, going to industry-related events. You’re going to want to constantly listen, learn and compare as you go to find the best solutions for your business.
Don’t be fooled by an angel
Sometimes, it can be easy to focus on the small, short term wins, However, Startup businesses need roots that are strong enough to hold it when things don’t go to plan. Starting off slow and steady is a much more resilient plan than skyrocketing through. Go back to your idea of the north star, what are your long term goals for your business and how are you going to make that happen, today?
Choose a VC with syndicates
When looking at venture capital, make sure you’re looking at a venture capital firm that teams up with international VCs. These firms tend to have more financial power, openings into other markets and practical knowledge at hand.These are aspects that will only benefit you and your Startup business as you plan to grow.
Know when to hire
Hiring staff is both the most difficult and the most transformative thing a founder will ever do for their business. People are what is going to take your ideas and your product from just that to an actual business with a successful minimal viable product. It’s a balance of knowing when you hire, vs who to hire when starting a company. Tread these waters lightly with as much knowledge and understanding of who you need and when.
When it comes to legal basics, it can seem overwhelming at first. But, it doesn’t have to be. GLS offers a host of free Startup resources to help set you on your way. You can also browse our list of over 200 Legal Templates and Tools, to choose the products your Startup needs at each critical stage of business.
We also offer a wide range of subscription based Legal Support Plans created specifically for Startups who want a 360 degree service in creating their own virtual legal dept.
*The above content does not constitute, nor is it offered as, legal advice of any kind. GLS Solutions Pte Ltd is not a law firm and any support provided pursuant to this entity is not regulated legal advice or legal opinion.