Founding a company is hard. And as with any complex task, the risk of failure is high and procrastination is likely. Not surprisingly, many innovative ideas are never implemented. Founding is a difficult process that requires knowledge, intuition and a supportive network. Where does one start? Business plans must be written, target markets defined, MVPs built and go-to-market strategies developed. A Co-Founder with complementary strengths must be recruited, the perfect pitch deck created. And finally the daunting task of financing and finding the right investors. The list goes on. Yes, founding is hard.
Together with our Munich mentors we identified three easy first steps for launching a startup.
1. Verbalize and Share Your Idea | 10 min
Verbalizing and sharing are the building blocks for initial feedback. It starts with the simple act of articulating an idea that has so far only existed as an abstract thought - a powerful very first step towards developing an eloquent elevator pitch. From the beginning, the elevator pitch is the most valuable tool for any entrepreneur; especially at later stages. The business idea has to be clear, specific and easy to understand - Key points: what is the offering? Who is the target market? Which problem gets solved? Why is the idea so special? Often it takes active verbalization to uncover knowledge gaps and flaws in the concept. “If you can’t explain it simply, you don’t understand it well enough” said Albert Einstein. Once an idea is verbalized and shared, friends and family, assuming they are unbiased, as well as first potential users, can give initial feedback. It is important to remain open to constructive criticism and recognize it as a helpful resource for improvement. Fear someone steals your idea? An idea on its own has no value, only successful execution.
To-do: quickly verbalize your idea, share it, ask for initial feedback.
2. Visualize Your Success | 10 min
Most have heard about it, not many do it: visualizing. They miss out on a simple though powerful tool that can deliver immediate as well as long-term results. For top athletes like climber Alex Honnold who goes to physical and mental extremes, such techniques are essential for survival. Media mogul and entrepreneur Oprah Winfrey refers to herself as a “powerful visualizer and manifestor” advising “create the highest, grandest vision possible for your life, because you become what you believe.” The various methods like writing, vision boards or mental visualization all involve the brain's Reticular Activating System (RAS). Whatever we focus on, RAS filters every single input accordingly and decides which stimuli we recognize and which not; basically the subconscious programs us to have a heightened awareness to useful resources around us. RAS can help us detect important information, meet the right people and recognize the best opportunities which all lead to the specific goal we visualized prior. It is best to be as detailed as possible and engage all senses. How does your future work space look like? Your desk, the chair you sit in including the lighting, sound and smell? Who is your perfect Co-Founder? What is your ideal work-life balance? How does it feel to be successful and create something meaningful?
To-do: sit down, set your timer, close your yes and dream big.
3. Build Stable Relationships | 10 min
The right network in private life as well as professional life is key. Though social networks try to mislead us into thinking sheer quantity matters, the actual quality of relationships is far more relevant. Quality is based on honesty, authenticity and a genuine interest in the other - even if added value is not obvious. The mindset of “what can I do for you” in every meeting is always best. Silicon Valley is characterized by a Pay-Forward mentality which is besides capital, talent and technology one of the behavioral factors for innovation. Early-stage startups benefit from stable connections; a rule of thumb is to establish two to three new connections per week. “Business is all about personal contact” according to Richard Branson. Like-minded people can be a source of inspiration but also allies during tough times. Building relationships outside of the immediate ecosystem is equally as important, and gives often unexpected but relevant insight. Some more hands on advice: send out a short, precise request including why you want to meet. Make proactive suggestions regarding time and location but be flexibel. Research cafes and restaurants that are easy to reach and suitable for meetings. Arrive early, pick a quiet table, put your phone on silent, be yourself and wrap up after 45 minutes. Post meeting, write down important takeaways, connect via Linkedin and follow up with a Thank You.
To-do: reach out to two people via email or Linkedin and set up a meeting.
And what about everything else? The complex tasks of building a business plan, product development, pitch deck, financing and investment? A solution could be the Founder Institute. Founding a company will still be tough - but totally worth it!
This post was written by Claudia Schaller, PhD, Founder of InFutura (an innovation consultancy focused on ventures at the intersection of science, business and design), and Local Leader of the Founder Institute Munich.
The Founder Institute is the world’s premier pre-seed startup accelerator, with chapters across 200+ cities and Graduates that have built companies exceeding $20B in estimated value. In the Founder Institute, high-potential entrepreneurs and teams can get the critical support network and structured process needed to build an enduring company.
Learn more at FI.co/overview, or apply to build a startup in the Columbus Founder Institute today.
