Most entrepreneurs start their business full of energy, but some soon find themselves deflated by the realities.
In the spirit of helping you prepare and respond positively, here is a list of the most common new venture founder unexpected realities, with some thoughts on how to mitigate each one:
1. The business seems to be driving you, rather than you driving it.
Learn early how to focus on the things you can do, surround yourself with help rather than helpers, learn to say "no" often, and keep some balance between your business and the other elements of your life.
The startup world is all about causing change and reacting to unknowns, so set your expectations early to deal with it.
2. Managing cash is an overwhelming burden, in good times and bad.
Be more realistic in your projections on both ends, for example, always asking for enough to cover the next 12-month runway, plus a 6-month buffer for your next milestone to include contingencies and time for the next fundraising.
3. One or more key players need extra attention or replacement.
Don't take the "shortcut" of not doing your due diligence on aspiring team members, strategic partners, investors, or vendors. Cheaper in the beginning can be more costly in the long run.
4. Endless pivots are required to keep up with market changes.
No matter how certain you are that your solution, target market, and customer need are well-proven, you are likely wrong, or the world changes by events you could not have anticipated. Thus you need to reduce the extra pain by having a Plan B, and a process for rapid change.
5. Getting to the next level of growth is a constant challenge.
The key here is to plan ahead, nurture a relationship with your favorite venture capitalists, and leverage the growth and assets you already have with other lending and funding organizations. Of course this means taking some smart risks, not resting on your laurels, and continuously updating your business plan and strategy.
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op by Joy Chiang, Alumni Community Manager of AppWorks
