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Resources

Starting a Company

Starting a company requires more than just a great idea. As one of our most successful CEOs says, “A good idea is 2% of a great company.” Here are some things to keep in mind as you launch your venture.

Analyze the market

  • Understand the market, competitive landscape and why you’ll be successful before investing significant time or money.
  • Are you doing something fundamentally different that has the ability to disrupt a large industry or, better yet, change the world? If not, think twice. Incrementalists have a difficult time raising money from venture capitalists.
  • It’s never too early to involve customers in the design and validation of your solution—talk to at least 10 to 15 prospective customers to get their thoughts on your concept.

Assemble your team

  • Know your weaknesses and surround yourself with talented people whose skills complement your own.
  • Pick your partners carefully. Are these people to whom you would write a check and entrust a significant amount of your net worth? Personality fit is necessary but not sufficient – hire for competency and attitude.
  • Put together a board of advisors, even if it is informal.
  • Invest in good professional advisors (legal, accounting, tax) sooner rather than later.

Know yourself

  • Decide early what kind of business you’d like to build (quick cash-flowing, high-growth, etc.).
  • Start something you’re passionate about—you’re going to spend a lot of time on it!
  • Bootstrap for as long as possible while not sub-optimizing the opportunity.