(Editor’s note: Patrick Driessen is the CEO of Seed Accelerator, an Asian-Pacific technology startup & business accelerator. He submitted this story to VentureBeat.)
Having spent more than 20 years as an entrepreneur, I’ve seen a lot of theories, philosophies and truisms come and go. Success in the startup world starts long before your company is underway, though. It begins when you’re making the decision on whether the entrepreneurial life is for you.
Last week, I ran down 8 questions people making the leap should ask themselves. Today, I have seven more…
Can you create enough sources of funding? – Startups cost money – and odds are you don’t have enough in your bank account. You may not need a lot of cash on day one, but you need to start planning for it from the outset. In some cases, trustworthy friends and/or family members might be willing to lend you money or take an equity stake in your business. But if not, you’ll need to get access to angel investors and actively build a relationship with them or personally get to know the loan and/or branch manager at your bank.
Other options (perhaps less likely) include arranging an introduction to an outstanding venture capitalist or building up a relationship with clients that are willing to fund some of growth without requiring an equity stake.
Are you a people leader? - Once you start growing, you’ll need a team. To build one, you’ll need to be able to select, hire, retain and utilize the best people. It helps to have experience, but it’s not essential. And keep in mind that even rusty leadership skills can be improved.
Can you deal with failure? - Not every startup succeeds. And even those that do sometimes face many difficult and unexpected challenges. To survive this, you must learn to accept and overcome failure, forgive others and believe in yourself and your business.
Can you evolve? - As the founder of a fast growing business you will have to be multi-functional. While growing your business you will need to develop new skills and strengthen existing ones. If you’re the proverbial old dog who won’t learn new tricks, you’re not going to make it.
What’s your exit strategy? - You’re responsible for your business from start to finish - so where is the finish line? When and how do you want to exit your company? Do you want to sell it? Merge? Go public? Hand it over to your children?
It’s hard to see the end of the path when you’re just getting started – and this may be one of those issues you’ll have to pivot on, but by thinking about how you’d like things to end, it gives you a purpose and motivation. And it could help as you set plans for your company’s future.
What's your company worth? -A successful entrepreneur knows the value of his or her company at any point in time. He or she also knows what kind of unique value he or she wants to create, which is often based on their exit strategy.
Knowing your company’s worth (and having an ideal exit strategy) will help determine if the time is right when you have an opportunity presents itself. If you know there’s still growth potential to create more unique value, it could affect your decision.
Who’s your coach and mentor? – The startup path is a long, often lonely, one. Many successful leaders have a coach and mentor to help them along the way. They not only help increase your performance, they can offer sage advice that can enhance your quality of life.