There are many reasons behind startup failure. Some of them are mistakes in team-building, unfit product-market fit, and inability to execute ideas. To avoid these mistakes, The Greater Hub invited Michael Tampi, a private investor and Co-founder of parentalk. id, to the Greater Hub XII Expert Mentoring session on Friday (25/2/2022).
According to Michael, startup founders need to have four essential things. First is the right team. Michael believes that the team is more crucial than the startup’s product. “Everyone can come up with an idea, but failing to build the right team is number three in the top twenty reasons for a startup to fail. It is important and must be a priority. Make sure that as startup founders, we have the drive to build the right team,” said Michael.
Michael recommended several tips for founders to build the right team. First is assessing the strength and letting competent people handle things beyond the founder’s ability. Also, make sure to recruit action-takers, i.e., executors who can get the job done, in addition to being creative and innovative. Then, avoid building a homogeneous team because it can hinder the development of startups due to the shared identity that rarely generates new ideas. Finally, create a corporate culture that can attract talent into the team because the top candidates consider not only monetary benefits but also value.
Meanwhile, there are three other things shaping the “DNA” of a founder: focusing on execution, being customer-driven, and being hardworking. “Doesn’t matter if the ideas are simple, as long as you focus on execution. There are many cases where startup founders’ ideas are too grand, thus inexecutable. In addition, always look for customer validation because the best product comes from customer insight. It is a waste if you spend money and energy on an unnecessary product. Avoid having a high ego and think that your idea is the greatest. Talk to your customer,” Michael suggested.
Michael also emphasized that an entrepreneur cannot work alone. There is no such thing as a solo entrepreneur. Many people think that Warren Buffet is on his own, but Warren has a partner. He is even willing to wait a long time for his partner to accept his offer of cooperation.
Furthermore, he explained, the journey in building a startup is not a sprint but a marathon. To win the marathon, 90% is a strong mentality. How to make the right product, manage friction between founders, seek funding and get rejected, or sometimes have members leave the team. Get ready from now.