Not a day goes by without an idea for a new feature, a new product or a new opportunity for JumpIn – it’s what makes being involved in a start-up so exciting. We could take the business in so many alternate directions and our product could ultimately be shaped very differently. Yes it’s exciting but it’s also challenging. If we make the wrong strategic decision, it could cause the business to fail. So how can we learn to manage these opportunities and make the right choices?
Many people advise asking an outsider but for me this is often limited. Nobody knows the business better than you, the founder. A better choice is to search for some advisors. Experienced and successful entrepreneurs are often willing to help because they want to give something back and they may see an opportunity for themselves within your business in the future. Startups should leverage this more, educate advisors about the business and consult them to aid the decision making process. Our first mentor has now been appointed as our non-exec, which we’re thrilled about. He’s experienced and has the right level of interest in the business so that he’s not too biased but still understands our model.
Secondly, be rational and put things into context. People will promise you the world but how likely are they to deliver? There’s nothing wrong with thinking big but be rational. The same applies with your ability to deliver. For example, a large business may approach you with an exciting opportunity – if delivering on it is unrealistic, why risk your core business by concentrating resources on one opportunity? If you’re doing enough to impress a large business, you’re likely to be impressing a bunch more too so make sure the deal is right. Unless your business model needs to pivot, we’ve got to be careful in making a decision that diverts from our wider vision. There are so many opportunities that risk losing focus from your core proposition. If you spread yourself too thinly, you run the risk of failure.
Fundamentally, once you’ve consulted your advisors, completed the due diligence work and positioned the opportunity within the wider context of your business, only you as the founder will know whether to take it or not. It might sound pretty cliché but it’s key to follow your gut feeling at this stage. Even after doing all you can to rationalise your decision, there is of course a chance you make the wrong choice. This may be due to a change in circumstances or poor analysis but at least you’ve given yourself the best chance of making the right decision at the time and you’ll never regret not following your gut feeling.
With so much uncertainty and so many key decisions to make as a startup, wrong decisions will unquestionably be made. After all, it’s a learning process for both the founders and the business. It’s about giving yourselves the best chance of choosing the correct opportunities for your business, learning when to say no and reacting quickly when things start to go belly up.
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