Image by Dylan Nolte on Unsplash
Over the years, the Nightingale team has worked with founders from a huge variety of backgrounds - graduates who’ve generated a great idea from their final year project, serial entrepreneurs who are onto their third or fourth business, established professionals who have identified a gap in their industry, people who’ve had success in one area and would like to expand into a new market. No matter where they’re starting, all founders have to make the decision to take the leap and put their time, effort and money into building a business, without any guarantee of success. That leap can seem huge and daunting and it can be difficult to get an unvarnished picture of the realities and practicalities of what you’re leaping into.
From my experience of the common issues that founders grapple with, I’ve put together some things to consider before you jump into the startup world.
Be aware of the cost - both in time and money
You can’t predict when (or if) your startup will begin making money. Even successful startups can take time to get established - challenger bank Monzo took eight years to reach profitability. Some founders are lucky enough to have substantial savings, while others secure funding early on, but most need to continue in employment for a time before they can dedicate themselves to their business. Balancing work and building a business is time consuming and can involve working late, giving up weekends and holidays and sacrificing your social life. The boundary between work and the rest of your life can become entirely non-existent as you deal with the many details that building something new involves. This isn’t necessarily a bad thing - it can be energising to work on something you really believe in (see point 2!) but it’s worth considering the impact on your life as a whole and the potential long-term effects of that.
Make sure you care about your sector
The myth is that good founders are ‘passionate’ about the industries they work in. Some are, but I’ve also seen plenty of founders get into particular sectors because they think there’s money to be made. In my view ‘passion’ isn’t vital, but you should at least have a strong interest in the area you’ve chosen, given that you’re likely to spend a lot of time thinking, talking and worrying about it. Founders who don’t really care about the sector they’re in tend not to dig into the important details and instead focus on the quickest way to make the most money. This approach sometimes works, but in a world with a lot more misses than hits, you’re much more likely to be successful if you can get to know your market and your problem in minute detail. You should be able to spend whole days reading about the sector you’re working in - if you find that dull, then it’s likely you’re going to struggle to stay motivated. Work on something that can keep your interest, day in and day out. With any luck you’re likely to become an expert in it.
Think about what ‘success’ means to you
Fear of failure can be a huge barrier for startups, making founders overly cautious and unwilling to take steps forward. However, fear of success can be just as big a problem, in my experience. A growing business means a growing team, more complexity and more risk. As a company grows, founders can find themselves moving away from doing what they enjoy towards more managerial and administrative tasks - dealing with hiring and firing, sorting out blocked toilets, grievance policies and tax bills. Think about where you want to be in five years’ time - do you see yourself managing a team of sixty? Will you be happy discussing contracts, terms and conditions, management policies? I regularly remind founders that they are not required to build a multi-million pound business - small but profitable businesses can be just as satisfying to run. If you do want to go big, but you don’t want to get into management, think about who you will have to hire to make your business work. The founder doesn’t have to be the CEO.
Consider getting a co-founder
Great employees make running a startup easier. But even great employees will typically see what they do as ‘just a job’ - they won’t care about the business the way you do and they won’t necessarily go above and beyond to make it a success. A great co-founder, on the other hand, will be motivated to act as a sort of co-parent, someone who will help to plan for the future and deal with the 3am crises. It’s not easy to find a co-founder - it has to be someone you trust, who you know will be invested in the business as much as you are. The last thing you want is to be resentfully dealing with every issue while your co-founder is nowhere to be seen. Founders Factory has some good advice on what to think about when finding a co-founder.
Do your research
Given I run a design research consultancy, I had to include this one. Before you put any time or money into developing a product or service, do some thorough research into the market, potential competitors, technical constraints - anything that could affect your success. Read articles and blogs online, talk to experts, interview friends and family. Carry out as much research as you can with your potential customers. Take your idea to bits and look at every aspect of it. What are the potential barriers to making it work? How will your business make money? Our free resources and tools can help you to ask the right questions to understand if your idea has legs. Your research might reveal some serious blockers, but you’re far better off knowing about those before you waste any time or money.
