I thought for a moment and then said “focus”.

My point was, that although there are many elements to any successful business (start up or otherwise), in the “chaos” that often typifies an early stage business, the ability to focus on the right things is key.

Following the meeting I got to thinking about the question in a wider sense and decided to set out what I feel makes for a successful start up and how to I try to spot them.

Over the past 15 years I have been involved in several start ups and emerging companies; in a hands-on capacity, as an advisor and as an investor – some have been successful and others less so….but why?

I believe success has 3 key components:
A. Core – the “right” product/service and business model
B. Talent – with the “right” skills and attitude
C. Support – access to services, skills and methodologies.

In short – a perfect scenario would be a great idea/model with passionate and skilled people who are open to input and support.

Although this sounds “idealistic” I have seen it happen a number of times and it’s great fun to be involved. The reverse of this is the frustration of having a strong “core” but failing to see (refusing to accept) what is needed to succeed, focusing on the wrong things and then missing the opportunity!

To expand a little further

A. The Core
When I look at an opportunity I always start with the “core” questions – is there a demand for what being proposed and does the business model stack

1. Product/service - clearly demonstrated customer need (critical is nice!); total focus on the customer needs; don’t “over engineer”; move to actual users/customers as soon as possible – if not sooner!; flexible to change if demand exists
2. Business model - knowing the cost of development and incremental delivery/roll out – particularly in non software situations; understanding the real cost of acquisition; demand at a price that stacks up against these cost elements; realistic and sustainable market channels; potential for significant growth

It’s worth saying that often if (1) is “workable” then I am more than willing to help defining (2) further – something that’s vital for expanded/second round funding.

B. Talent – the “right” people
To me this is reasonably straightforward and is all about leadership. I have always found that people in successful start ups:

• Believe it’s a mission – not a career
• Focus on things they can do now -  not just the dream
• Are obsessed with customers - and what they want/need
• Are driven by excellence
• Communicate – good and bad news
• Contribute – with clear roles for everyone
• Work with integrity and respect
• Do stuff
• Enjoy it
• Know their limits - and actively seek help to fill the gaps

C. Support
I group these areas together because, although they are all critical, I classify them (although not all agree!) as “commodities” which can be out-sourced or supplemented by external resources.

• Finance – from bookkeeping through to access to strategic guidance (CFO level) – separate skills!
• Funding - from initial seed through to identifying sources for later rounds and securing
• Grants – identifying, securing and complying with the terms
• Marketing – full range of services from supporting the business growth and sales through to investor work
• Legal – from business terms and employee contracts to structure/equity and IP
• Environment - having a location/”environment” where people want to be and work – this is often overlooked and is not just about spending money

Every start up has a different collection of internal skills; however when certain skills are lacking, it is VITAL to identify this and react accordingly. A further complication for many start ups is that although they need a wide range of skills and access at different levels of seniority, they don’t need them full time. The reaction from some is to try to handle everything internally which not only causes a loss of focus, BUT can also result in dire consequences. I recently experienced a situation where, over a 6 month period, the core team met regularly and frequently with their investors, completed numerous grant reports and make hundreds of product changes (they even moved offices!) – but NEVER met with a customer or secured revenue!…..you can guess the outcome!

This is why I strongly believe that the support of an incubator can put these critical pieces in place without losing focus on (or taking resources from) the core opportunity. An incubator can provide access to advisors and support services that make the difference between success and failure, between achievement and frustration.

So these are my thoughts  on what makes a successful start up!

What have I missed? What do you think makes the difference?

I really enjoy his direct and thought provoking approach and whilst I don’t always agree I always enjoy reading.

As a fan of new ideas on leadership and technology this was an interesting and enjoyable read. It tackles how the leadership landscape is changing with help from emerging technologies and how Seth believes everyone now has the opportunity to lead by creating their own Tribe!

“All that’s missing is you, and your vision and your passion,” he shouts.

His name for this new type of leader is a “heretic.” …. “Heretics are engaged, passionate, and more powerful and happier than everyone else,” he explains. He has a great take on making sure you are doing what you enjoy – something about which I feel passionately.

Like all of Seth’s books, this is not a long thesis style justification; it’s a short and punchy “pitch” and all the better for it. I am sure you will end up reading it in one sitting and I challenge you not to feel inspired to do something!

Let me know what you think

Too often I see the extremes: on the one hand, cut-throat operations that have little care for those who don’t put in 15+ hours work a day or dare to have a home life, whilst on the other hand, the so called “caring” employers who simply remove any form of monitoring or accountability, allowing people too often to do as they please.

For some reason, “softly softly” organisations appear to feel that avoiding issues of non-performance or lack of commitment is acceptable and even appreciated by staff! On the flip side, I see people sidelined, left behind and eventually pushed out for lacking the so called “right attitude”.

In both cases, the so called “leaders” are only fooling themselves.

We spend the majority of our adult life in organisations and I feel we should start off with some facts as I see them:

• Enjoyment - people would rather enjoy coming to work than dread it
• Entrepreneur – I believe everyone has it in them to contribute, to add something and everyone starts off wanting to do so
• Expectation – people deserve to know what is expected of them and how they fit in
• Every role – if their role does not contribute to the organisation, then it’s better to question why and deal with it
• Everyone - if you have a workforce of 64 people, then 64 people should be involved, consulted and rewarded
• Excellence – if you don’t want to strive to do an excellent job in everything you do, then go and do something else!
• Explain – people must be told what is happening – good and bad – with the organisation and their contribution
• Educate – always invest in helping people improve their skills and contribution

I believe the right way is to create an environment where everyone buys into the “Cause”, where you continually strive for excellence, where everyone has a part to play and knows what it is, where everyone is helped to develop themselves – maybe even enjoy doing it!

Surely it’s better than the alternative?

From the numerous things he said I added my own interpretation and came up with a short list of MUST HAVES for success:

• The “Cause” - the organisation (department or team) to understand and believe in
• The Location - somewhere people want to come to with the space to do things
• The People (right) – realise you are not Tiger Woods – you need others to do that stuff
• Plan – short term detail/longer term concept – get the balance right
• Do stuff - “FIRE” – quick wins and keep moving
• Learn/change/adapt - do more stuff
• Consult everyone - a team of 60 is a TEAM of 60 – always!
• Decency - give respect, grace, integrity
• Communicate – personal!
• Persevere
• Support - at every stage – financial/administration …..

All sounds so simple!

www.tompeters.com

….he also said…..

A Leader…..MUST be determined to create a legacy of earthshaking transformation in their domain create/must necessarily create organizations which are …no less than Cathedrals in which the full and awesome power of the Imagination and Spirit and native Entrepreneurial flair of diverse individuals is unleashed … In passionate pursuit of jointly perceived soaring purpose and personal and community and client service Excellence.

Think!

1. Movement - in all you do/say/act, think about how you move and the message it sends

2. Focus - future/positive things – ALWAYS

3. Language - use questions; choose positive words

You set the tone

“You must be the change you wish to see in the world.”

Gandhi

Swim with the Sharks Without Being Eaten Alive – Harvey Mackay

Almost 20 years since I first read it, but I still stopped, sat down and spent a couple of hours enthralled by it…

Hundreds of thoughts and observations including:

• You’ll always get the good news; it’s how quickly you get the bad news that counts
• Little things don’t mean a lot; they mean everything
• Treat your people the way you treat your customers
• There is no future in saying it can’t be done

More information…Amazon >>

They can’t be bothered to pay attention when speaking to you?

You know the kind of people I mean….

You are speaking with them or in a meeting and they can’t stop reading their email, taking a phone call or generally trying to show how important and popular they are.

In my experience, the truly important (and memorable) people allow time to speak, make you the focus of the time they are spending – show YOU some respect.

The others are too busy feeling insecure and worried they might miss something…..

Just think about it next time…

Joseph “Yossi” Vardi has helped more than 40 startups see the light of day and he’s a strategic advisor to Amazon and AOL.

He has an absurd sense of humor and a refreshing set of values

TED | Speakers | Yossi Vardi.