“Go out and raise money,” sounds like it’s some sort of easy, free flowing thing to do as a business founder. When we get into running a pre-seed or seed-stage startup, it’s a completely different animal when compared to a publicly traded company with hundreds or thousands of employees. At the earliest stages, CEOs face challenges that require them to wear many hats, excel at tasks beyond their comfort zone, and move with uncontrollably fast speeds. While product development is crucial, there are three areas where early-stage startups can’t afford to miss the mark…
At the core of every startup, or just any business, there’s a vision which resonates deeply with all stakeholders. Founders, employees, customers, and investors all need to buy into the mission and vision of the company. It’s what motivates people beyond yourself to work long hours, inspires belief in what can be achieved, and what aligns your team to work toward a common end goal. A compelling vision doesn’t just excite you and a few people; it serves as a “North Star” for decision-making and rallying momentum in those times where you want to give up. Early-stage CEOs have to articulate this vision with passion and clarity to build trust and excitement around their company’s future.
If you’re not selling the fundraise, you won’t survive the fundraise. Whether it’s pushing an investor to send the wire or just proving to them that the product is worth the investment. CEOs have to be relentless in their ability to sell. Fundraising specifically is a skill that makes or breaks a pre-seed or seed-stage startup. At this point, your company likely doesn’t have the revenue to self-sustain, or it does and you’re just stagnant. Securing capital is vital to extending your runway. CEOs need to make sure that their vision isn’t just communicated effectively but that it is also aligned with investor expectations, helping them raise the right amount of capital at the right time.
You can try to build your startup and take it to the next level – that’s fine. However, chances are that you don’t have all of the skills or all of the answers you need. This is where talent comes in, and for a startup, it’s a lifeline. The ability to identify, recruit, and retain all-stars on your team is a make-or-break factor. In the early stages of your startup, every single hire matters. You need people who can work with velocity, push themselves and the company forward, and adapt to the ever-changing demands of a startup environment.
Keep in mind that these people don’t treat the startup as “their baby” like the CEO will, so they need a leader who can get them committed to the vision – which plays very well with people who are highly skilled and self-driven. The challenge is pushing the team to perform their best without burning them out or creating friction, especially in a high-pressure, fast-moving environment.
Outside of everything, product matters and it’s very important, no question about it. But in the early stages, it’s less about perfecting the product and more about ensuring you’re solving a genuine problem for your target market. As the company grows, products will naturally take more focus, but without nailing three areas – the ones mentioned above – your product won’t even have the chance to shine.