At Accounting Professionals, we see lots of successful start-up ideas but on average, for every 10 new ideas, only one makes a good business.
“Most start-ups believe their secret sauce is their new business idea,” says Garry Pinch, AP’s Director of Business Advisory. “This has not been my experience. For me, it is all about the qualities of the founders and their team.”
Key qualities of successful Founders?
1. A Founder must be resilient and persistent
- Founders need to expect resistance and often from the most unexpected sources.
- Founders are often dumbfounded when potential customers critique their product or idea, even when it is better, cheaper and more efficient than their current solution. But, people often resist change.
- Successful businesses are not generally born from unique ideas, but from Founders that have the ability to overcome obstacles that have defeated others. The obstacles can stem from a range of technical, legislative, social or financial impediments.
2. Founders must be good story tellers
- Potential customers, investors, mentors and supporters can be the greatest critics, but at the same time, they also want to believe the Founder is the next big success story and they have played a role in finding them.
So how do founders manage this paradox?
“Their pitch must tell a story about them, their idea and their passion for outcomes of their business, how it creates value, how it improves lives, how it saves lives, how it saves the world,” Pinch explains.
3. Founders need to get comfortable with failure and learn from their mistakes
- Almost without exception, every start-up business will pivot from their original idea to discover a successful business. It is tough to accept potential customers don’t want to buy your great new idea but see value in part of your idea, a spin-out from your initial idea or the founder’s skill & knowledge.
- Successful founders listen to customers and pivot to focus on delivering where customers see the value or find new customer segments that value their product or services.
The journey of a start-up is often made up of 10 steps sideways or back and one giant leap forward.
Unfortunately, to discover the leaps forward start-ups will endure 10 misadventures first, but the prize of founding a successful start-up is worth it.
If you would like to discuss your business start-up contact us for a confidential discussion.