It’s a new year, and like every January, people are buzzing about all the new endeavors they’ll start during the next twelve months. For a lot of people, that means finally setting up the startup company they’ve been dreaming about for a long time. I know from experience that there are many aspects of a startup that can only be learned through trial and error. This chart shows 13 basic principles that are required in order to be successful at your startup.
According to Wikipedia:
A startup company or startup is a company, a partnership or temporary organization designed to search for a repeatable and scalable business model. These companies, generally newly created, are in a phase of development and research for markets.
When people think about startups, they might think of a new tech company, or they might define a startup based on how funding is raised. However, according to the Wikipedia definition, I could argue that even a new blog from which the owners are trying to create a cash flow is a startup.
Regardless of how you define a startup, the general principles of success are very similar to those of a traditional company. This chart created by Anna Vital at Funders and Founders is based on a 2009 article by Paul Graham entitled Startups in 13 Sentences.
I can agree with all of these points, and this list is a good reminder for anyone who is contemplating becoming an entrepreneur. In my opinion, choosing good co-founders is most important. Being in business with another person (or multiple people) is like being married to them. And if that partnership dissolves for some reason, it can cripple those individuals emotionally and financially, similarly to a divorce. Pick good co-founders.
In case you don’t know what “get ramen profitable” means (it’s listed in the chart below), I’ll explain it using Paul Graham’s words. In his article linked above, he describes it this way:
“Ramen profitable” means a startup makes just enough to pay the founders’ living expenses. It’s not rapid prototyping for business models (though it can be), but more a way of hacking the investment process. Once you cross over into ramen profitable, it completely changes your relationship with investors. It’s also great for morale.
I also found an interesting resource regarding startup success on Flickr. It’s a whiteboard chart from the Lean Startup Summer Bootcamp: On Pivots and Pitches (2013). You can click over here on Dean Meyers’ page to view that one.
If you’ve been successful at a startup, we’d love to know your advice and tips for how to navigate the road bumps. Please share your comments below.