I spent half day today with entrepreneurs trying to help them navigate some of the problems they are facing. The companies ranged from healthcare to market places to e-commerce. These were early-stage companies with revenues around USD 1m. As I was listening to the challenges, it was clear that one of the common mistakes founders make is not to build the properly documented processes early on. In the excitement of growth, there is a tendency to ignore the boring job of building robust processes around daily operations. It results in challenges when the opportunity of scaling starts knocking on the door.
As I was listening to the challenges, it was clear that one of the common mistakes founders make is not to build the properly documented processes early on. In the excitement of growth, there is a tendency to ignore the boring job of building robust processes around daily operations. It results in challenges when the opportunity of scaling starts knocking on the door.
Building a business from a scratch is an exciting opportunity to test one's resolve. It is also a test of one’s ability to move from big picture to small details easily. It can be a great way to find out individual weaknesses. One way to manage this challenge is to have cofounders who can complement each other. I am a strong believer that companies should have two or three founders in a business.
Founders also need to build a set of advisors who can be a sounding board time to time. One needs to be careful in choosing them. But if done properly, they can help to avoid pitfalls and bring in the necessary network to the company.
The fourth area is to have proper legal and accounting support in place from initial stages. It may seem additional expenses, but as the businesses grow and looking for outside investments, things may fall apart if those are not taken care of properly.
Note: This piece originally appeared on Linkedin pulse
