Successful Startup (Part 2)

Last week I named passion, courage and perseverance the three personal traits one should have to create a successful startup. But I have not precisely defined what makes a startup successful. I think Rafal Han did this in our upriser.pl video: when a startup becomes a business.

It is very important to note it does not have to be a leading, global, world - changing business. A small grocery store can be a successful startup. And a good business too. I have always admired people delivering good value, especially when it is being delivered continuously. Today, in the digital age of networked intelligence, value is scrutinized as never before. So continuous delivery of a good value is a bar set very high. You have to cross this bar. The world is still full of lackluster enthusiasm, shortcuts and crap. When somebody gets rich by riding a wave of impulse selling of million copies of an iPhone application, which is deleted by most users the day after they download it, this is not a business. Because there is no lasting value. But we will get to the business models later.

The scope of a startup can be small. And there is nothing wrong with it. If you build something that has narrow reach, like a corner grocery store or cafe, or an Internet service bringing value to a certain niche, but you operate and provide those products and services on continuous basis, you will be successful. Continuous delivery is difficult, because it requires the business to be continuously cash flow positive, and that in turn requires continuous provision of value to customers.

If you run a travel agency you have to do more than just run Google searches. If you run a small grocery store, you have to do more than just provide the same items that are available in the superstore. The difficulty is even higher for computer and mobile application creators - not being eaten by the ever expanding functionality of the operating systems and the leading Internet services.

But before you start worrying about the business model, here is my advice: follow your passion. If you are passionate about what you are doing, you will automatically deliver the highest value possible. If you love coding, your code will be the best. If you love running a hotel or a shop, customers will be coming back to you. Because your product and your service will be continuously provided on the highest level possible.

You will never be able to do this all alone. Building a startup is not freelancing. First and foremost, it is building a team. A team of people equally passionate about what they are doing in the organization, as you are. On the road to a successful startup you are the first step. Your passion, courage and perseverance are the prerequisites to make the first step.

The second step is building the team. The best ideas and the best business models will fail without a team behind them. The team able to fine-tune them and execute upon them. The team is the only foundation to your startup that will last. The ideas will change over time and there will be new ones. The business models will fail and new ones will be emerging. Building a team is the most important and most difficult process for a startup. A process that never ends. It is not only about hiring. It is about building a culture, sharing a mindset, implementing communication links, and making sure everyone is important and appreciated. With a strong team anything is possible. And nothing without.

In The Lost Interview Steve Jobs said "there's a tremendous amount of craftsmanship between a having a great idea and having a great product". In fact it is your team between the idea and the product. Build the best team you can. It is the first task after you decide to create a startup. A task that never ends.