I like thinking about a startup using the number 3.
Give it a try. Apply the following to your new enterprise to see how you might improve your plan for success:
- 3 makes a core team. CEO plus VP Engineering plus VP Business Development add up to the core management team that talented startup employees are eagerly looking for. Investors are even more eager to find that threesome united, ready to launch a fresh business. If you are missing members of that threesome, get going immediately to fill the missing slots. It's nearly impossible these days to get quality investors and top talented employees working for startups that have incomplete core teams.
- 3 bowling pins make your target market. The first focused market profile is the one you must win big in. The next two will follow your win in the first. The follow-on market segments are also very focused. They are closely related cousins to the first market segment. One knocked down hits two more and that starts your momentum. Sales accellerate. Employee morale rises. Investors start knocking on your door with open checkbooks.
- 3 board members is a great number. Small boards of directors work best. They make quick decisions. There is time to get to know each other well. Small is efficient. Founder, CEO and investor. After you get your multi-millon dollar round, you can add one more investor (probably a venture capitalist) and an independent who can advise you and support you, who comes with some related market experience.
BOTTOM LINE: Try testing the number 3 on your plan for your startup. That can tell you a lot about how strong your competitive advantage is. The stronger it is, the more your competition will complain it is unfair.
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