Compare managing a startup to that for a large corporation and you'll boost your chances of launching a successful startup.
Let's look at DECISIONS for startups today.
The speed of decision-making startles corporate people.
It can be overwhelming to first time entrepreneurs.
It may be the reason you are not ready to do a startup at this time.
It is why startups out-maneuver established, large public corporations.
It is central to why a startup emerges as the gorilla of each new market (instead of Facebook or Google).
- Experts. Founders and their core management teams are The Experts about the new market. They understand the most about what is going on in the fresh space. Only competing startups have comparable knowledge in depth.
- Fanatics. All startup people do is spend full time figuring out how to build a great company faster than competitors. They devote their precious time to doing only that. Large corporate people have many other responsibilities, the bosses pay attention to other business and lack the passion to win in the emerging market.
- Hourly. The core team is in continuous contact with changes in the new business, both inside the startup and outside in the new market. They know who is doing what to whom in real time. Large corporate people are assigned to "do a study on this and get back to us in a meeting next month."
- Instant Recall. Founder CEOs and their VPs have facts and figures in their heads, particularly financial statistics. They are fluent with critical data. They spew it out as needed without requiring days of analysis. That's the opposite of what's done in large corporate cultures.
The result is a speed of decision-making that is breath-taking. Decisions are made in startups when people bump into each other in the hallways. Quick Skype sessions are minutes long so traveling leaders can keep employees racing ahead.
Quality control is a sensitive issue with startup decisions. The balance is tricky to set between "Enough! Let's make the hiring decision right now!" and "We need to check this person out more before making the offer." That's why serial entrepreneurs get the attention of investors. It's why first timers are checked out so carefully by VCs before they reach for their wallets. It's what experienced startup people look for in the core team before signing up.
Intuition reigns supreme in startup decision making. That drives corporate people nuts, especially those who are secure working with lots of left brained numerical analysis. But to the great venture capitalists, I belief intuitive skill is what is looked for most in the founders of the startups they invest in.
BOTTOM LINE: When you have a track record of making successful decision on the fly, you are ready to look at doing a startup. Until then, stick to working in a large corporation. Serial entrepreneurs are skilled at the balance between too slow and too fast, they get successful over and over because of that admired ability. When you can do that, you'll attract to your startup a lot of talented people and top quality investors. It will be a key element to building your unfair advantaged.
I wish you The Best on your Adventure!