The mortality rate for young startup companies is staggering. There is no disgrace or reason to apologize for being a “start up“, As all companies and all great ideas start somewhere. However, most startups fail and hence no one want to invest in them. In most cases, only your friends and family are going to give you any initial capital and in many cases, they will also be reluctant.

Given all of these facts, there are some common sense rules that young startup companies should follow:

1. Be prepared to “pay up“ for critical beginning capital, both in terms of commissions and the percent of the Company that will accrue to your early investors. Otherwise, you will end up with 100 % of nothing. Also keep in mind that your earliest investors may lose 100 % of their money if you fail.
2. Contain your costs and overhead. Every dollar that goes to overhead is a dollar that you do not have to build your business. As an example your home may work just as well for an office.
3. In looking to sell your services or products, create the perception of being a much larger organization. A “one person band“ is not attractive to either investors or customers. You have to orchestrate market perceptions of yourself and your Company.
4. Assuming that you have a background of success in prior jobs or ventures, utilize fully and leverage the value of your resume’. People want to know who you are and what you have done. Do not lie, as in a google age, you will be found out.
5. Use your rolodex of relationships as a resource. The people who know and trust you are a valuable enhancement to your future. List out absolutely everyone who could potentially bring value to the table and methodically call everyone of them.
6. Early, take every client and customer that is available to you. This is not a time to be picky or proud. You are looking for even minimal revenue and validation. Nothing happens until you sell something.
7. Price your services or products at whatever the market will bear in the beginning. You can worry about margins later.
8. Spend more time prospecting than analyzing. While analysis can be important, it can also be an excuse for busy work. That is the reason for the phrase “paralysis of analysis.“
9. Concurrently, remember that products, services, and even great technologies are sold, not bought. No one beats a path to your door. Ultimately, it is all about sales.
10. Look for partners, relationships, and associates who can work with you for a piece of the action. They will bring talents and resources that you may not have. They are also much preferable to employees!
11. Everyday, make a list of things to be done that day. That is the only way that you will know when you are done. This is a discipline that will serve you well.
12. Finally, stay from time wasters. There are a plethora of them and they will drain your time, your energy, and most importantly your income. If someone wastes your time, they might as well have taken money from your pocket.

These are lessons learned from almost three decades of working with young companies and almost 100 clients. They will serve you well.

Malcolm McGuire