{"id":45342,"date":"2025-01-24T17:49:40","date_gmt":"2025-01-24T17:49:40","guid":{"rendered":"https:\/\/peraltafinancing.com\/angel-investor\/best-practices-for-a-successful-start-up\/"},"modified":"2025-01-24T17:49:40","modified_gmt":"2025-01-24T17:49:40","slug":"best-practices-for-a-successful-start-up","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=45342","title":{"rendered":"BEST PRACTICES FOR A SUCCESSFUL START UP"},"content":{"rendered":"<p> <br \/>\n<\/p>\n<div>\n<div data-breakout=\"normal\">\n<p class=\"a4yOF NlrTp WzoeH SeNKp\" dir=\"auto\" id=\"viewer-tr6c4\"><span class=\"lMv7L\"><span>Having started two companies and been on the boards of several more, I have some first hand insights to what work and what doesn\u2019t for early stage companies.  While the following are my top four, there are certainly many others.  And none of these are truly unique to me.  <\/span><\/span><\/p>\n<\/div>\n<div data-breakout=\"normal\">\n<p class=\"a4yOF NlrTp WzoeH SeNKp\" dir=\"auto\" id=\"viewer-bzny4\"><span class=\"lMv7L\"><span>Similarly, there are always examples of companies who\u2019ve done just the opposite and yet prospered immensely.  <\/span><\/span><\/p>\n<\/div>\n<div data-breakout=\"normal\">\n<p class=\"a4yOF NlrTp WzoeH SeNKp\" dir=\"auto\" id=\"viewer-y67y5\"><span class=\"lMv7L\"><span>a) Amazon losing $7 on each book and making it up in volume,<\/span><\/span><\/p>\n<\/div>\n<div data-breakout=\"normal\">\n<p class=\"a4yOF NlrTp WzoeH SeNKp\" dir=\"auto\" id=\"viewer-tn2oj\"><span class=\"lMv7L\"><span>b) Twitter not needing revenue and<\/span><\/span><\/p>\n<\/div>\n<div data-breakout=\"normal\">\n<p class=\"a4yOF NlrTp WzoeH SeNKp\" dir=\"auto\" id=\"viewer-9r29w\"><span class=\"lMv7L\"><span>c) Zenga raising money when its not needed.<\/span><\/span><\/p>\n<\/div>\n<div data-breakout=\"normal\">\n<div class=\"iwMEp\" id=\"viewer-0aj2e\">\n<div class=\"rxF05 qTNqm\">\n<figure class=\"XObdu\">\n<div role=\"button\" data-hook=\"imageViewer\" tabindex=\"0\" class=\"vhG7C\" aria-haspopup=\"https:\/\/www.pasadenaangels.com\/single-post\/2011\/02\/11\/true\">\n<div style=\"--dim-height:3456;--dim-width:5184\" id=\"0aj2e\" class=\"L2P8r Ku1Gj yS7zq\"><wow-image id=\"f83ccc_b197759dbcee4a07a7e1f01425f32aa8~mv2_d_5184_3456_s_4_2.jpg\" class=\"undefined lIVgj\" data-image-info=\"{&quot;containerId&quot;:&quot;0aj2e&quot;,&quot;displayMode&quot;:&quot;fill&quot;,&quot;isLQIP&quot;:true,&quot;isSEOBot&quot;:false,&quot;lqipTransition&quot;:&quot;blur&quot;,&quot;imageData&quot;:{&quot;width&quot;:5184,&quot;height&quot;:3456,&quot;uri&quot;:&quot;f83ccc_b197759dbcee4a07a7e1f01425f32aa8~mv2_d_5184_3456_s_4_2.jpg&quot;,&quot;name&quot;:&quot;&quot;,&quot;displayMode&quot;:&quot;fill&quot;}}\" data-motion-part=\"BG_IMG\" data-bg-effect-name=\"\" data-has-ssr-src=\"https:\/\/www.pasadenaangels.com\/single-post\/2011\/02\/11\/true\" data-animate-blur=\"\"><img decoding=\"async\" src=\"https:\/\/static.wixstatic.com\/media\/f83ccc_b197759dbcee4a07a7e1f01425f32aa8~mv2_d_5184_3456_s_4_2.jpg\/v1\/fill\/w_147,h_98,al_c,q_80,usm_0.66_1.00_0.01,blur_2,enc_auto\/f83ccc_b197759dbcee4a07a7e1f01425f32aa8~mv2_d_5184_3456_s_4_2.jpg\" alt=\"\" style=\"width:100%;height:100%;object-fit:cover;object-position:50% 50%;max-width:100%\" data-pin-url=\"https:\/\/www.pasadenaangels.com\/single-post\/2011\/02\/11\/best-practices-for-a-successful-start-up\" data-pin-media=\"https:\/\/static.wixstatic.com\/media\/f83ccc_b197759dbcee4a07a7e1f01425f32aa8~mv2_d_5184_3456_s_4_2.jpg\/v1\/fill\/w_5000,h_3333,al_c,q_90,usm_0.66_1.00_0.01\/f83ccc_b197759dbcee4a07a7e1f01425f32aa8~mv2_d_5184_3456_s_4_2.jpg\" draggable=\"false\"\/><\/wow-image><\/div>\n<\/div>\n<\/figure>\n<\/div>\n<\/div>\n<\/div>\n<div data-breakout=\"normal\">\n<p class=\"a4yOF NlrTp WzoeH SeNKp\" dir=\"auto\" id=\"viewer-eun30\"><span class=\"lMv7L\"><span>So without further adieu, here\u2019s what I look for as best practices within an early stage company:<\/span><\/span><\/p>\n<\/div>\n<div data-breakout=\"normal\">\n<p class=\"a4yOF NlrTp WzoeH SeNKp\" dir=\"auto\" id=\"viewer-lff1i\"><span class=\"lMv7L\"><strong style=\"font-weight:700\"><span>Ideas are easy, Implementations are hard<\/span><\/strong><\/span><\/p>\n<\/div>\n<div data-breakout=\"normal\">\n<p class=\"a4yOF NlrTp WzoeH SeNKp\" dir=\"auto\" id=\"viewer-kj6fj\"><span class=\"lMv7L\"><span>While its imperative that companies be able to pivot based on customer feedback (see bullet point four below), its also important not to fascinate from idea to idea.  When I hear companies worried about someone stealing their idea, I wonder if they realize how hard it is to actual get the idea off the ground.  Most great ideas aren\u2019t radical departures from the established baseline, just better implementations (Facebook to Myspace \/ Google to Yahoo).<\/span><\/span><\/p>\n<\/div>\n<div data-breakout=\"normal\">\n<p class=\"a4yOF NlrTp WzoeH SeNKp\" dir=\"auto\" id=\"viewer-1gptp\"><span class=\"lMv7L\"><strong style=\"font-weight:700\"><span>Bootstrap as long as you can<\/span><\/strong><\/span><\/p>\n<\/div>\n<div data-breakout=\"normal\">\n<p class=\"a4yOF NlrTp WzoeH SeNKp\" dir=\"auto\" id=\"viewer-2shix\"><span class=\"lMv7L\"><span>Speaking as an Angel, I know that companies really do need capital to push their ideas forward.  However, once an Entrepreneur takes capital from outsiders, there\u2019s another whole agenda to work through.  Instead, family, friends, and even customers and suppliers can be a good source of capital or credit.  (Note, be wary of strategic investments to soon as that can restrict your options later on.)  Only go to outside investors when you\u2019re ready to tell them a plausible story that you can return 5 to 10 times their money in 3, 5 or 7 years.  That\u2019s their agenda.<\/span><\/span><\/p>\n<\/div>\n<div data-breakout=\"normal\">\n<p class=\"a4yOF NlrTp WzoeH SeNKp\" dir=\"auto\" id=\"viewer-dfgan\"><span class=\"lMv7L\"><strong style=\"font-weight:700\"><span>Get a great advisory team<\/span><\/strong><\/span><\/p>\n<\/div>\n<div data-breakout=\"normal\">\n<p class=\"a4yOF NlrTp WzoeH SeNKp\" dir=\"auto\" id=\"viewer-doirh\"><span class=\"lMv7L\"><span>Having just bashed outside investment, allow me to build it back up a bit.  With external capital, can come access to new customers, resources and suppliers.  \u201cMore than the money\u201d is the tag line of the Pasadena Angels.  We bring industry contacts, a wealth of business experience and hopefully access to new revenue sources \u2014 a.k.a. customers.  Make sure you get investors who can help push the company forward.<\/span><\/span><\/p>\n<\/div>\n<div data-breakout=\"normal\">\n<p class=\"a4yOF NlrTp WzoeH SeNKp\" dir=\"auto\" id=\"viewer-1qcbv\"><span class=\"lMv7L\"><span>All companies \u2014 from the largest to the smallest can get bogged down in the minutia.  Not to say that executing and \u201cminutia\u201d are not important, but early stage companies rarely have problems more significant than generating revenue.  Get those first customers \u2014 even beta customers that don\u2019t generate sales \u2014 and prove a big validation point.  People want to use the product.  Of course, getting paying customers, and even customers that pay more than the product costs (can you say gross margin?) are part of the natural evolution of a company.  But its those first customers \u2014 the early adopters \u2014 really give insight and prove whats value.  Get out and interact, see what qualities of the product mean the most.  <\/span><\/span><\/p>\n<\/div>\n<\/div>\n\n","protected":false},"excerpt":{"rendered":"<p>Having started two companies and been on the boards of several more, I have some first hand insights to what work and what doesn\u2019t for early stage companies. While the following are my top four, there are certainly many others. And none of these are truly unique to me. Similarly, there are always examples of [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":45343,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12034],"tags":[16681,5454,11120],"dealstore":[],"offerexpiration":[],"class_list":["post-45342","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-angel-investor","tag-practices","tag-start","tag-successful"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>BEST PRACTICES FOR A SUCCESSFUL START UP - Som2ny Network<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/fivemor.com\/?p=45342\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"BEST PRACTICES FOR A SUCCESSFUL START UP - Som2ny Network\" \/>\n<meta property=\"og:description\" content=\"Having started two companies and been on the boards of several more, I have some first hand insights to what work and what doesn\u2019t for early stage companies. 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