The final step to follow to determine if your idea will be a Start Up success is to assess if you have the right team behind you. In our article Start-Up Series: 7 Step Guide to Assessing Start-Up Success we promised a series of articles to help assess which of your great ideas have the potential to go all the way.
If you have been following our 7 step guide, by the time you reach this final hurdle you would have defined the problem clearly in step 1, determined in step 2 that there is value in the solution, identified the market size for that solution in step 3, assessed the competition in step 4 and developed a model to prove financial viability in step 5 and understood your capital requirements to get the business to a breakeven point in step 6.
Now it all comes down to execution. Does the business have in place a passionate team that are capable of implementing the plans and strategies covered in the first 6 steps to drive the idea into a successful business?
A good way to determine if everyone who is likely to form part of your team is right for your business is to ask them a few questions:
- Do they believe in and have a passion for the business and its vision?
- Are they willing and capable of putting the regular and then the extra effort required?
- Can and will they effectively communicate what they are doing and the progress they are making?
- Do they have the confidence to make a decision when required?
- Will they stick it out when the business encounters those inevitable setbacks?
- Do they possess exceptional skills in their area of expertise?
Then collectively determine whether the group can work effectively together as a team.
Next, assess whether the team has the right skills mix. The team collectively should cover at least the following skillsets:
- Technical – someone needs to deeply understand and be able to deliver the product or service on offer.
- Sales – without sales there is no business and someone needs to sell it, the greatest technical skills and knowledge don’t necessarily translate into an ability to sell.
- Customer Support – quite often people think that the sales people can handle the customer service, however we contend that often the skills required to sell are different to the skills required for ongoing after sales customer service. Of course happy customers will result in referrals and repeat business.
- Administration – methodical, boring and the bane of every entrepreneur. Without a solid administration platform in place things can fall apart quickly. Often overlooked and undervalued by entrepreneurs it is just as important as the other skills.
- Finance – without money the business will not survive. Having the ability to monitor the results, manage and project the cash flow, and provide regular reporting to assist other team members make decisions is an essential part of any business.
It is quite a journey to implement this assessment step by step but by completion you will have:
- Clearly defined the problem being solved.
- Determined that the solution creates value.
- Quantified the size of the market.
- Assessed the competitors and determined a target market share.
- Assessed the financial model and viability of the business.
- Determined that there is a financially viable plan to go to market and achieve a breakeven point with a defined value of start-up capital.
- Assessed whether the business has access to the right team to be successful.
When going through this process it is important that you have done so with a realistic, impartial and honest mindset. This will give you the best insight to assess the commerciality of the business concept.
If you have read this as a team member of a start-up business and have not ticked all of these boxes, then don’t despair. Assess what progress you have made in each step and put the remaining elements into a road map for what needs to be included in your business planning to give it the best chance to succeed.
We hope you have found this 7 step guide series helpful in assessing the potential success of your ideas. Download the full 7 Step Guide to Assess your Start-Up Success and contact Matthew Beasley on 3218 3900 for an obligation free discussion on any steps that you require assistance with.
Please note that this publication is intended to provide a general summary and should not be relied upon as a substitute for personal advice.