Position Your Startup for the Long-Term

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When starting a new business, there’s a strong temptation to make decisions for the short term. But you need to anticipate the long-term challenges. There are three things it’s critical to get right:

  • Co-founders. The natural inclination is to co-found with family or friends. But these relationships can be fraught. Plus you’re more likely to have similar perspectives. Look for partners who bring complementary skills and assets.
  • Roles. Most founders want a C-level title. After all, they were there from the start. But choose roles that reflect the actual work each founder will do, not the fancy title he wants to show off.
  • Rewards. One of the biggest questions for start-ups is how to split equity ownership. A handshake on 50/50 will not do, because almost all new companies will have a major change in strategy or founder involvement. Negotiate an arrangement that can change when circumstances do.

Adapted from “Three Pitfalls Startup Founders Must Avoid” by Noam Wasserman.

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I am compelled to suggest the 4th thing: Understanding Your Location. A business is something that should be regarded long-term. Hence, anything that's going on with your geographical locations have impact to your business - whether it's big or small. Start up should start from collating all necessary details about your location and then make a thorough analysis on how it could affect your business. What's the group majority in your area? What are their needs? What risk factors should you be concerned of? As you learn the answers to these questions, you are likely to offer just the right services - long term!