Things to Ponder Before Starting a Company

Things to Ponder Before Starting a Company

Startups are my life. Literally, family is first and after that I’m all startups and business. After racing I found my new thrill in starting and building companies. It’s a blast, I almost hate to say it, but I get more out of it than I did racing. I know, I know, I shouldn’t have said that, but it’s just that awesome!

Photo Courtesy of: Striatic

Anyways, when I moved from racing to startups it was an eye-opener. I made a ton of mistakes (I’m still making them) I fell on my face, and I just keep getting right back up, learning and asking for more.

If you are thinking about staring a company, here are a few things you need to ponder before you launch out of the gate.

1) What are my goals, and how hard do I really want to work. There’s a huge difference between a startup that allows you to make a good living versus one that has a $100M payout. You need to decide and commit either way.

2) What am I truly passionate about? What is something I would be willing to work my ass off day in and day out?  If it isn’t something that gets you super horny from the start, then it’s probably not worth pursuing. Startups are a rough and long road – you need to be sure you are in love with whatever you are starting.

3) Build a short and long-term plan. Think about the future. Find a nice place (Alone or with your founders) and sit down with some financial spreadsheets, a business model canvas, and build a model for your startup. Take into account revenue, expenses, financing rounds, location, space, customer segments, value propositions, etc. If you haven’t done this before, get some help from a mentor or read Business Model Generation!

4) Do you have customers lined up or do you know people who would buy your product? If you can line people up from the beginning, it’s gonna add value to your startup. And If you can’t convince at least a handful of people to agree to try and ultimately pay for your product once it’s ready, then you should think about whether you have the right product and model. Too many companies have failed because the founders put their sweat, blood and tears into a business model that was flawed from the start.

5) The best one of all. You have to start damn it. Sitting around isn’t going to build your company. Prioritize, and get going. If you’re doing it right, there will always be more to do then you can carry out. The hardest part is deciding what NOT to do while making progress and creating momentum.

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How about you? 

Are you starting a company? Thinking about it? What are you pondering?