Startups

Why Startup Founders Need Coaching

Why Startup Founders Need Coaching

Happy New Year!

As a founder, a new year brings more opportunities to grow your business but what about you as a founder?

To become the best version of yourself, you can consider getting a coach.

Having a coach that can guide you through your entrepreneurial journey is critical.

An idea, no matter how good, does not automatically equal a successful startup. It’s just a vision.

We always advise founders to use it as a blueprint, create a product roadmap around it, establish your goals and milestones to work towards. It all sounds easy but it can be hard to put into practice.

The phrase ‘I am a founder of a startup’ sounds very captivating because the idea of being your own boss is exciting and attractive.

In reality, approximately 90% of startups fail. 90%!

So how do you increase the likelihood of success for your startup?

Firstly, you must have:

  •  Established that you’re solving a real problem in society.
  •  Created a Minimum Viable Product (MVP) to solve the problem.
  •  Tested the MVP, acquired early users or customers and show signs of a high growth trajectory.

You still have long way to go but a coach can help you with:

  •  Providing actionable advice and give constructive feedback.
  •  Hold you accountable to goals and milestones.
  •  Avoid common entrepreneurial pitfalls.
  •  Understand your strengths and weakness.

Lastly, being coached isn’t a quick fix and you as the ‘founder’ and leader of your company - you have to do the work.

Dedicating time and effort into your own self-development will turn you into a better leader.

During the lifecycle of your company, the industry you operate in will likely change, new technologies will emerge and you will have to deal with the competition.

You are only going to win if you are learning and developing faster than your competition.

Working with a coach can be deemed expensive but it should be viewed as an investment. In the long-run, the rewards you gain will be significant.

P.S: We are currently open to advising new high growth startups run by passionate founders. If you believe (or you can refer a friend) you need help starting up, feel free to contact us.

How to Think About Equity

Why are some founders scared to approach equity?

As we are kicking things off at Community Growth Ventures (CGV), we are having more conversations with founders - reach out to us if you want to grow your company.

Quite a few times discussions about recruitment have led to equity.

Quite a few times founders have expressed their dismay that they have to split equity to get co-founders and critical employees.

Yes owning a 100% of your company is cool. You call the shots, get the fancy CEO title and you are the boss. 

But building a company, at the early stage, with barely any revenue and few customers is hard.

It is bloody hard. Even Elon Musk finds it hard.

“Starting a company is like eating glass and staring into the abyss” - Elon Musk

Unless you have the money to pay for contractors/outsource key functions, you have to recruit people to fill these roles.

How do you do that?

Simple. By splitting equity with co-founders and employees.

It is hard recruiting talented people, let alone in a competitive city like London.

Not everyone is motivated by money, some people want to build something from the ground up and be a key player in a company.

Since money is low, your equity has to be in play.

Think about it, would you leave your corporate job to go work for at an early stage cash-strapped startup, where the founder owns 100% and is not open to sharing equity?

No you wouldn’t, that makes no sense.

Owning 100% of nothing sounds cool on paper but when you have the opportunity to own 20% - 60% of a growing revenue-generating company. It is pretty obvious which option makes sense.

Don’t let your ego cloud your judgement, think about putting equity in play to acquire a team that can help grow your company.