Some people are interested in details, some are not, this startup more info page is provided for those who would like to understand the reasoning behind the system and how it works to help them.
The basis of my startup system is to gain a better understanding and control of what influences the startup outcome of any new business.
Planning is a driver that you can control. You can do as much or as little as you want. Standard areas that need effective planning are financials, marketing, business systems, product development and more....
Another component that you can control with effort. Research currently centers around the internet, however there are a plethora of business journals, reference books, business articles and more....
People who go into a new business venture without requisite knowledge are courting disaster. Knowledge and understanding of products, services, skill-sets, business operations, marketing, sales, decision making, management, communication, leadership and more....are required for success.
Relevant experience is almost priceless in most startups. As with knowledge, experience at all the different business components is vital for success. If you have business skills and/or qualifications, it is very likely you can use these for your advantage.
Some things will always go wrong but most can be foreseen and prepared for. I can show you how to compile a risk register and assess which risks are most likely to happen and the risks which could threaten your complete start up. Prevention is nearly always cheaper than fixing problems after they've occurred.
Do you have complex products and services that you are intending to sell? Are all your products already designed and tested? Is there software involved, websites, overly technical or very expensive components in your startup? Are there a lot of steps between your products and services being made and sold to a customer? if these things exist in your startup, they need to be managed so you don't get large expenses that you aren't expecting.
The startup system positive components, planning, research, knowledge and experience are all allocated a score. These scores are tallied together and the higher the score, the better.
The startup system negative components, risk exposure and complexity level are also allocated scores. These scores are also tallied together and the lower the scores the better.
The startup scoreboard is the summary of your startup scores. There is no “right” score, it is always up to you when you think you are ready to start your new business.
Planning and research are both drivers that can be improved, just by effort, therefore I think that any person starting a new business should work hard enough to get their planning and research scores at 50% or better. Knowledge and experience is a little harder to obtain and will probably take longer to get, these drivers should be somewhere above 40%, possibly 50% to start with. Risk and complexity really shouldn’t be above 60% I think, as that type of level puts the startup into a “much more likely” to fail state. High risk and high complexity usually equate to high costs and lengthy delays.
The overall success score should ideally be over 50% but how far over is up to you, but I would be aiming for somewhere around 70%.
Remember though, everything is relative. If your startup has the potential for high returns, then you may be prepared to accept high risks and high complexity.
It’s all up to you to decide.
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