Team, timing and execution — the trinity of success | Tech Crunch

Spread the love


Last year, 2023The tech world will be remembered for the massive losses, not to mention the most significant US bank collapse since 2008, with 3,200 startups and more than $27 billion in venture funding evaporating.

At the same time, venture capital in early-stage businesses has declined significantly, with VCs becoming more attentive and leery of entrepreneurs who can't articulate a clear path to profitability.

While investors seem confident that deal flows will pick up in 2024 after a 12-month cage and a lot of dry powder will accumulate, the onus is on startup teams to convince VCs of their backability.

In fact, many entrepreneurs – especially first-time entrepreneurs – may end the year with disappointment. They continue to operate under the dualistic myth that ideas are sacrosanct and technological superiority is the key to startup success.

Great ideas are common, great teams are not

As Bill Gates famously said, “Intellectual property has the shelf life of a banana!” First, entrepreneurs must understand that entrepreneurial success is not about the idea. There is no shortage of great business ideas out there; Indeed, its multiple entrepreneurs often experience the same lightbulb moments and develop nearly identical business propositions.

Startups are most likely to succeed because of the quality of the team, their ability to execute and their punctuality – the most elusive aspect of company structure.

What makes startups more likely to succeed is the quality of the team, their ability to execute and their sense of timing.

Like many seasoned investors, I have been preaching the virtues of “team, timing and execution” for years. Furthermore, I meet a cohort of founders who are still strong in tech, but need more basic company leadership skills and the necessary interpersonal skills.

Don't get me wrong — technical expertise is undoubtedly necessary, especially when building enterprise SaaS solutions where “good enough” isn't actually enough. However, this is only a small part of the puzzle.

According to the Carnegie Institute of Technology, 85% of financial success comes from a person's soft skills and ability to communicate, negotiate and lead effectively. These entrepreneurs can convey a clear message, demonstrate passion, demonstrate empathy, and build customer rapport, helping them identify product-market fit and mastering the sales process.

Likewise, they are more likely to assemble successful teams and take everyone along on a difficult growth journey because they understand what it means to run a business and be a CEO – hire, fire and execute the business plan with laser-focused clarity.



Source link

Leave a Comment