JAHAN [🌎] MALIK’s Post

Navigating the Pros and Cons of KPIs in Early-Stage Startups In the dynamic world of early-stage startups, tracking progress is paramount. Key Performance Indicators (KPIs) offer structured methods to measure and guide a startup’s journey, despite the size of the team. While many founders may initially view these metrics as cumbersome, the benefits they provide far outweigh the perceived drawbacks. The Pros 1. Tracking Progression: KPIs allow startups to track their progression meticulously. This tracking is crucial for internal motivation, particularly during the challenging days when progress seems minimal. By looking back at KPIs, founders and teams can see the strides they have made, reinforcing their commitment and drive. 2. Strategic Adjustment: KPIs also serve as a reality check. They help identify what’s working and what isn’t, allowing startups to pivot or adjust strategies swiftly. This agility is one of the fundamental advantages of a startup over larger corporations. 3. Investor Confidence: Future investors are keen on seeing data-driven projections and results. A well-maintained set of KPIs demonstrates that the startup is serious, transparent, and data-oriented, making it a less risky investment. 4. Board Communication: For startups that have already secured investment, regular KPI tracking simplifies communication with the Board of Directors. It builds trust, fosters transparency, and enables more meaningful strategic discussions. The Cons 1. Potential Slowdown: Implementing and maintaining KPIs can slow down operations if not managed properly. Startups might spend excessive time tracking metrics that aren’t crucial, leading to busy work that detracts from core activities. 2. Decision Paralysis: Over-reliance on your KPIs can sometimes hinder decision-making. Startups might stick to a pre-set plan even when it’s no longer effective, delaying necessary pivots. 3. Highlighting Failures: KPIs can make failures more visible, which might be seen negatively by some investors. However, experienced investors understand that failure is part of the innovation process and appreciate the ability to adapt and learn from these failures. To maximize the benefits of KPIs without falling into the traps, startups should: - Apply the least amount of methodology necessary. - Focus on a few critical KPIs that are directly tied to their goals. - Regularly reassess and adjust KPIs to ensure they remain relevant and impactful. Ultimately, KPIs are about storytelling. They chronicle the journey of a startup, detailing the challenges, pivots, successes, and learnings. This narrative is invaluable not only for internal motivation and strategic adjustment but also for communicating with investors, boards, and the wider market. At Wren Insight Group, we specialize in helping startups define and manage their KPIs, ensuring that they not only track their progress but also craft compelling stories that drive investment and growth.

In the future, will all businesses be startups? 👀 In 2016, McKinsey found that the average life-span of companies listed in Standard & Poor’s 500 was 61 years in 1958. By the date of the report (2016), it had dropped to less than 18 years. The research also suggested that by 2027, 75% of the companies quoted on the S&P 500 in 2016 will have disappeared. IMD, 2016 Last year - it was reported that 52% of Companies in the Fortune 500 List had disappeared over the last 20 Years. Accesswire, 2023 There are 50 million new startups launching every year. On average, 137,000 startups emerge every day. Microsoft, CEE Multi-Country News Center, 2022 In the near future, the startup mentality is likely to make up the majority of the economy. At the same time, the average lifespan of a startup is about five years. And the odds of a startup making it to their fifth year are about one in three. Archimedia Accounts, 2024 The work environment is changing drastically. It's more volatile than ever. Large organisations are destabilising and the world of work is risky. It changes fast and the power-skills lie with those able to innovate, collaborate and iterate. Identifying real problems and creating effective solutions - fast. When we consider that the best businesses are founded on solving meaningful problems in the world; there is an opportunity to alter the face of human development. Of course, how future generations are educated needs to be severely reviewed at all levels of society, but the landscape is changing beneath our feet - affecting workforces right now. Lessons and wins from my mistakes* working in a startup: 💡 Access to problem solving networks are going to be more important than any degree, course or qualification 💡 Real time conversations with trusted groups are golden - to share best practice, real life experiences and cross-pollinate ideas for faster problem solving 💡 Value your time with those you serve - your customers - more than your work. Understand their changing needs and pains. Build systems to experiment, fail and get feedback fast 💡 Make your mission, north-star and plan simple. Help your teams see the customer pains and bring their best to the week. Make it easy to focus on the real pain 💡 Whilst you’re obsessed with solving your customer's pains; make time for yourself and your team. Value how you come together and how you talk to each other. The best thing about startups should be that you're in it together! *Always a work in progress

Why Small to Medium-Sized Startups Are More Successful with Less Risk In the fast-paced world of entrepreneurship, small to medium-sized startups often face significant challenges. However, contrary to popular belief, these companies have a greater chance of success with less risk compared to their larger, heavily-funded counterparts. Here’s why: 1. Agility and Flexibility Small to medium-sized startups are incredibly agile. Without the bureaucracy that often hampers larger corporations, these businesses can pivot quickly, respond to market changes, and innovate on the go. Whether it’s a shift in consumer behavior or the introduction of new technology, they can adapt without the friction of extensive approval processes. 2. Lean Operations, Lower Costs Running lean is a crucial advantage. Instead of hiring large teams or investing heavily in resources that might not be necessary, these startups focus on what really matters. This lean approach reduces overheads and allows the startup to stay financially healthy even during challenging times. They are experts at maximizing every dollar, which mitigates risk, especially in uncertain markets. 3. Focused Product Development Smaller startups tend to focus on a single problem or niche market. This laser-focused approach allows them to develop solutions that truly meet the needs of their customers. By keeping their product line or service offerings narrow, they minimize the risk of spreading themselves too thin. As a result, they can deliver better quality and ensure market fit before scaling up. 4. Strong Customer Relationships Small startups tend to maintain closer, more personal relationships with their customers. This direct connection allows them to receive real-time feedback, adjust quickly to client needs, and build brand loyalty early on. Larger organizations often struggle to maintain this level of intimacy with their customer base, leading to a loss of engagement and, in turn, higher risks of failure. 5. Incremental Growth, Less Risk Unlike large startups that are pressured by investors to grow quickly, small and medium-sized startups can afford to scale at their own pace. They are often bootstrapped or have smaller rounds of funding, which means there’s less pressure to deliver immediate returns. This slow, steady growth allows them to make informed decisions and avoid the pitfalls of overexpansion, a common risk for larger ventures. 6. Entrepreneurial Passion and Commitment In smaller startups, the founders are often hands-on in every aspect of the business. Their passion and drive keep the company focused on its mission, and this level of dedication often leads to more calculated decisions. They understand the risks at a ground level, allowing them to make more thoughtful, less risky choices as the company grows. Conclusion Small to medium-sized startups are uniquely positioned to succeed by capitalizing on their flexibility, lean operations, and close customer relationships.

Why Most Startups Fail in Their First Year: Insights and Lessons According to recent data, around 20% of startups fail within the first year, and about 50% fail by their fifth year. Understanding why these failures occur is crucial for aspiring entrepreneurs to navigate the perilous early stages of their ventures. 1. Lack of Market Need One of the primary reasons startups fail is the lack of a genuine market need for their product or service. A study by CB Insights found that 42% of startups fail because there is no market need. Entrepreneurs often fall in love with their idea without validating whether there is a substantial customer base willing to pay for it. Conducting thorough market research and engaging with potential customers early on can help ensure there is a real demand. 2. Insufficient Capital Running out of cash is a critical issue that leads to the downfall of many startups. Around 29% of startups cite lack of funding as a primary reason for failure. Startups often underestimate the amount of capital required to reach profitability and sustain operations. Building a robust financial plan, securing adequate funding, and managing cash flow meticulously are essential to avoid this pitfall. 3. Inadequate Team Composition A strong, cohesive team is the backbone of any successful startup. However, 23% of startups fail due to not having the right team in place. This includes both the lack of necessary skills and poor team dynamics. Founders should prioritize building a team with complementary skills and a shared vision. Additionally, fostering a positive and collaborative culture is vital to navigate the challenges of the startup journey. 4. Poor Business Model Approximately 17% of startups fail due to issues related to their business model. Startups need to ensure their revenue model is viable and scalable. Continuous iteration and adaptation based on feedback and market conditions are crucial for refining the business model. 5. Competitive Pressures 19% of startups fail due to being outcompeted. It is essential for startups to conduct competitive analysis, identify unique value propositions, and continuously innovate to stay ahead in the market. 6. Product Problems Issues related to the product itself, such as poor product quality or lack of features that meet customer needs, account for 17% of startup failures. Startups should focus on building a minimum viable product (MVP) and iterating based on user feedback. 7. Pricing and Cost Issues 18% of startups cite pricing and cost issues as a reason for failure. Startups need to find the right balance between competitive pricing and maintaining healthy profit margins. Understanding customer value perception and cost structures can aid in setting optimal pricing strategies. #StartupSuccess #Entrepreneurship #BusinessGrowth

Navigating the New Era: Sustainable Scaling for Startups In the challenging economic landscape of 2023, where global startup investment plummeted by 38% to $285 billion, the enduring optimism among founders stands out. Despite the downturn, over half of startup leaders remain confident in their growth capabilities, showcasing a remarkable resilience that's both inspiring and instructive. A Paradigm Shift: Strategic Focus Over Blind Expansion The era of pursuing growth at any cost is fading, making way for a more strategic, focused approach. Successful startups are now prioritizing profitable core products and efficiency in their operations. This shift from expansive ambitions to a disciplined, efficient action plan marks a significant departure from past practices, emphasizing the importance of a well-defined strategy for sustainable growth. Efficiency as a Growth Tactic The transition to prioritizing revenue and margins over sheer turnover has proven to be a pivotal strategy for startups aiming for sustainability. This approach involves optimizing profitability through careful analysis of cost structures and implementing efficient ideas to reduce unnecessary expenses. Such strategic pivots towards cost-effectiveness have not only improved financial health but also ensured growth and profitability, even amidst market fluctuations. Diversifying Revenue Streams for Stability A key lesson from successful startups is the diversification of client bases and expansion into new markets. By balancing their portfolio across all products and strategically allocating resources, startups can ensure a steady revenue stream. Expanding operations beyond dominant markets, like Europe, to include the U.S., U.K., and others, also provides a buffer against localized economic downturns, positioning startups for long-term success on a global scale. As the startup ecosystem continues to evolve, the shift towards sustainable scaling strategies highlights the importance of adapting to ever changing realities! #startups #scaling #daretoscale #endeavor

In my last post, I mentioned that success is not just about having a good idea but executing it with precision and innovation. During my research, I stumbled upon a shocking statistic: Every year, over 100 million businesses are launched globally, but the majority of these ventures fail within the first few years. CityAM mentioned a 90% failure rate for new ventures. This means that annually, millions of startup founders execute their ideas and venture into business, but the vast majority do not succeed. I delved deeper into why this happens and what can be done to increase the chances of startups surviving and growing. I published my findings on the Stack-IT page. The six common reasons why startups fail and the possible solutions: #TechStartups #Innovation #Entrepreneurship #StartupLife #BusinessGrowth #WomenInTech #Funding #LeanStartups #DigitalMarketing

Last week, I posted a LinkedIn Poll with the question: What do you believe is the biggest challenge for startups in 2024? Understanding the hurdles faced by startups is more crucial than ever. From our recent poll, we've gained insightful perspectives on what entrepreneurs find most daunting. I believe that the insights we can gather from this poll will be useful to entrepreneurs who will be navigating the startup landscape this year. Dominating the poll, the challenge of MARKET PENETRATION is not just about entering new markets but also about differentiating from competitors in a saturated space. This shows the need for startups to innovate not only in their products but also in their market strategies. Market strategies could include leveraging cutting-edge technology, forming strategic partnerships, or pioneering new business models to capture customer interest and loyalty. Truly, despite a vibrant ecosystem, the competition is fierce, and distinguishing oneself is a significant hurdle. As all entrepreneurs know, capital is the lifeblood of any emerging company. However, ACCESS TO FUNDING continues to be a pivotal issue, underscoring the ongoing struggle many startups face in securing the capital necessary to scale their operations and innovate effectively. Many startups struggle with navigating the venture capital landscape or securing loans that would allow them to scale operations and accelerate growth. The high percentage points to a need for better funding avenues, perhaps through more accessible venture networks, angel investors, or government grants tailored to the unique needs of startups. TALENT ACQUISITION or, more specifically, attracting the right talent, is crucial for the success of any venture. The relatively lower concern for this may reflect a more robust job market, yet the challenge remains in finding individuals who not only possess the necessary skills but also fit the dynamic and often unpredictable startup culture. This highlights the importance of building a strong employer brand and creating an environment that attracts and retains high-caliber talent. While it's the least concerning for most, REGULATORY COMPLIANCE can still pose significant hurdles, particularly for startups in highly regulated sectors such as finance, health, and even biotech. This low percentage also indicates a need for more awareness and preparedness to handle compliance as scaling progresses. These insights suggest that while startups are primarily battling with market visibility and financial support, the integral roles of talent management and regulatory strategy cannot be overlooked. As we continue to support and understand the startup ecosystem, let’s further discuss the strategies that can most effectively address these challenges. Are there untapped resources or networks that could ease these burdens? Tell me what you think in the comments section. #Entrepreneurship #BusinessChallenges #StartupLife #InnovationManagement

Six Common Reasons Why Startups Fail & Possible Solutions 1. Poor Execution: According to FounderJar, only a small fraction of startups survive, often due to poor execution. Solution:  Conduct thorough market research and validation. Adopt the lean startup methodology to pivot based on market feedback. 2. Funding Challenges: Many startups struggle to secure adequate funding. Business2Community notes a significant drop in global venture funding, which impacts the availability of capital for new ventures. Demand Sage pointed out that most startups rely on personal savings or small loans rather than venture capital, which can be insufficient for growth. Solution:  Diversify funding sources and practice meticulous financial management. Consider bootstrapping, angel investors, and crowdfunding. Hiring a financial advisor or using robust financial management tools can be beneficial. 3. Cash Flow Problems: A common issue is maintaining positive cash flow. FounderJar reported that cash flow problems are a major reason for startup failures. Embroker stated that cash flow problems caused 82% of business failures in 2023. Solution:  Implement accurate cash flow forecasting and efficient resource management to avoid surprises and maintain liquidity. Negotiating better terms with suppliers and optimizing inventory levels can also improve cash flow 4. Market Fit Issues: Many startups fail because their products or services do not meet market needs. FounderJar mentioned that 34% of startups fail due to a lack of market-fit products or services. Solution:  Continuously seek customer feedback and launch a minimum viable product (MVP) to refine the product-market fit. Be prepared to pivot if the initial market assumptions prove incorrect. Staying flexible and willing to adapt strategies based on market demands is crucial for long-term success. 5. Economic Fluctuations:  The global economic environment affects startup funding and success. Business2Community discussed how economic downturns have led to a decrease in venture capital funding. Marketsplash noted the significant impact of economic changes on startup investment, with a notable decline in funding during economic downturns. Solution:  Develop a resilient business model and maintain a lean operation to withstand economic downturns. 6. Gender Disparities in Funding:  There is a significant gender gap in venture capital funding. According to Embroker male founders received far more venture capital than female founders in 2022. Solution:  Build strong networks, seek mentorship, and participate in women-focused accelerator programs to increase visibility to investors. By addressing these challenges with proactive strategies, startups can navigate the competitive landscape and thrive. If you found this helpful, please like, share, and comment with your thoughts. #TechStartups #Innovation #Entrepreneurship #StartupLife #BusinessGrowth #WomenInTech #Funding #LeanStartups #DigitalMarketing

🔎 Spotting Potential: How to Identify Promising Ideas in the Startup Space Navigating the startup landscape can be challenging for entrepreneurs and investors alike, given the abundance of ideas—some innovative, others lacking potential. Here are key indicators to help you spot promising startup ideas worth your investment. ◾ Market Demand and Problem-Solution Fit A strong startup idea addresses a specific market pain point. Conduct market research to assess demand and look for startups that have validated their concept through customer engagement. As venture capitalist Marc Andreessen states, “A startup is a company that is trying to find a repeatable and scalable business model.” Understanding how a startup meets customer needs is crucial. ◾ Strong Founding Team The founding team's quality is often a startup's greatest asset. Look for teams with complementary skills, a shared vision, and a proven track record. Resilience and passion are critical traits — investor Richard Branson notes, “You can’t teach people to be passionate; they have to be that way on their own.” A motivated team boosts the chances of overcoming challenges. ◾ Scalability and Business Model Evaluate the scalability of the business model. Can the startup grow without a proportional increase in costs? Software products with a SaaS model typically exhibit good scalability, as they can serve more customers with minimal operational expense increases. ◾ Unique Value Proposition What sets the startup apart from competitors? A clear unique value proposition (UVP) effectively communicates the product or service's uniqueness. Simon Sinek emphasizes starting with ‘why’—understanding the motivation behind the product can resonate with both customers and investors. ◾ Market Trends and Timing Aligning with emerging trends is essential for startup success. Is the startup tapping into areas like sustainability or digital health? Timing can significantly impact success—launching a telehealth platform during a pandemic is a prime example of leveraging market readiness. ◾ User Engagement and Initial Traction Assessing initial traction is vital. Metrics such as user engagement, growth rates, and revenue provide insights into potential success. Startups with an established community or loyal customer base early on are more likely to attract and retain customers. ◾ Finding the Next Big Idea Identifying promising startups requires a mix of analytical thinking and intuition. By focusing on market demand, team strength, scalability, unique offerings, market relevance, and traction, investors and entrepreneurs can increase their chances of spotting flourishing ideas. At Go Global World, we connect innovative startups with experienced investors. If you’re looking to invest in promising ideas, join us today and embark on an exciting entrepreneurial journey! https://lnkd.in/gU6876Vc

If Your ‘Startup’ Isn’t Innovating, Is It Just… a Business? The term “startup” has indeed broadened significantly from its original focus on innovative, tech-driven companies. Traditionally, “startup” referred to a young company with a scalable business model, often aiming to disrupt industries with new technology. It implied a high-growth trajectory, significant investment in tech, and often, a certain level of ambiguity around profitability—because innovation was the focus, not just making quick cash. Today, though, “startup” is often used as a catch-all for nearly any new business, especially those with uncertain revenue models or young leadership teams. This shift can be attributed to a few things: 1. Cultural Appeal: “Startup” has become a buzzword, associated with cool workspaces, flexible work cultures, and innovation. For many, identifying as a startup adds appeal to investors, talent, and customers. 2. Investment Narrative: In recent years, venture capital has funded a wide range of ventures, not all of which are tech-focused or high-growth. By calling themselves startups, businesses can align with VC-backed ideals, suggesting they have growth potential and can scale quickly—even if they’re operating in less traditional startup spaces. 3. Ecosystem Expansion: As entrepreneurship has flourished, the startup ecosystem has evolved to support various business types, not just tech. This has led to a rise in “lifestyle startups,” “mom-and-pop startups,” or businesses in traditionally non-tech sectors that adopt startup branding to attract attention and funding. Ultimately, while the term has become less focused, it does reflect an entrepreneurial mindset. Still, there’s value in distinguishing between a “tech startup” aiming for high innovation and disruption and a “new business” that’s simply young and unproven.