Seven tips for a successful startup

Preparing thoroughly is vital before running your own business—especially if it’s a startup. Troels Bierman Mortensen, business angel and head of two startups, gives his tips on how to get started and build a viable business.

Choose your market carefully

“This might seem obvious, but you have to do your research before taking the plunge and launching a business. You need to work out what your unique value proposition is and how you’re going to explain that to the market. That means you’ll need to think carefully about your strategy. Powerful tools like Business Model Canvas can really help at this initial stage.”

Put together a solid, like-minded core team

“You have to be reading from the same page as your business partners. You need to get some important issues ironed out upfront. What are each partner’s goals? How long can everyone commit? How much money can they put in? Is this a three-year short-term thing, or are you in for the long haul? These questions are vital if your startup is going to succeed—and be viable. And the founders’ family members need to be on board, too.”

Imagine what your first invoice will look like

“Who will you send it to? When? How much will you bill, and what for? What service will you provide after that? The first invoice is the point when your startup is actually doing business. By then, you won’t have time to think about these questions. So you have to consider them beforehand. Visualizing your first invoice gives you a clear picture of what your business will look like. And it can help to put investors’ minds at ease.”

Lead at home before going global

“There’s no point thinking about global expansion too early. It’s much better to gain a foothold in your domestic market before looking elsewhere. Any business that wants to go global should have a 25% domestic market share first. That way, you won’t be spreading yourself too thin and you’ll have a good idea of what your strengths and weaknesses are. And as you build up your domestic presence, you’ll be able to adjust your strategy if you need to—and prove to investors that you’re adaptable. They’ll be more likely to stick with you as you expand abroad.”

Reassure investors

“It’s fairly easy to understand how investors think. They’re pretty much black and white—fearful or greedy. And they tend to switch from one to the other in an instant. So it’s important to keep feeding them tangible information so they can analyze the risk-return tradeoff.”

Share the spoils

“Entrepreneurs shouldn’t focus solely on the money. Doing business is about working with people, doing something creative, and sharing your success with others. This attitude should inform everything you do, day in, day out. Always think about how you can help others—how what you’re doing might benefit them.”

Don’t conform

“Forget about bureaucracy and authority. You have to be able to work around these obstacles and have the courage to go directly to the people who matter. Just as in sport, it’s the players who decide the outcome, not the officials!”