7 Things I Have Learned From Startup Founders

Knowledge sharing has an amazing multiplier effect.

In my day to day advisory interactions with new age businesses, including clients, acquaintances, referrals and friends, there is much I have learned.

Hope the gist of these learnings will help refine your own thought process while building a startup

#1 Clarity of thought

The uncharted path of startup means doubts. Clarity of thought helps.

But Clarity doesn’t mean eliminating doubt. Its a realisation that things can go wrong and mitigating what’s in control.

Clarity also means not giving into temptations of widening, narrowing or pivoting your core proposition too early

#2 Talk to strangers

They speak to as many as possible, sharing ideas, taking feedback.

You either find strangers with some ‘benign agendas’ or some ‘happy to help’ folks. Its tough to discern. But dont stop making these cold calls.

Either ways, you still find good ideas and sometimes true wisdom in these stranger interactions.

( A caveat : World is not here for charity)

#3 Customer before technology

Your core may be tech but if you dont know your customer, you are likely to falter. Tech is a tool even when you are a software company.

While investors love tech, customers love solutions.

#4 Scale over profit

By definition startup is a disruptor. Unless you demonstrate your idea is scalable, there is no fun and sustenance. Without scale there is no first-mover advantage. So, while the world preaches ‘profit’, there is a critical mass you need to acquire.

Dont get me wrong. Profit is a good thing but ….

Little profit at Small scale isnt why you started.

#5 Chemistry over Mathematics

If the core team does not have chemistry and complimentary skills, all calculations based on pedigree, esop, sweat equity and profit sharing are meaningless.

If you understand tech, get a cofounder or a close advisor who understands business. If you know business, get someone close enough to leverage technology.

You get 1+1=11 only through chemistry and not maths

#6 Ready to fail

This one’s about mental preparation.

A startup is a an experimentation. It cannot happen with all factors known and needs improvisation. No matter how meticulous the plan, there are variables beyond your control.

Do bank on luck and best wishes but keep reminding that banks go bust too.

#7 Beware of penalty line

Much disruption happens around the red line of regulations. More so in fintechs.

Some Innovations do happen in safe zone but these are incremental, require large capital and scale. If that is not your case, identify new areas, with nascent regulatory lines, to get first mover advantage.

But this also means extra caution. Dont push your luck too far with all things unethical.

A caveat though: While there may be a pattern, I would be wary to generalise and say these 7 are THE ‘common traits’. Different founders have different approaches and thought process about how they build up their startups. Not everything fits in every context. So take your pick.

Author Profile

Amit Balooni is the Founder of FrankBanker. In his 20+ years banking and consulting career, he has worked with leading banks and now advises banks and Fintechs globally on SME, SCF, Credit Risk and Strategy. Through his workshops, he has trained more than 2500 bankers across mid and senior levels. He continues to learn and share his learnings with fellow bankers on the way.