FORBES – To de-risk a business from the beginning, entrepreneurs should focus on validating their business model, securing diverse funding sources, and building a resilient team. Validating the business model involves rigorous market research and testing to ensure product-market fit. Securing diverse funding, including venture capital and customer pre-sales, reduces financial dependency on a single source. Building a resilient team with diverse skills and a shared vision strengthens the company’s ability to navigate challenges. Implementing these strategies helps mitigate risks and sets a solid foundation for long-term success.
The landscaping company founder learned that business ownership is like a three-legged stool: personal, financial, and business. He realized the importance of aligning all three aspects after selling his first company and feeling lost. Now, he focuses on building a significant business that fits into his personal and financial plans, ensuring he’s ready for a future exit.
A 35-employee company owner discovered the need for decentralization during a month-long absence. Despite meeting business goals, the company culture changed without his daily influence. This realization prompted him to build teams and processes that ingrain the culture into the business, reducing dependence on his presence and preparing for a future exit.
1. Hiring Outside the Industry Box: Zappos, the online shoe retailer, took an unconventional approach by hiring customer service reps without prior experience in retail. Instead, they looked for empathy and passion in other fields, leading to standout service that outshone bigger competitors.
2. The Hidden Strength of Humility: When 37signals (now Basecamp) was competing with tech giants, they embraced a culture of humility, questioning every decision and avoiding the “know-it-all” trap. This openness to learning kept them agile and innovative, allowing them to thrive in a crowded market.
HBR – Sponsorship, or the tactical moves a leader makes on behalf of junior talent, is essential for advancement to senior leadership. This can be due to leaders being busy, not prioritizing sponsorship, or being drawn to sponsorees who are similar to them. To resolve this, many companies invest in “synthetic” sponsorship programs that formally assign sponsors to sponsorees. However, once the match is made, the parties need to build the relationship on their own. 4 strategies to help sponsorees maintain momentum in synthetic sponsorship matches:
Integrate Mentoring, Coaching, and Sponsorship: During the first, getting to know each other and establishing psychological safety before discussing career development issues.
Don’t Assume the Worst: Sponsorees should not worry about too much wasting sponsors’ time. Trust that taking meetings seriously and preparing accordingly benefits both sponsorees and the sponsors.
Utilize “Weak Contact”: Keep in touch with the sponsors by regularly sharing articles or podcasts, commenting on social posts, and sending holiday greetings. However, this should not replace substantive face-to-face interactions.
Find Shared Experiences: Engage in activities or meetings together to build mutual trust and understanding, helping alleviate the pressure to focus solely on the sponsorees’ development.
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