Resources

The One Fool-Proof Way To Get Your Startup to Succeed

It’s a frightening thing when you find out that almost two-thirds of startups in the world never succeed.

The fear was real for Tom Eisenmann too. The Howard H. Stevenson Professor of Business Administration at the Harvard Business School and the Peter O. Crisp Faculty Chair of the Harvard Innovation Labs, Tom, published an article in the Harvard Business Review in mid-2021. He wanted to answer a single question.

What makes a winning business?

Is it the money or lack thereof? Is it the absence of the right market opportunity? Is it the aptitude and ability of the founder? Or is there some other invisible element that helps a select few companies succeed while resulting in failure for others?

After studying the stories of hundreds of startups and meeting many founders first-hand, Tom came to an answer. It seemed that while money and opportunities were important to business success, they weren’t the most important.

In truth, venture capitalists and investors prefer to put their faith in a capable founder rather than the brilliancy and profitability of the business idea. Specifically, most winning businesses are startups that have a founder who has the knowledge, experience, and the right support that can help them scale the difficult ladder to business success.

Fractional leadership – the smartest way to grow your business

A business can’t succeed on one person’s hard work alone. Your startup requires a vision that can help it withstand the test of time. Such vision and expertise can only affect change when someone has years of expertise in a field/industry. This is where fractional leadership comes in.

For the most part, many startup founders don’t have decades of experience in their industry. Even if they’ve worked in the industry before, they may not know how to be at the helm of a fast-growing company. Having the support, advice, and encouragement of qualified and experienced industry veterans can really help.

Fractional leadership is the process where startup founders choose an industry leader – who is often a C-suite executive or a veteran in the industry – as a mentor they can learn from as they grow their business. These C-suite executives include CEOs, CFOS, CTOs, members of the Board of Directors, venture capitalists, marketing gurus, etc. These are individuals who have quite literally “been there, done that”.

They’ll have experience with a similar business growth trajectory. Plus, they would have worked their way out of various startup challenges. This gives them tremendous business and life experience to share that a founder with a new startup can really benefit from.

How does collaborating with a C-suite mentor help?

The greatest benefit of founders collaborating with C-suite executives and business leaders is the compressed timeframe within which growth happens.

Fractional leaders will already be well-versed with the traps and treasures of their industry. This knowledge enables them to give a deeper and richer perspective to founders about how to build a business that lasts.

Instead of looking at their business from a narrow, myopic perspective, founders will be able to bullet-proof their companies against risks they may never even be aware of. This can actually be a relatively low cost way of running the business, rather than spending tremendous money to address risks and challenges that could have been avoided with the right support.

Risks aside, founders will also be able to identify hidden lucrative opportunities in places they never thought they’d find. Their business mentor’s maturity, creativity, and deep familiarity with their industry will offer founders a unique perspective they’d otherwise be devoid of.

Another advantage of founders collaborating with C-suite executives is the access to resources. Most industry leaders have rich professional connections both within and outside the industry. From helping you get access to the right bank loan terms to putting you in touch with qualified candidates for hire, they’ll be able to do a lot for you.

Plus, many fractional leaders can also function as temporary department heads and advisors, shaping your startup from within. They can advise you regarding multiple facets of your startup, including –

• Company strategy creation and goal planning.
• Internal workplace policies framing.
• Determining workplace ethics.
• Making accessibility-friendly structure.
• Digital transformation & technology capacity building.
• Hiring, training & compensation.
• Product portfolio building.
• Funding procurement.
• Financial management.
• PR and image management.
• Synergistic marketing and sales operations.
• Regulatory compliance.

You’ll find that you’ll spend lesser time feeling frustrated and worried about how to take things forward with your business. Instead, you’ll use your time well by putting your fractional leader’s advice into practice and watching your startup succeed.

Founder collaboration can benefit fractional leaders too

As a founder, you certainly get a lot of benefits from collaborating with fractional leaders. But what do these mentors and fractional leaders get in return for working with you?

For one, fractional leadership and mentorship can be a great way for C-suite executives to set the stage for their post-retirement careers. From retainer fees to getting equity in the company, these fractional leadership opportunities can be financially rewarding to mentors.

Mentoring a founder can also support the mentor’s desire to build a more flexible career and help them pick and choose companies they want as part of their legacy.

But payment and a flexible professional life are just a small part of the fractional mentor’s benefits. In a way, fractional leadership allows industry veterans and experts an opportunity to find the right people to pass on the torch to.

There are many C-suite executives who have been instrumental in the development of their respective industries. It is only natural for them to want to nurture the talent of the next generation, who will work greater wonders in the field. A great example is Steve Jobs, who was a mentor to Mark Zuckerberg, or Warren Buffet, who was instrumental to Bill Gates’ success.

Apart from this, there are many industry experts who’re just helpful. They enjoy providing business education and training to industry newcomers. Many love working with startup founders, and they are eager to share the tremendous knowledge they’ve built from years of working in the industry.

Building a community can be professionally rewarding and personally enriching

Ultimately, a collaboration between a startup founder and a C-suite executive can help foster a community of like-minded individuals who share common aspirations. This community can become a powerful think tank that fosters compelling ideas from people from diverse backgrounds. More importantly, the melding of individuals from such diverse backgrounds fosters business accountability and ethics, ensuring the world gets the best of what you have to offer.

A community that brings together the most brilliant minds with budding talents also ensures greater access to resources and knowledge for founders from less-privileged backgrounds. This can facilitate the creation of a business that can do immense good in the world.

Join Founders Collab and set yourself up for tremendous success

At Founders Collab, we are a membership-based community dedicated to fostering the startup culture. We invite startup founders, industry veterans, subject matter experts, and C-suite executives to join us as we embark on a bright future for small businesses everywhere.

Here, you’ll be able to meet many highly-reputed industry professionals who have decades of experience behind them. Our team at Founders Collab works with you to understand your business vision and then introduce you to an industry expert who can be your business mentor and fractional leader.

We strive to offer a transparent, accessible, and supportive space where you and your fractional leader can seamlessly collaborate to supercharge your startup’s growth. We create a safe, private and comfortable environment where you can discuss business, peg down mentorship contracts, and forge lifelong friendships.

If you’d like to know more about the Founders Collab, reach out to us today. We look forward to welcoming you into our diverse and spirited community.