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At Marana, we engage with new and experienced business owners on a regular basis. Often, this means we’ll work with brand new startup teams and maintain those relationships years after the new business launches, struggles, finds its feet, and ultimately becomes established and successful. When we ask successful teams, years later, what warnings they would offer to new startups rising behind them, we tend to hear the same responses over and over. Here are a few of the areas these thriving teams suggest newer businesses focus on.
Ethics and integrity
These things may not seem like a top priority to new CEOs and founder teams, especially as they scramble to please investors and impress new clients. However, as the old saying goes: “If you always tell the truth, you don’t have to remember everything you’ve said.” A regular pattern of honesty simplifies your life and streamlines the path to business success, even if corner cutting seems like an easier option at the moment.
Plus, focusing on these core values will also put you in a better position to hire great talent that shares those values. Build a culture of integrity from day one and you’ll thank yourself later.
Cash flow and resource management
Profits are important, but for newer companies who have yet to establish firm footing and a host of enterprise clients, a steady cash flow can make or break the business. Work to shore up cash reserves so you can meet obligations and deal with downturns and emergencies.
Respecting your competition
No matter how well positioned or unique your business offerings may be, you’re not alone in the race…ever. In the internet era, it’s easier than ever before to start a new business (at least in terms of registering your company, making your services available, and finding backers through crowdsourcing). But that means it’s easier for everyone, not just you. Competition abounds, and it should be taken seriously. Never stop looking for ways to differentiate yourself — but don’t resort to name calling and blatantly negative campaigns. Your work should talk for you.
Regulatory issues
When it comes to shareholder reports, tax management, and data security, there’s no way to overemphasize the importance of regulatory compliance. In fact, non-compliance can lead to large fees that could massively impede your ability to grow your business.
Stay in control of the rules and regulations that apply to your enterprise, and stay ahead of gaps and weaknesses by conducting regular internal audits and examinations. HIPAA, the GDPR, and SOC 2 requirements may (and probably do) apply to your internal data controls, even if you aren’t directly involved in the healthcare industry. If you haven’t yet reviewed the standards and requirements for each of these three, or locked down your customer data in a secure platform, now is the time to start.
Understand what you don’t know
The sign of a good leader is that they know when to ask for help. As a CEO, you deal with a lot, but that doesn’t mean you’re an expert in everything. Bring in support when you need it, whether that’s for embarking on a new compliance journey or for taking a more proactive approach to your finances.
We’ve shared lots of regulatory tips on our blog, check it out for yourself.
