Serial tech entrepreneur David Hayes, CEO of WaveOptics, the designer and manufacturer of waveguides – an optical component used in augmented reality wearable devices – has founded and led several successful tech businesses over his career.
In this article, Hayes shares his six key reflections on life as an early stage startup:
- Cash – you will always need twice as much as you think.
Plan to spend more than you expect. There will always be costs that crop up that you were not expecting and that certainly were not budgeted for.
The danger is that you may put the business under unnecessary pressure as well as risk the focus moving away from what really matters – like developing your technology or delivering for customers.
- Time – it will always take three times longer.
As many smaller businesses rely on much bigger businesses to operate, whether as a supplier or a customer, you need to account for everything taking longer than you would think.
Just because you are a small business and can make decisions quickly, does not mean that others can move at startup speed.
It can be frustrating, but this is unlikely to change. The reality is, you will need to build additional time into your projects. This is as true for suppliers as it is for customers.
- Funding – it is the biggest distraction and always takes longer.
A critical part of startup life is securing funding, but it can be hugely time-consuming and diverts attention away from the day-to-day running of the business.
Limit the involvement of the wider team where possible so the day-to-day does not fall by the wayside. Focus on key potential investors who are not only serious about providing capital but also about investing in your long-term ambitions for the business.
- Hurdles – You don’t know what you don’t know.
It is how you deal with the challenges along the way that is paramount. Taking a step back and understanding the full picture is key.
Only then can you work with your team to find the best solution. 9/10 times it pays to slow down in order to speed up.
- Team – invest in the best team.
This is critical. Do not underestimate how important it is to have the right team around you. Build a team you trust with the right skill sets and attitude to make your business a success.
Having founded and led a number of businesses in my career, I have always employed people who are better at their roles than I am.
The way to grow a successful business is to have the right mix of talent in the team. What is the point if you can do it all yourself?
- Deals – some of the best are the ones that you don’t do.
Some of the toughest decisions I have had to make is to walk away from a negotiation that is just not right for the business.
It is hard to do as it can lead to uncertainty – the inevitable what if? – but in the end, it has always worked out for the best.