Running a real, in-motion startup is a thrilling and challenging experience. Unlike a conventional job, there is no ‘normal day’ with predictable tasks and schedules. Each day is filled with tackling the biggest issue at hand, whether it’s acquiring new customers, developing products, or keeping investors satisfied. With so much happening, it’s no wonder many founders struggle to maintain control of their startups.
Here are some common reasons why founders lose control:
Poor Leadership
Poor leadership is often the main reason founders lose control of their companies. Every organization, be it a startup or a sports team, needs someone to hold others accountable. It’s crucial for everyone to know that the buck stops with you. Startups require a person to enforce standards, monitor performance, and keep the company focused on its key tasks.
Inadequate Systems
Having strong systems in place is essential for the success of a startup. While leadership is crucial, having well-designed and maintained systems can help a company function efficiently. Without proper systems for essential tasks like payroll and sales follow-up, even the most talented leaders can struggle to keep the company on track.
No Organizational Philosophy
Founders can lose control if there is no clear company-wide agreement on the direction and operation of the organization. It’s crucial for everyone to be on the same page regarding the company’s core values, mission, and goals. Without a unified vision, partners may have conflicting ideas about the company’s future, leading to potential mistakes and oversights.
Ineffective Risk Management
Dealing with risks effectively is crucial for maintaining control of a startup. Anticipating and planning for potential risks, such as server crashes or losing key customers, can help a company stay afloat. Operating with risk in mind can prevent founders from losing control of their companies, whether through removal or market failure.
Clinging To An Unrealistic Idea
Determination is important, but founders must be willing to adapt and make necessary changes to their original ideas or business models. Consumer demand should always take priority over personal attachments to concepts that may not be working. Flexibility and willingness to pivot are key to maintaining control and steering the startup in the right direction.