Especially for young ventures and first-time entrepreneurs it is essential to get the basics right and have a common understanding of the fundamentals of entrepreneurship from the very beginning of the acceleration.
Therefore efficient acceleration models should bundle the most essential entrepreneurial basics in a concise KPI and teach/ measure them from the very beginning. Even if the entrepreneur is already seasoned and experienced it does not hurt to review the basics.
This KPI should be used to bundle the entrepreneurial basics for starting a business and ensure that the founders speak the basic language of entrepreneurship. This factor will support the venture by providing a clarity of purpose and the long-term goal.
What to focus on
For business basics the venture / founder has to
- outline its business idea with its product / service goals and
- explain/ clarify the main drivers behind its success.
This provides a first insight if the venture thought about the problem it aims to solve and how potential customers could benefit from it. Therefore this step clarifies the existential core of existence of the startup.
Startups that just want to develop an app/platform/product/service without a real problem-solving focus for the customer are likely not to experience any long-term success.
Especially first-time entrepreneurs demonstrate difficulties with differentiating between a nice-to-have product/service, a good-to-have product/service and must-have product/service.
Every venture that plans to become successful and scale quickly should aim at offering an product/service in the must-have section.
While startups in the first sector are prone to failing, startups in the the second and the third sector might gain quite some momentum and have a higher probability of becoming successful. Startups from the nice-to-have sector might either successfully pivot to other sectors or cease to exist in the long-term. Only a few startups may manage to survive in the nice-to-have sector by branding themselves as a luxury asset.
As soon as the startup outlined its business idea and clarified its main drivers behind the business it should develop a first analysis of the target market and highlight the difference to potential competitors with a basic competitor analysis.
At the same time the founders should be trained in basic accounting, if no experience exists with finance management and accounting tools.
So what does the business basic factor entail?
- Basic understanding of accounting tools (get financial understanding from the very beginning)
- Clarify purpose through a Mission Statement
- Clarify the long-term path with Vision
- Get an environmental overview with a basic competitor analysis and basic customer analysis
The business basics factor forms the basis for further acceleration as it will heavily influence the other acceleration factors later on.
At the end of this factor the venture should be able to provide a clear and concise point of differentiation and a conclusive Mission Statement, Vision, and demonstrate a basic knowledge about the competition and customers.