A startup,, in the context of this discussion, is defined by Eric Ries of the Lean Startup movement as:
“A human institution designed to create new products and services under conditions of extreme uncertainty.”
It’s been almost three years since I joined the startup community, and almost two years [2011-2012] since my university pal @quincy_k decided to build a company from our idea. During this time, I’ve had the best experiences by getting my hands on practical knowledge. Learning has been a vital tool to where I am today.
The lessons below are both startup and personal lessons. Some may seem like ramblings, while others attempt to make clear points.
1. Finding the Right Skill for Your Startup is a Lifetime Search
Finding the right talent for your startup is one of the hardest challenges. The best people are hard to find, hard to keep, and are often self-made. Last year, I spent considerable time looking for a first-class salesperson or business manager for our startup, Wasamundi. We’ve met several interesting people, but haven’t yet found anyone who truly understands what we do and can adapt as a first-class salesperson in this business. The problems I noticed were:
- The kind of business.
- Generational “mundane” mentality: In our community, there is a defined path: You are born, you go to school, you get a job, you retire, and enjoy your pension. We are not taught to start something, so we lack the pre-knowledge and adaptability skills for this.
People live to survive poverty and rely on the financial security of a job. Finding the best talent requires finding the right passion to build a dream. I’ve resorted to continuing the search and have a solution that can only be tested, but I haven’t had the opportunity yet.
2.You Can’t Be Everything to Everybody at All Times: Say No, No, No as Much as You Can
The desire to satisfy everyone should be considered a sin. Over the years, I’ve said yes many times. I’ve also said no, such as refusing to sell Wasamundi, rejecting investments, and declining to integrate a new social network under the Wasamundi brand. However, in retrospect, I still said yes more often than I should have.
Committing to too many things can lead to paralysis by analysis. The work for one startup alone is overwhelming and requires your ultimate focus for at least 2-5 years.
3.Scaling Prematurely Will Kill You: Focus and Re-focus
If you don’t focus, your startup will fail. I mean the scaling of building many “products” rather than adding servers or investing in heavy technology. In the early days, especially for tech-led startups, there is a huge temptation to experiment with projects. These experiments can unknowingly become products, leading to maintenance issues and distractions from the main vision. This lack of focus comes with many bruises and requires time to recover, rethink, and re-strategize.
4.Avoid Side Projects: They Feed You and Kill You
An internet startup often struggles with capital. Before securing capital from friends, family, angels, or VCs, you need to validate your idea. However, in our community, people often lack an understanding of what software is, valuing physical products more. It took over two years for my closest family members to understand what I’m engaged in.
In the end, you need to bootstrap. Side projects come into play, which can be detrimental to the startup. Paul Graham’s essay, “How Not to Die”, supports this: “Distraction is fatal to startups.” This has caused us more pain and regret than anything else.
5.People Will Not Keep Their Promises: It Starts and Ends with You
Most promises and favors aren’t as genuine as you’d like them to be. Not relying on promises is the best way to manage. Remember, it’s not personal for others; it’s your company. The right people will respond when you need them, but most won’t. It’s your responsibility to keep pushing forward.
6.You Will Always Underestimate How Much It Costs to Deliver a Service or a Product
Always estimate higher than you think for budgets, timelines, and resources. If you have no experience, consult an advisor. Things always take more time and resources than expected.
7.A Startup Messed Up at Its Foundation Cannot Be Fixed
Peter Thiel’s Law of Startups states that the foundation of a startup is its team. If the team is flawed early on, it takes grace to turn it around. This often happens when a startup has more than two people in the early days, leading to chaos. One person needs to have the ultimate authority to hire and fire to prevent failure.
8,Always Think About Making Money, Because If You Don’t, You’ll Die
Internet companies are picking up speed in Africa, but the temptation is to go with a freemium model. For a startup to generate substantial advertising revenue, significant capital is required. Always think about how to generate revenue for your business to attract investors.
9.Growing Too Fast
In the early days of a startup, fast growth should be horizontal, indicating you’ve found a product-market fit. Vertical growth should follow once you have a solid customer base and can afford to hire the right personnel without burdening the startup.
Growing too fast vertically can lead to overspending and unsustainable operations.
10.You’ll Be Wrong Most of the Time: Try to Make the Right Decisions as Many Times as You Can
As a startup team member, you’ll often find your assumptions are incorrect. Recognizing and acting on mistakes is more important than being perfect. The more times you’re right, the faster the company grows.
A leader must sense when things are going wrong, when passions are dying, and when to strategize next. Find core people who are ready to risk everything through ups and downs.
Quotes:
“That which does not kill you makes you stronger.” – Friedrich Nietzsche
Footnotes:
- A startup here specifically refers to an internet/mobile company where programs and platforms are milestones. While every new business can be called a startup, Africans are learning how to run internet/mobile startups from companies like Google and Facebook. This culture is borrowed and not yet ingrained, but with time, it will develop.
- Learning is the biggest tool mankind has. It allows us to step outside the system and see from the outside. According to Malcolm Gladwell, it takes at least 10,000 hours of practice to master a skill.
- Refusing investment from someone who doesn’t understand your business and demands too much equity is often better. A Cameroonian investor’s perspective can differ greatly from an American investor’s.
- A visionary lies to himself, a liar only to others. – Friedrich Nietzsche
Credits:
Thanks to Julie Owono, Tita Leslie, and Brian T for re-reading this. Thanks to all the brilliant people we’ve worked with at Wasamundi. Everyone contributed as they could within their powers. And for all those who shall be joining, better days are ahead in our mission to help people discover and connect with local businesses.
