Startup Entrepreneurs Should Not Struggle With Structure
The three critical pillars every startup should know
I have seen lots of Startup Entrepreneurs across continents struggle with structuring their businesses. Lots of millennial entrepreneurs start their businesses with zero attention to structure because of the erroneous belief that it’s for big businesses. They’d rather hustle their way out. This is one critical pattern that’s responsible for startup failure across multiple industries. No one was thinking about structure and organization
Why should I really bother about structure when starting out?
I think I will respond to that by asking you to pause for a moment and think about your body and the way it is excellently structured from cells to tissues, organs, and systems. Each body organ understands it’s role within the body. Think about processes like respiration, reproduction, digestion, and excretion. It’s systematically arranged with no ambiguity. People get sick when there is disorganization in their body function. This invariably means that businesses get sick when disorganization sets in.
I understand how difficult it can be to stay organized when you’re extremely focused on chasing the numbers. The incredible thing here is that you can’t chase numbers with a disorganized mentality. So I have simplified this for startup entrepreneurs. Here are the three(3) critical pillars you must pay attention to when starting.
1. Process Pillar
This pillar is synonymous with ‘’operations’’. It is the activity workflow of your business. In order not to create any form of ambiguity here, you must build this particular pillar focusing on;
How you create value (This is the product creation process flow)
How you deploy value & capture value (This is the sales process flow)
Document these processes such that a 5-year old can drive your business operations. The process pillar puts your business in autopilot even in your absence.
2. People Pillar
People remain the greatest asset to any business. The highest form of capital is human capital. This pillar addresses the technicalities of your selection, engagement, and exit process. The success of your business depends on the quality of people driving the business. Here’s what to keep in mind when building this pillar:
- Hiring (How you select and attract people)
- Engagement and Development (How you engage and develop people)
- Reward (How you compensate people)
- Firing (How you exit people)
Your business is going to deeply revolve around people. You must pay close attention to this pillar
3. Performance Pillar
This is the third and final pillar you should build in your startup phase. Most startup entrepreneurs ore chasing the numbers with no system put in place to track the numbers. It’s one thing to generate income in your business, it’s another thing to know exactly how much you’ve generated. If you cannot track your business performance then you are most likely never going to scale. The performance pillar shows the current health status of your business. This knowledge helps you to make informed decisions. I know you’re probably thinking about some big data analytics stuff. You do not have to bother about that. You can start with a simple ‘’Excel sheet’’ tracker and improve on that as you go
There you have it. You can begin organizing what you’re currently building to increase your chances of productivity and scaling. Do you currently have a process, people, and performance pillar? If no, I think you can start building one.
To your business productivity,
The Strategist,Victor Onyekere
Africa’s Human Development & Productivity Specialist