The Startup Visionaries
Aspiring startup founders aim at creating a dent in the universe right from the get go. They are well within their rights to think so. After all motivation is the mother of innovation.
While the probability of generating exponential revenue growth during the initial startup years is non-zero, how feasible is it for entrepreneurs to row through sustainable growth territory to become a business giant? Or, to get acquired by one?
There is no singular formula to astounding success. However it is important for founders to have multiple options enroute to success.
They need control over their strategic decisions in every step of their entrepreneurial journey to leverage the fruition of their earlier decisions.
What is Optionality?
Optionality is the availability of more than one choice to make continuous progress combined with the degree of freedom to strategically choose from the options to stride along the path of success.
The higher the optionality or with more number of options easily available up your sleeves to succeed, the brighter are your opportunities for success.
Why Is Optionality Important?
Every business exists to generate profit. And more profit.
When you receive large capital investment for your startup you bargain a fairly good amount of optionality with your investors. They have a major say in your business affairs.
The early hefty funding received from investors and the desire to accelerate the ROI, encourage startups to make unrealistic assumptions about their product and put them on a trajectory that is too fast to fail.
At times, under pressure from investors, in their pursuit to generate exorbitant growth rates, many startups, not to mention it’s founders, lose track of their focus. Their business strategies become error-prone and the ROI fails to meet the expectations.
When things look no longer rosy the founders hand over the lever to control strategic business decisions to the investors.
More than 85% of startup founders see a larger pie of the returns going to investor’s pockets.Tweet
When founders run out of runway they are only left with their exit strategy giving the investors a prized win. Their founding vision takes a plunge into black hole.
Keep Your Optionality And Dream Alive
Rome was not built overnight. It takes time to build a great business that you have always wanted to. Keep all your options alive but not to that extent where you become indecisive.
Maintain a balance between extreme focus and optionality to strike the right chord at the right time.
Most importantly, find investors that believe in your vision. Let them mentor you and support you in realizing your dreams.