The beginning of a new year is time for resolutions for individuals and businesses alike. For startups this is a good time to both set goals and reevaluate practices and systems in order to analyze what is working and what is not. Therefore, it is a smart idea to follow a checklist for startups, covering resolutions for the upcoming year. Below are the items I recommend.
A Yearly Checklist for Startups Should Always Include Reflection
Below are the items on your checklist that you should review. Covering these will help you analyze what is working and what is not. In addition, it prompts you to look for areas that could improve and realize what has been worth your time, effort and capital.
1. Is your basic concept still a great idea?
Now is the time to revisit the core concept of your business. What problem are you solving currently? Is your solution an effective solution to the problem? Moreover, are the assumptions you made when you started the company still valid? Do you need to make some adjustments to the fundamental premises underlying your company? Has the definition of the problem changed? Secondly, has the definition of the solution changed? Finally, has the demand for the product changed?
2. Reassess your service providers as part of your yearly checklist for startups
Take a hard look at your service providers. For instance, your lawyer, accountant, HR provider, bank, insurance provider, etc. and critically rate the service they are providing to you. Are they available when you need them? Are they efficient in solving problems? Remember, don’t get so wed to service providers that you can’t make a change when you should.
3. Reassess your management team
Yet another review essential to include in a checklist for startups is evaluating your team. Perform a careful appraisal of your management team. Are they the right group of people to make your company successful? Perform reviews for each member, or consider doing cross reviews—having the team members review each other. See if you can find ways to improve your team’s effectiveness.
4. Assess your Board of Directors and governance practices
Take a hard look at your Board of Directors and your adherence to principles of governance. Is the board well composed? Do the members complement the weaknesses of management? Are the members working together well? Are you adhering to principles of good governance? Does the board really have the power to replace the CEO? If not, you could get stuck in a poor performance rut and not be able to get out of it. This is why your yearly checklist for startups needs to honestly analyze every aspect of the company.
5. Revisit your competitive analysis
Finally, I recommend reviewing Michael Porter’s book, Competitive Strategy. Have you followed his recipe for analyzing your competition? Are you satisfied with your competitive position in the marketplace? What could you do better to improve your competitive positioning?
Successful Startups Always Focus on Growth Through Improvement
An equally important step in your yearly checklist for startups is focusing on improvement in the coming year. Reflecting allows you to course correct, and planning assists in growth. Below are the items you should cover to enable that growth and improvement.
6. Find ways to gain a better understanding of your customers
Exactly why are they buying your product? Or, perhaps, exactly why are they not buying your product? What are their buying criteria and which vendors come closest to satisfying them? Have you done focus group studies of your customers to learn from them and improve both your product and your service offerings?
7. Looking for ways to gain traction in your market shouldn’t be skipped
If you have not yet launched your product, look for ways to do some kind of pre-launch or test pilot launch. Consider setting up some Beta sites. Try to find ways to get more engagement with customers, so you can get their feedback and demonstrate to investors that your product works, customers will buy it, and you are able to execute on your company’s plans.
8. Resolve to do a better job of forecasting: An integral resolution for any checklist for startups
Take a critical look at your current forecasting processes. Are you hitting your monthly forecast? Quarterly forecast? Semi-annual forecast? If not, how are you missing? Too high on sales? Too low on expenses? Figure out how you’re missing and what adjustments you need to make to improve your forecasting process as part of your yearly checklist for startups.
10. Sharpen your market analysis
Studies show that market understanding is one of the most important elements of a successful startup company. What are the sources of information about your markets? Are you getting the best possible market research? Should you be paying for additional market research? Are you conducting your own market research? How can you get additional data that might help you improve your marketing and sales strategies?
10. Assess the financial markets
In addition, now is the time to analyze the relevant financial markets. Whether you are raising capital or not, it’s always a good idea to know how the relevant financial markets are behaving. What’s happening with venture capital, angel investors, banks, and private equity firms in your space? Is there money for the taking? Or are the markets tight? 2023 was a difficult year for startups to raise capital. Create your own scenario for the financial markets in your industry in 2024. Document your assumptions. Will fundraising be difficult? Based on your assumptions, what is your best financing strategy?
In conclusion, all items on this yearly checklist for startups are equally important. Therefore, make a resolution to take the time to carefully cover them. Because doing this will help you move into 2024 and beyond with a solid plan, increasing your chances of not only receiving more funding, but greater success.
Are you seeking funding? Read about what investors want to see in your pitch deck here.
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