All The Money Is Made In The Details

The difference between a successful startup and a failed company is in the details.

Many founding teams look similar on paper. They have impressive educations, strong work histories, and a reasonable degree of passion. However, only some have the detailed advantages it takes to succeed.

Commitment

A founding team must be committed to the company beyond anything else in their lives. This includes a commitment to the other team members. The 1980 USA Hockey Team upset Russia to win gold at the Olympics due to their commitment to each other.

Belief

The founding team must believe they can succeed to the point where they are willing to risk their livelihood to prove it. Henry Ford took the money he and his wife were saving for a home to start a car company.

Purpose

Money is the weakest purpose and not enough to fuel continued effort when alternative means exist to acquire it. The founding team’s purpose must be based on something critical for the team to solve. Jimmy John Liautaud built Jimmy John’s restaurant into a 3 billion dollar company because his other option was joining the Army.

Procedure

The entire team must follow proven procedures for growing the company. This often means asking for help from those who have succeeded in that area. When Larry Ellison launched Oracle, he did not understand sales. Instead of guessing, he asked those in his network who were experts in the area and followed their procedure.