In my time I've seen two different ways in which startups usually choose to commit suicide or succeed.
First, I think there's a very essential dilemma faced by startups and that is the balance between technology development versus marketing. I've seen companies that invest
tremendous resources into development with very little into marketing and companies that invest tremendous resources into marketing and very little effort into the development of their technology beyond a certain initial stage. A proper and disciplined balance between the two is critical. I have witnessed numerous ways in which one side or the other of the balance becomes dominant in an organization—neither outcome is usually good, (though when all else fails it helps to have something to sell, i.e. technology). There are various reasons why one path or the other is taken in my experience and they usually relate to an organization's integrity of vision and the relationship between its leadership and its investors.
Second, I think that understanding a company's culture is critical to understanding its prospects for startup suicide. Typically, a very small company with a very hierarchical leadership structure can be very detrimental to its own growth and to righting wrongs when things have steered off course. A startup has to be flexible enough to allow for an organizational structure that encourages input from all channels. This is particularly true in times of crisis. Small companies with rigid hierarchical structures in crisis periods need to be wise enough open up. Easier said than done but that's the reality.
Facebook Blogger Plugin: Bloggerized by AllBlogTools.com Enhanced by MyBloggerTricks.com
