What is Start-ups Management
Start-ups Management is the process of finding new product ideas, managing their growth and managing the business of a start-up company. “Start-ups Management” usually involves tasks related to project management, marketing, IT integration, financial planning and accounting. Start-ups are the new trend in business. They provide a new direction in which investors can go to create a large amount of revenue for themselves. If your business plans to grow and prosper, you should learn about how start-ups operate.
A person will be able to know if their company is operating like a start-up or not by looking at the following:
1) Horizontal Management: Horizontal management is when there is no power within an organization and they share tasks equally among all workers. Start-ups often switch between this type of management and vertical management (see below). In a start-up, the workers are not respected. It is all about profits. This will be contrasted to vertical management where the workers are given more respect and are treated better, because the bottom-line is put in front of everything else.
2) No Recruitment Process: Start-ups do not have an extensive recruiting process to find new people for their organization. A startup will only recruit when they need to do so. They hire off of recommendations or referrals since they find it easier to trust someone they know vs finding someone who has never worked with them before.
3) Decisions: Start-ups never make the decision to hire someone until they feel that they will be useful to the company and will bring in revenue. If they do not feel this is true about a potential candidate, they will not go through with hiring them. This is why it takes so long for a startup to find the right people for their organization.
Start-ups raise capital in order to create new revenue and bring in more profit for shareholders. They may do this by:
1) Raising Capital Through Venture Capital: Venture capitalists invest in your company because you have the ability to sell your product or service at a higher rate than most other organizations can. Since start-ups are focused on the short term, the product or service they are focused on is often focused on bringing in money quickly.
Do’s and Don’ts of Start-ups
1) Don’t manage your employees like employees. Employees should be treated better than slaves.
2) Do treat your employees more like students. They will be more willing to learn and perform better when they feel appreciated for their work. Endorse them for their effort even if you do not agree with their decision making or ideas. If you respect them, they will respect you back.
3) Don’t build an organization based on the fact that you’ll be competing with other companies. Focus on making your company stronger by building something new and different.
4) Do focus on the short term. Organizations which take too long to develop often fail because it is difficult for management to keep up with all of the demands of the worker who makes their products or services world class quality today.
5) Do focus on revenue – your primary goal should always be to bring in as much money as possible.
6) Don’t allow your employees to micromanage you. Give your employees responsibilities, but do not trust them with making decisions for you.
7) Do get your customers to test your product or service before you start selling it to them. That way, you have a chance at finding problems early on so they can be fixed before the product is produced for customers.
8) Do focus on a niche market that will be easy to build a company around and that will help you compete with other companies within your niche market. You may choose a niche market that is too small, but if the potential profit is big enough, then going after this niche market might be worth it.
Start-ups need to pay attention to their core values in order to remain focused on what they believe is important. They should remember that they are in business for themselves, so they should prioritize what is most important for them before anything else. It is important to know what “start-ups management” entails so you do not find yourself in an unprofessional or risky position by choosing to manage a start up company without qualifications or experience. Fintalent can help provide both the needed qualification and experience for business managers seeking to grwow their Start ups through professional management. Fintalent’s pool of Expert Start Up Consultants can help business managers reach their growth targets.