Details

Geschrieben von Joel Peretz

Kategorie: Business

Veröffentlicht: 20. November 2024

Zugriffe: 5041

• Technology
• Information
• Startup

Exploring Collaboration and Startup Potential

Opening the Door for Joint Ventures and Future Growth Opportunities

One of the biggest challenges in transforming an idea into a functional system or product within a startup lies with the participants—often referred to as the team. Team members must be open about their motivations and future plans, especially as the startup approaches success or expansion. Transparency in these moments is crucial for maintaining trust and alignment.

Investors, in particular, scrutinize the team closely. They assess not only the individual strengths but also the collective resilience of the group—how well the team can navigate discussions on critical issues that could shape the company's future.

Another key challenge is trust. Disclosing either too much or too little about the idea can lead to misunderstandings and potentially erode confidence among stakeholders. Similarly, the effort and commitment from each team member play a decisive role. A startup often lacks the resources to afford expensive services, but it is precisely these investments—both in time and expertise—that can determine its success.

Navigating these complexities requires a deliberate approach. Engage potential collaborators personally, discuss perspectives and motivations openly, and explore the "what ifs"—the potential scenarios, both positive and negative. This preparation not only builds a solid foundation for the company but also reassures investors. They will inevitably ask the hard questions, seeking to understand the solidity of the team and the security of their investment.

It is, of course, a significant advantage if one of the founders has experience in the functional area. Such experience enables the avoidance of many potential difficulties and hazards upfront by identifying the right path early on, saving precious time. This allows the team to focus on progress without needing to document every step in detail, especially when time resources are scarce. Known challenges can be acknowledged and deferred for deeper analysis and discussion at a more appropriate moment.

Specialists and experienced professionals inherently possess the foundational knowledge to anticipate and address issues that will inevitably arise. The better the idea and the smoother its implementation, the sooner external individuals and companies may express interest in profiting from it. This interest could include leveraging parts of the startup's work for entirely different purposes. Similar to a chemical production process, where a stage can be interrupted to extract a side-product for other applications, external parties might seek to repurpose foundational elements of the startup for their own benefit.

At its core, the strength of a startup lies in the unity and resilience of its team. A cohesive and aligned team forms the backbone of the company’s success. Conversely, if this unity is lacking—as numerous examples have shown—the team risks fracturing. Such division can lead to transformations that alienate the original vision, ultimately causing investors to withdraw their support and leaving the company vulnerable to closure.

I experienced this once firsthand when I assisted, free of charge and on a voluntary basis, a company that had the potential to become a giant but ultimately failed due to the aforementioned negative influences.

At the start, there is always the vision and the idea. Without these, nothing can begin. While the idea originates in the mind, it should be put on paper—even if it is summarized in just ten to twenty sentences. This description must be clear, concise, and precise.

Additionally, there might be secondary ideas or potential directions the concept could expand into. For instance, if the idea involves building a platform, it should be specified whether this platform is standalone or if it could serve multiple purposes.

If investors are to be brought on board, a business plan becomes indispensable, as does a well-prepared presentation of the idea. The amount of detail disclosed should strike a balance: revealing enough to inspire confidence but not so much as to expose proprietary aspects prematurely. Since the idea largely resides in the founder’s mind, the presentation can be adjusted and enriched on the fly, depending on the stage and the audience.

In the planning phase, the main baseline must remain at the forefront. This is the core reason for establishing the startup—the primary goal. This goal should culminate in a tangible version of the product or platform. The key functionalities to be offered should be clearly specified and listed.

Additionally, the endpoint of this goal must be defined. If the objective is financial—for instance, to increase the company’s valuation and achieve an exit sale—this should be carefully calculated and justified. Why would an individual or company be willing to buy it for a specific sum? What revenue or other benefits would they gain? These questions must be addressed clearly and convincingly.

To explain it simply, as I understand it, the value of a company is primarily based on its capital and inventory—excluding physical assets like software not part of the initial capital. When investors come in, they typically acquire a larger share for a smaller investment, as the risks are higher at the early stages. As more investors join, the share each new investor receives becomes smaller, but their contribution is larger due to reduced risks and the increasing visibility of potential success. It's like taking a slice of a cake that's nearly finished baking.

Eventually, as the project becomes successful, it may not require additional investors because the business can fund itself. For example, by generating large-scale network traffic or through other monetization methods. At that point, there are likely many other options and strategies that I am not fully familiar with yet.

The distinct components of the implementation should be clearly identified—this is, after all, a fundamental step in defining the architecture’s concept. Additionally, ideas for branching off these components into separate side-products should be explored. The stages of development and their versions should also be documented, as this will form a critical part of the business plan.

Here’s how the process might look, based on logic, knowledge, and experience:

• Team Formation:
  The team members meet to get to know each other, understand their intentions, and align their goals.
  
  
• Initial Setup:
  A minimal business plan is drafted, and a collaborative backend platform is established to facilitate teamwork.
  
  
• Prototype Creation:
  The business plan is refined, and a minimal viable prototype is implemented.
  
  
• Implementation and Development:
  The project progresses through its implementation phase until the primary goal is achieved.
  
  
• Potential Exits and Iterations:
  Along the journey, one or multiple exits—whether final or extended—may take place. Any new ideas that emerge during this process can then follow the same structured approach.

Back to the idea: Sure, caution is necessary, but there's no way around it when transitioning from theory to implementation — it's essential to know with whom you're working. Everyone needs a certain level of security, but it must align with the stage of the process. Many entrepreneurs start alone until they reach a presentable level, at which point they call for others to join. However, bringing people on at that stage tends to be more expensive. The risks are lower, and the outcome is more secure.

Since I’ve also had an idea over the last few years, it can be discussed as part of the intention to promote cutting-edge technologies and contribute to the facilitation of systems with advanced automation.

When considering a startup, not only the vision and the idea are central—though they are the very beginning and the source of inspiration—but practical aspects will emerge immediately. Questions such as how to communicate securely, how to share and process documents, and who will book and manage server resources need answers. If it’s a cloud service, whose credit card will be used?

These considerations are not meant to discourage or dampen the excitement and motivation but to highlight the importance of careful planning right from the first step. And that first step is communication: talking things over, comparing ideas, and ensuring everything aligns.

If you want to be an entrepreneur, join forces with experts and heed their guidance. Otherwise, they might hesitate to let you lead, especially if you’re pushing into uncharted territory with risks that go beyond what is reasonable—risks they may have already encountered and learned from, particularly in professional IT or functional areas.

If you have an idea or are considering joining one, start communicating in a way that ensures all participants understand their roles and positions from the beginning. Without this clarity, the collaboration might fail. Alternatively, if you choose to start alone, you’ll need to take on the risks yourself and outsource critical skills where your expertise falls short. However, this approach can be more expensive and may expose your idea to theft or misuse if it isn’t protected by legal measures.

Details

Geschrieben von Joel Peretz

Kategorie: Business

Veröffentlicht: 30. Oktober 2024

Zugriffe: 5197

• Preface
• Information
• Business
• Work
• Startup

We Wait Until the Ground Freezes

Turning Tides: From Struggles to Strategic Opportunities

In stable and economically prosperous times, we often build groups based on somewhat superficial communication. Collaboration and cooperation are essential, and this is where group dynamics become the strongest. Interestingly, it's not always direct skills that determine the distribution of power within these groups. Instead, it’s often the ability to project confidence and openness that draws more attention and significance in the work environment. Some individuals, on the other hand, choose a more resilient and inconspicuous path, maintaining a low profile to avoid higher expectations or increased responsibilities. There are countless shades of gray between these extremes.

When these groups are companies, and the circumstances shift to a more challenging economic period, the dynamics change. Companies need to become highly efficient or adjust by either hiring more skilled resources or letting go of those who add little value. Often, both happen simultaneously. The least productive members or those perceived as a risk to stability are usually the first to be let go.

When facing a tough situation or when the tension between fight and flight is high, we can choose to "fly forward" and confront the challenge head-on. This typically happens when there are limited options, but we’re still compelled to act due to a specific reason. If freezing is an option, it might serve as a temporary solution until remaining still becomes impossible. At that point, we need to take a decisive step toward the impending threat or danger. Interestingly, when we finally make that move, it often seems like the most obvious thing to do. With the right confidence, what initially appeared as risky becomes far less daunting.

When there’s a lot at stake and freezing is no longer viable, taking that bold step forward often turns out to be the wisest choice.

Once upon a time, I was driving a car through the vast Romanian landscape along the Danube River, heading toward Constanța. It was winter, but the days were unusually warm, and the light rain falling on the thin layer of snow was making the ground on the flat fields beside the road muddy and slippery. I had to make a quick stop and turned the car to a halt, but ended up a meter or two too far off the road. Suddenly, the car got stuck in thick mud. Up until that point, the mud had been hidden beneath the melting snow, making it hard to see.

With no road service available like in Germany, I was left to find a way to pull the car back onto the road. The struggle was exhausting, especially since I didn’t have any tools or equipment to help. After an hour of trying, I had to admit to myself that the situation was quite unpleasant.

I had certainly faced worse situations in life. But this one puzzled me because I never took such roads without proper equipment. Yet, life has a way of throwing unexpected lessons your way. It was only a couple of days before New Year’s Eve, and a sense of desperation started to creep in. Normally, I’m the one to handle complicated or dangerous situations, but this time, I noticed the concerned expression on my girlfriend’s face. She was deeply immersed in her physics studies, always thinking analytically.

After a moment, I asked her if she had any ideas. She looked at me calmly and said, “We can just wait until night. The ground will freeze, and then we can simply drive the car out. Until then, we can stay inside, enjoy some music, and eat our sandwiches.”

Her words struck me. This was exactly what I usually do—pull myself out of a stressful situation, assess it calmly, and suddenly see new options.

In the economy, those of us who took the greatest risks—like freelancers and senior management—are now left exposed to those within companies who mostly kept a low profile. In challenging and turbulent times, these individuals often find themselves in safer, more stable positions. Perhaps there is a quiet sense of revenge, an attempt to reconcile a guilty conscience for having relied on the efforts of those who took the risks during prosperous times. Just maybe.

But after reading the numerous comments and subtle calls for help from skilled and experienced professionals, I’m coming to a conclusion: we have stayed in one place for too long, waiting for circumstances to improve. We can’t keep hoping that the night will come and the ground will freeze; we need to push forward. There’s no retreat now, as our path back is blocked by major events like the energy crisis, political turmoil, widespread fears, and those who capitalize on these fears. A generation that dismisses others simply because they are in need or have reached a certain age only adds to the complexity of this situation.

In the near future, I will outline several options and make a call to action. If no company is willing to take us, we will create one ourselves. By combining efforts between North America, Israel, and Germany, we can pool our skills and resources. My vision is inspired by a former colleague who successfully started a system based on ‘points’ earned for contributions, which were later converted into financial rewards or positions. The formal structure needs to be developed, and I’ll share more details on my homepage soon, including a link here.

In the meantime, if you’re a specialist or expert in marketing, recruitment, development, or management, and feel that your age might be a factor in frequent rejections or project cancellations, consider reaching out to me. We can connect via Zoom, Skype, Google Meet, MS Teams, Telegram, phone, or email. But first, let’s connect here on LinkedIn and continue exploring opportunities while keeping a fresh breeze in our sails with new ideas and creative solutions.