At Freigeist, we believe that the biggest value we bring to the table when we invest in a company is not our capital, but our 20+ years of experience in building up organizations. We only do very few deals a year, which allows us to work closely with our founders, especially in the first 12 - 18 months after the investment. As a seed stage investor, we have learned a lot about the common challenges that present themselves in the early days of building up a company and would like to share three of our key takeaways in this article.
Hiring the right people at the right time is an essential part of setting up a company for long-term success. Before receiving financial support from investors, most founding teams are on their own regarding all aspects of building a business - from product development to sales to marketing. To achieve sustainable growth, it is crucial to bring on board the right leaders to take on some of those areas, so that the founders can focus on their strengths and invest their time only where they can have a positive impact on the company’s future. Identifying the areas in which talent is needed to complement the founding team is a very important step that should not be neglected.
“To achieve sustainable growth, it is crucial to bring on board the right leaders to take on some of those areas, so that the founders can focus on their strengths and invest their time only where they can have a positive impact on the company’s future”
In order to get the right talent and the right investors and partners on board, you have to be able to clearly communicate and get people excited about your vision. Knowing your product and USPs well and creating a brand that makes people believe in your mission will open many doors for you, which is why you should invest the time to build up a company identity and define clear key messages. This will not only help you in fundraising and recruiting processes, but also in sales and partner management.
One final crucial advice on setting up your company for success from an early stage on would be to define milestones that match your current product-market-fit. Even if your vision might be to address a different market segment in the long-term, finding a niche to establish pilot projects and first successes can be an important step and worth a detour. Reflecting on the current state of your product and capabilities and setting realistic goals for the next 12 - 18 months is something that doesn’t come naturally when you’re chasing big dreams. It can definitely help you achieve them, though. An important part of this step is dialogue. Talking to industry experts and potential partners will help you identify the next steps and set the right milestones for your company. This will not only keep you and your team motivated, but also show investors that you have a realistic idea of what the future journey of your company will look like.
That being said, founding a company requires a lot of drive, and having a big goal to work towards will help you get through the harder times. When founding a company, you have to be both humble and bold at the same time. You have to know your strengths and acknowledge your weaknesses. You have to be independent in some areas and accept support in others. And you need a strong network of partners to support you and your mission.
