How to grow your startup in the pre-seed stage

Oftentimes, we provide you with advice on how to scale your product utilizing API tools and setup. Today, we would like to diverge a bit and have one of our team members—who happens to be an investor in a venture capital fund—give you a couple of tips on how to avoid the pitfalls of growing your business.

While some of you might argue that the pre-seed stage is all about getting out of the gates guns blazing, a little bit of structure and being aware of a couple things goes a long way. 

Here are a couple of pointers that could come in handy:

• Do not be afraid to iterate and pivot early on, fail fast, adjust, and do it all over again.
• There is a difference between having a technology and having a product—you can have a great technological idea, but if you don’t frame it and convey the message in a crystal-clear way from a business perspective, then you don’t have a sellable product. Clearly state what the problem and solution is, and come up with a compelling unique selling proposition.
• Do not fall in love with your product. You want your clients to do that. After all, they will be the ones paying for it.
• Choose your cofounders carefully and split the roles, duties, and responsibilities accordingly. Don’t forget to put it in writing; you’re in it for the long haul.
• The same goes for your investors. Look for the right chemistry and smart money. Someone who provides not just money but added value. Don’t sell a big portion of your startup equity early on.
• Set up good business KPIs and metrics, keep track of them, and steer your startup correspondingly.
• Identify the right markets and move fast. It is about getting a significant market share. And don’t forget that what works in one country does not have to automatically work elsewhere. Think big, think international.
• Again, move fast.
• Consult good lawyers before you sign a term sheet. This might save you a lot of trouble further down the road.
• Have your legal documents in order (term sheet, SHA, and others). Inbound investors will want to see them.
• Last but not least, collaborating with a reliable and experienced team, such as DX Heroes, can give you a significant boost.

All in all, don’t let anything stand in the way of your enthusiasm. That being said, be wary of a couple things and make sure you have someone who has your back. Don’t be afraid to fail, and enjoy the ride.

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