Posted by & filed under Banking, Collaboration, Entrepreneurship, Fintech, Innovation.

Looking back at 2019’s biggest fintech convention of the year.
Source: @money2020 Twitter

…And it’s a wrap! The European leg of Money 20/20 in Amsterdam was a wild success. The world’s largest marketplace for fintech ideas and innovations grew in maturity. Fintech scaleups seemed to outnumber startups. A sign that the fintech industry is growing and developing.

Read more »

Posted by & filed under Collaboration, Corporations, Entrepreneurship, General, Human Resources.

“Most big banks have the tools and advantages to push the boundaries of their existing business models. And they’re certainly motivated. What hampers their progress is uncertainty about how best to build on core strengths to create sustainable outcomes.”

McKinsey

Financial institutions know they need to change. They need to keep up with the digital growth. And they need to keep up with the evolving market that startups are disrupting. Their HR departments feel the urgency and know they need to drive the change. But what often remains blurry is what they need to do in reality to make things happen.

Yes, we need to steer this organization into the new direction – but what is the direction? What does the future of financial institutions look like in practise? And what does it require from people to actually get there?

Read more »

Posted by & filed under Entrepreneurship, Startups, Team.

To create something new and innovative you need to also be ready to fail and fail the right way. Failing has become such an essential part of the startup world that there is even a day for it.

So, contrary to the popular belief failing isn’t necessarily bad, it might be even good and necessary. But there are also the failures that should be avoided. The common mistakes that cause the whole startup to break down. Here are 5 of the common ones.

 

  1. Bad validation

Not all problems are worth solving. Some startups think they have the best idea ever. But they forget that is not enough: someone also has to want to buy it, or preferably: need to buy it. It is always easier to sell and get successful with products that solve a critical problem instead of ones that just ”could be fun”.

Still, many startups get so caught up in their brilliant solution that they forget that to get money from it someone needs to see it so valuable that they are willing to pay for it. Often those startups are also the ones that say everyone are their potential customers. If that’s you, stop now and think. The only thing everyone absolutely needs is air. Good luck capitalizing that.

Do you really solve a problem and is the problem critical enough for people to want to pay for your solution? Emphasis on the word ’pay’. Lots of people want free stuff, but that doesn’t put food on the table. Here’s a post that can help you out with validating.

 

 

  1. People need to know your product exists to be able to want it

Your product or service might really be amazing, and not just on paper. You have validated and found that you really do solve a real problem, and problem people are willing to pay to get solved. But that’s not enough.

There are still startups who think that as long as their product/service is good the customers will come automatically. Sometimes that is true: companies get new customers through referrals from their old customers. But you still need to get those first customers. They won’t find your product nor service if it’s hidden in your garage… You need to talk to people. Though of course, sales and marketing are not going to save you if your product is bad. But at the same time, it’s easy to sell a good product.

So, unlike many seem to believe, people won’t run to you if they don’t know about you. Most likely they don’t even know you exist! You need to tell them and you need to explain it simply enough.

 

  1. …and you need to tell them about it clearly enough

Sometimes this is the most difficult part. You know what you are doing, but your customers and investors don’t. And unless you are a coder and your customers are coders, using industry jargon is going to do more harm than good. You need to use the kind of language your customers use and what investors understand.

Don’t talk about how amazing the “UX” of your product is. Talk about the things your customers really care about, and do it in a language they understand and would use themselves. The way of speaking of for example a parent and a coder are very different…

And it’s the same thing for investors. Considering the amount of jargon startups want to use in their pitches, they must think investors are geniuses. How else would they know everything about every industry? Well, I have news for you: they don’t. When the investors don’t understand what you are saying, they automatically stop listening. And jargon usually does exactly that. And then you are wasting both of your time.

So, forget jargon and explain things as simply as possible. Pretty much like you were pitching to a child (no, you are not offending their intelligence by doing that ;)). In fact, if a child can understand you pitch, your pitch is probably going to be really good!

 

Great team ensures you will have great execution of your idea

 

  1. Wrong kind of team

As it has been said over and over again, it’s not the idea, but the execution. And successful execution is all dependent on the team. Jari talked earlier a bit about the importance of team on here, and how important it is to build your team well. But it is not just about having the necessary skills in your team, but how your team works as a whole.

It is surprising how often internal conflicts destroy the whole business. In those cases, the focus goes to drama and not building your success. Or it might be that your situation has changed and for example, the CEO you had at the beginning stages might not be the best person now. You need to hire well and know when changes in the team are needed.

Hire with care, nurture your team and the team environment and adjust when needed.

 

  1. Failing to fail early enough

At the beginning of this post, I pretty much called startups the masters of failing. I should have probably said the successful startups are masters of failing. There are still startups who do everything they can to avoid failing. While not giving up is good, you need to know when to say “this isn’t going to work”. Then you can pivot and start working on something that will work.

The earlier you realize the that the less time and money you are going to spend building something that is not going to work. Thus startups should remember that failing isn’t alway the end of the world, but something they can use to become a much better business.

And there you have it: 5 common mistakes startups make and destroy all their hard work. Remember these and you won’t be one of them! ;)

 

You might also be interested in: How to pitch to an investor to get funding?

 

Posted by & filed under Entrepreneurship, Startups, Team.

Having the right kind of team is one of the key features of a successful startup. Even more important than your idea (read this if that comes as a surprise). There were search engines before Google, social networks before Facebook and so on and so forth. We all know that. What made Facebook and Google be the successful ones was that they executed the idea better. That’s why sentences like ”Execution is king”, ” Ideas are good, but only execution matters” are heard all over the startup world.

Now think about it: what is the difference between good and bad execution? I.e. who are 100% responsible for making your brilliant idea into reality? Your team. It blows my mind when startup founders just hire their childhood best friends, cousins, someone they know who happens to need a job. Noble – yes. Useful – if you’re lucky…

Hiring someone you don’t know means spending hours and hours trying to get people to apply. And then spending much more time on looking through the applications, interviewing and still you can never know what kind of people they really end up being. You just have to take a leap of faith. Or you can just hire someone you know, or at least someone you trust knows. Easy, simple, done. So, hiring someone you know is understandable and even makes sense. But that’s where many startups go wrong. Here are what to look out for.

 

Danger point 1 – just hiring someone you know without thinking what they can really bring to your team – skills, experience, their network…

The problem is hiring someone just because you know them. That’s what many do and then notice the person doesn’t have the skills they need. Then you face the dilemma: should you fire your childhood friend to be able to hire someone your startup really needs or just stay quiet and not destroy your relationship with him or her. Startups just don’t have the money the keep hangarounds in their team. And sooner or later you will have to sack him/her or risk failing. Thus it is better to hire sensible right away.

Each and every member of your team needs to have the skills and/or experience you need in your team. And of course, fit into your group dynamics.

 

Danger point 2 – hiring someone who doesn’t match your team and/or way of working.

Some startups have the opposite problem. They get so charmed about someone’s skills or experience and don’t care about how that person will fit into their team. Those are the teams that will spend their days ripping each others hair out.

Now, you don’t have to be best friends with everyone, but too many startups fail because they spend their time fighting each other instead of working. A cohesive team is not only more pleasant to work in, but cohesive teams also get better results. That is why it is equally important to make sure the new hire also fits into your team.

Also, make sure your company’s working style fits with the person you will hire. For example, if that person would prefer to have steady working hours but your startup needs lots of flexibility. Or you would want employees to work at your office, but that person would prefer to work remotely, you might have to reconsider.

Again, think before you hire and you will save yourself from many headaches.

Team fighting instead of getting things done

 

Danger point 3 – team full of similar people

If your startup has 3 members who all are introverted coders who only want to code, no matter how amazing they are at coding, your startup won’t get far. Yes, your code will be brilliant, but that’s it. Let me repeat: THAT’S IT. Even if your business idea was to be a coding subcontractor, you would still need other kinds of people in your team. You need diversity and diversity in all areas.

 

Have the right skills in your team

You need a diverse group of skills, complementary skills that make executing your brilliant business idea possible. You all might be coders, but someone also needs to know how to sell, pitch, do marketing, accounting…. When you only have coders who are interested in coding, you end up with brilliant code. But like I said, that’s going to be it. That’s what they call hobbies. If you want to make money you need more than that.

I overheard a mentoring session in a hackathon of such team. The whole session was spent by the mentor asking who would use their product/idea and the team answering ”but the code is sooooo pretty, anyone. It’s just so so soooo pretty.” They were completely unaware that someone would actually need to also buy it, i.e. someone has to want the product. And that they were not even selling code, but something to make people’s lives better. The whole idea of ”thinking from your customers’ perspective” was completely alien to them. The team also spend the first minute (!) of their pitch explaining how they are uncomfortable pitching/selling, how bad they are at this, this and that…. Let’s just say it didn’t go too well.

You need the dreamers, the organizers, the doers, the specialists, the whole package that gets the work done. Think about it: if you all are dreams, all you get is dreams. If all of you are natural organizers all you end up doing is organizing each other and not doing the work.

The best results require different minds

You need people who have the diverse skills and working styles needed to make your idea into reality (and success!). But you also need diversity in experiences, in the minds you have in your teams. You need diversity of all kinds. Of skills, personalities, life experiences, cultures, genders, what have you. Studies say that by having more diverse minds working on a problem they are going to look at it more thoroughly. That is how you will take all the necessary things better into consideration and how you will create more innovative ideas.

So, while it is important to make sure your team is cohesive, you should avoid the trap of only hiring people who are similar to you. When you work with people who are different from you (from a different culture, education, sex, etc.), you will have to put more effort into working together, solving misunderstandings and so on. But also your results will be so much better. So so much better.

TL;DR: Make sure:

  1. you have all the needed skills and personalities in your team.
  2. your team dynamics work
  3. you have enough of different kinds of minds working together. That’s how you will reach the best results.

 

A post you might also find interesting: You need more than mentoring hookups

 

Posted by & filed under Accelerator, Entrepreneurship, Startups.

Sooner or later on your entrepreneurial journey, you will face the question whether you should go for an accelerator. And if, for which one.

Accelerators can really help you accelerate your growth (hence the name). But only if you find the right accelerator for you. And if you are ready for it. Just going with the most famous one or the one closest to you can do you more harm than good. The accelerator needs to fit your startup’s needs.

Here are a couple of things to take into consideration when looking for The One for you, or if you really should even go for one.

1. How committed are you?

If I had to choose just one word to describe accelerators it would be intense, both in good and bad.

During the accelerator, you are going to work hard, probably harder than ever before. Everything is accelerated. And what’s everything? Well, that depends on the accelerator (and you!). But things like learning, making right and wrong decisions, changing routes accordingly, reaching customers, pivoting, maybe even more than just once. In essence: a lot of things will happen and all of it will happen at the same time. Though only if you are there and putting in the effort. Accelerators accelerate, they don’t do the work for you. And intense results require intense work.

So, you need to figure out what is your commitment level, if you are ready for all that. Will you be able to put in your 100% and more during the months of the program? Or would something less intense work better for you instead?

Accelerator = hard work

 

Think about your life realistically.

Are you just testing the waters if your idea has any potential and want to still continue in your day job just in case? Then an accelerator that requires fewer hours might be the best option for you. Or do you have a baby coming, sickly parents to take care of, pet, hobby, anything that prevents you from giving your all during the accelerator?  Most likely you also need to relocate for the accelerator (unless you are super super majorly lucky and the best accelerator for your startup is right next door). Is that possible? Yes, some things may be worked out, but those kind of compromises always show.

For some accelerators, it is even a requirement to work full-time on your startup. That’s because they know how big of an effect it is going to have on your results. And not only does it show that you are committed it also proves you truly believe in your idea. If you don’t believe in your own idea enough to work on it full time, why should they?

So, think about your day to day life and be realistic about how committed you can and will be. If you put your mind into you will find the accelerator that is going to help you the most. AND can actually work with your life, even if it means joining an accelerator a bit later in your startup journey.

 

2. What kind of network do you want to build?

Accelerators are great at helping you grow your networks and be known where you need to be. But only if you choose an accelerator that makes it possible. Not all networks are made equal. If you go to an accelerator where you can grow a good-sized network, but of the wrong kind of contacts or in the wrong market, does it matter? No. You won’t really get anything out of it. At least when compared to if that network was filled with contacts that were actually relevant to your business.

Let’s say you are a fintech startup and big banks are your potential customers. Then a fintech accelerator that is done in collaboration with bank(s) is probably your best bet. But if you are a biotech startup, going to a bank accelerator will not the best choice for you. No matter how close it is to your home or how great the people behind accelerator are. Accelerator is great for you only if it helps achieve your goals.

 

So think: What is your industry? Are you a B2B or B2C startup. Where is your target market located? Who are the people, the influencers you need to reach? Can the accelerator give you direct contacts to your customers? Accelerators will not only help you create networks with your alumni but also with the key people in the industry, customers, investors, advisors and much more. That is why it is important to find the accelerator that matches your goals.

Ask yourself: which accelerator can connect you to the people and create the networks you need?

 

3. Your preferences & musts?

Every startup has different needs. After you have figured out your realistic level of commitment and what kind of networks you want to build, there are still many many things to consider. Things that are specific to your startup. Some of the key ones include:

Accelerator’s style:

What type of accelerator are you looking for? Do you want more hands on approach where you get help specifically for your startup? Or would you rather just hear tips from the ones who have already done it?

There are as many kinds of accelerators as there are accelerators. There really isn’t an official definition of an accelerator. That’s why the spectrum of different accelerators is also quite wide. When we talk about accelerators we mean intensive, time-limited coaching and business development programs that offer investments. Some accelerators offer investments, some don’t. Some accelerators emphasize building networks, some coaching, and more hands-on workshops. Figure out what would be most helpful for you.

Mentors & mentoring:

Different accelerators have different kind of people as their mentors. They even mean different things with the word mentor. Are the mentors they have relevant to you? Knowledgeable of your industry, issues you struggle with, do they have knowledge from your customers’ side?

And what does the accelerator mean by mentoring? Is the big name mentor going to give a lecture and a short Q&A or will he or she sit down with you to work on your startup? How important it is for you to have that one-on-one time with the mentors? What do you really want mentoring to be like?

After accelerator:

Do you want to get help from them also after the accelerator program itself ends? If you do it might be better to go to one that invests in the startups in its programs. That is because they probably want to make sure their investment is doing well and are much keener on helping you, their investment, also after the program. Or would you rather just get the learnings during the accelerator and not be bothered with keeping in touch with it? Also, what does it really mean get help after the accelerator ends? How much effort is the accelerator willing to put into helping you after the program?

Funding:

Do you need funding and how much? How much of your equity are you willing to give away? Do your numbers match with the accelerator’s? When thinking about the investment from the accelerator, you need to consider the overall package: for example, the coaching and other support in addition to the invested money.

Though remember that you should never do it just for the funding! It is not going to take you far, far from it. Though I am sure you are one of the smart ones and the thought didn’t even cross your mind ;)

 

4. Are you coachable?

I.e. are you ready to learn, accept others’ advice and in general, know you cannot know everything needed in this world. In short: your attitude.

If you already know everything, attending an accelerator might not be for you. I mean, accelerators are for learning, why would you go to one if you already know it all? You’re just going to waste your own and the accelerator people’s time. Though of course, if you do it to build a network then accelerator might still be worth your time (but are you worth the accelerator’s time, that’s a different story…).

 

Being coachable is also the very same thing investors are looking for. Nobody likes the know-it-alls that only want money, especially not investors.

TL;DR Do your research. Think what are your needs and what you can give, and apply to the the accelerator(s) that matches those. And remember: there is no one ‘best accelerator in the world’. It is different for everyone!

What are the ‘musts’ you are looking for in an accelerator? Share in the comments, we’d love to hear!

 

Related post: How to build the next startup unicorn?

 

Posted by & filed under Customers, Entrepreneurship, Marketing, Social Media, Startups.

They say social media is amazing for companies, especially startups. A must even. But in your experience, it’s just a waste of time. Usually, the reason is that you post the wrong kinds of posts, but also that you are on the completely wrong channels.

Here is a lesson that could not be simpler and even more obvious. But a lesson I want to share because, in practice, it seems to be nothing but obvious. Startups know they should be on social media, but they waste a lot of their time on wrong things. And surprise surprise they don’t get the results they want. It is about what they post, but many if not most startups get an even more basic step completely wrong. They don’t use the right social media channels, the channels that would really bring in the results. Meaning no matter how amazing posts you are putting out none of it matters if your customers don’t see them.

Only the channels where your customers are matter

What startups usually do is that after deciding they need to be in social media, they think which channels are hot and start creating accounts. The end result is they will have too many accounts and they don’t have time to do them well enough. And most likely they are wasting their precious time on channels that will bring them no results no matter how well they do on them.

The only channels that matter are the channels that bring you results. And usually, that means the channels your customers use. Like everything your startup does, also marketing and social media should all start from your customers. Let’s say you have a fashion brand and your customers are females in their 20s. Then Instagram is probably your best bet, probably also Facebook. Linkedin? Not so much. But if your customers are professional males in their 50s or 60s Linkedin (or nowadays also Facebook) is just the thing. And then Instagram, probably a complete waste of time.

So, creating great content is the number 1 thing that will make or break it whether you will get something out of your social media efforts. But if you are doing it all on wrong channels your effort is 100% waste of time.

How to find the right channels for your startups

Like I said earlier: be where your customers (and other important stakeholders) are. The best-case scenario would be that you know what those are for a fact. If you don’t, you need to start making educated guesses and change accordingly when you get more information. Also, just ask. You are talking to your customers and potential customers anyway, so why not ask about where they are active.

If you have no idea, you can start from thinking about your customers’ demographics. The Internet is full of information about who uses what social media channels. Then you can start using facts like your customers’ gender, age, income level, interests etc. help you make an educated guess. Here is one website to help you out.

 

Social media demographics age

 

These are just some of the most popular channels. …which is why it makes no sense for startups to try to be on all possible channels.

Demographic factors usually help you a lot, but don’t be blinded by them. Let’s say your target group is photographers, male and 35+ years old. Then just by looking at demographic factors alone, you wouldn’t go for Instagram. But that would be a grave mistake! What is Instagram? A photo sharing app. It’s filled with people interested in photography and pro photographers.

Also, remember not to focus only on the buyer, the one who actually makes the decision of buying. Think about the people who have an influence on that buying decision. A clear example is toys. An adult is the one who pays for the toys, but it’s kids who say ”I want that!!! Buy it!”. Then you should be active where the kids are, and of course, not completely neglect the parents either. Or if you are selling something to the government or bigger organizations. The decision makers are important, but so are the assistants who actually scour through the options and present them to the decision maker.

Be realistic about your resources and what even is possible

Think of your resources and what makes sense. Even if your customers use ’all’ social media channels, you probably shouldn’t be in all of them. Unless your startup is strongly tied to social media, you just won’t have time. That’s coming both from personal experience and seeing what happens with startups. It’s better to focus on the most useful channel(s) and do them well than to do poorly on many channels. Doing social media well does require time and effort, so don’t spread yourself too thin.

Another thing to consider is what even is possible for you. For example, let’s say your customers use a lot of Instagram and quite a lot of Twitter. Instagram would then be an obvious choice. But for some companies, it might be harder to create good content on that platform. If you have a fashion brand, it is easy to take good photos that create value, something that makes people want to follow you. If you do IT consulting, not so. Then it is a safer bet to focus on the number 2, Twitter. Though of course, if you can actually figure out how to do Instagram super well, you will reach your customers where they are AND where your competition isn’t.

In short:

  1. Only be on the channels where your customers are
  2. Don’t spread yourself too thin. Start only with the most important channel(s). You can always take over more later.
  3. Create value. Just pushing your products and services will not work.

And that’s it for today! Do you have any learning about choosing the right channels? What worked, what didnät?

 

You might also be interested in: How to talk to your customers and build better products?