#2- On my reading list- 03 July 2020

Interesting stuff I'm reading today morning

How to decrease the odds that your startup fails

TL;DR- Most startups will fail; However, in this post, Mike Suster tells us how even though quality & innovation fuel the startup industry, the basic stepping stone to failure is the lack of planning. He explains how founders should focus on the basics, i.e. Revenue & Gross Margin (which he calls the quality of your Revenue, nifty). Selling something for $500 and earning $5 (1% gross margin) isn’t the same as selling $500 worth of software that earns a 90% gross margin! He prepares founders to ask themselves, and be able to answer- a bunch of questions that a VC would ask before signing a check! Founders, take note.

4 most common startup recruitment mistakes I’ve seen as a VC

TL;DR- Iskender Dirik is a German entrepreneur, VC, and tech exec, who explains why growing your team is the biggest challenge you’ll experience as a founder. Every startup employee is effectively a marketer for your business, and should be able to slip into the job smoothly. Why founders need to be clear and aligned on their hiring process and expectations in order to help potential employees feel at ease? How it is a lazy mindset to prioritize credentials over potential? And finally working with the wrong external hiring agency can spell doom for your recruitment process. If you are a founder looking to build your team, do read this!

The dumb idea paradox: Why great ideas often start out by sounding dumb?

TL;DR- Andrew Chen asks how can a dumb sounding idea have a group of highly engaged people doing it, and can it snowball into creating a huge counterintuitive traction? How many times have you felt a dumb idea gained traction, but a smart idea had none? He explains the role of users in shaping the traction in tech adoption- so the next time you see a dumb idea gaining traction, dig a little deeper until you figure out its secret sauce!

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