Can we get smarter together?
Pooling the right team can help avoid pitfalls brought by hyper-growth. And keep founders’ dreams alive.
🤏 Pressure: roughly 90% of startups fail, and poor product-market fit is to blame in 34% of these cases. But sometimes it is the intense pressure from investors that back founders into a corner.
🚩 Pitfalls: trying to grow on a set schedule can put an otherwise healthy business on thin ice: over-expansion, rushed hiring, poor customer adoption, customization quagmire, etc. Each of them can damage the business if not rectified promptly by the right operators.
💪 Experience: pattern recognition and experience matter to mitigate these issues. Founders who have failed previously have a 20% chance of success, compared with 18% for first time founders. When issues are recognized, they can be subsequently solved with the help of experienced collaborators, provided the business is given the necessary operating runway for implementation.
In short: every business is unique. Yet, experienced outside operators can discern known patterns that emerge when businesses stretch themselves too thin trying to achieve growth on a set schedule.
Structured growth equity is a viable approach to reignite the business and its original inspiration, with a blend of capital injection and operator-led value creation. This combination offers better risk-adjusted returns prospects, and makes everyone stronger together.