{"id":12172,"date":"2023-06-23T16:29:10","date_gmt":"2023-06-23T16:29:10","guid":{"rendered":"https:\/\/presspay.ng\/news\/?p=12172"},"modified":"2023-06-23T16:29:12","modified_gmt":"2023-06-23T16:29:12","slug":"how-to-become-an-overnight-success-with-your-startup","status":"publish","type":"post","link":"https:\/\/presspay.ng\/news\/how-to-become-an-overnight-success-with-your-startup\/","title":{"rendered":"How To Become an Overnight Success With Your Startup"},"content":{"rendered":"\n<p>How long does it take for a startup to achieve &#8220;overnight success&#8221; and what does it take to get there?<\/p>\n\n\n\n<p>Mistral AI just raised a record $113 million exactly one month after formation. This is going to go poorly. Maybe not for Mistral themselves, with a founding team of former Google and Meta folks, challenging OpenAI for the throne of Generative AI.&nbsp;<\/p>\n\n\n\n<p>The jury will be out on that one for a while, as they now have plenty of screw-up money to burn through. The damage will be done when the overnight success window of Generative AI slams shut.&nbsp;<\/p>\n\n\n\n<p>I&#8217;m concerned for:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The next 100 startups who raise obscene amounts of FOMO VC on &#8220;me too&#8221; ideas that are more pseudo-science than viable businesses.<\/li>\n\n\n\n<li>The next 1,000 startups who spend chunks of their time and money fitting the square peg of &#8220;AI&#8221; (my quotes) into the round hole of their business model.<\/li>\n\n\n\n<li>The next 10,000 founders who make painful and costly decisions for their startup in the name of chasing Mistral&#8217;s $135 million overnight success.<\/li>\n<\/ul>\n\n\n\n<p>It&#8217;s like a pyramid of failure built on a base of plaster.&nbsp;<\/p>\n\n\n\n<p>But don&#8217;t get me wrong. This isn&#8217;t about AI. \u2013 AI. is the real thing, and a big thing, and a serious thing. I&#8217;ve been working with Generative AI for almost 15 years, and it&#8217;s been good to me.&nbsp;<\/p>\n\n\n\n<p>I&#8217;m not worried about the AI angle. I&#8217;m worried about the overnight success bit.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Success is Boring<\/strong><\/h2>\n\n\n\n<p>A headline like Mistral&#8217;s $135 million windfall is a particularly tough windmill to tilt at.&nbsp;<\/p>\n\n\n\n<p>When a startup makes splashy headlines, seemingly coming out nowhere to raise a massive funding round or get acquired before you&#8217;ve even heard of them, what usually gets swept under the rug is the time, sweat, money, and lucky breaks that put them into that position.&nbsp;<\/p>\n\n\n\n<p>That stuff works against the headline clickbait, and rarely even makes the 10th paragraph of the story.<\/p>\n\n\n\n<p>For every Mistral that attracts a once-a-decade lightning strike, there were thousands of other lightning-rod startups before them who didn&#8217;t get struck, and there will be thousands after them chasing the smoke from that strike and left holding the bag when it clears.<\/p>\n\n\n\n<p>I know. &#8220;Shut the hell up, Joe. It&#8217;s $135 million. In a month. Go back to your rocking chair.&#8221;<\/p>\n\n\n\n<p>So I do. But you know what else is boring? Making your first sale.&nbsp;<\/p>\n\n\n\n<p>Look, I don&#8217;t know exactly how long it takes for a startup to become an overnight success, but it damn sure isn&#8217;t a month. Because there are four gates every startup has to pass through during the overnight success growth stage.&nbsp;<\/p>\n\n\n\n<p>Here they are.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Zero to One<\/strong><\/h2>\n\n\n\n<p>It all starts with a brilliant idea. Now, I can&#8217;t tell you whether or not your idea is brilliant, but I&nbsp;<a href=\"https:\/\/incafrica.com\/library\/joe-procopio-this-is-where-great-startup-ideas-come-from\">recently wrote an article that will help you figure it out for yourself.<\/a><\/p>\n\n\n\n<p>That said, having a killer idea isn&#8217;t a&nbsp;<em>guarantee<\/em>&nbsp;for success, it&#8217;s just a prerequisite. As I stated at the end of that article: None of my ideas for products or companies have come from a single point of inception, and that&#8217;s where a lot of new founders get tripped up.&nbsp;<\/p>\n\n\n\n<p>The conventional wisdom seems like you get an idea, you draft the plans, you hire the workers, you find the customers. That&#8217;s the derivative of every business school definition of starting up. And to some extent, it&#8217;s correct. But that&#8217;s like giving someone directions to a destination by only telling them that it&#8217;s 500 miles away.<\/p>\n\n\n\n<p>I mean, that&#8217;s accurate. It just isn&#8217;t helpful.<\/p>\n\n\n\n<p>So while an entrepreneur should be focused on the destination, they need to break down the journey or they&#8217;ll never get there, especially overnight. You can still do it fast, and that&#8217;s where your talent comes into play.&nbsp;<\/p>\n\n\n\n<p>The first step on that path is to go from zero to one. And if your original idea is indeed worthy, you&#8217;re going to need several more worthy ideas to get that idea off of paper and into concept through to reality. Your goal is a single sellable product or service, and eventually, your first sale.<\/p>\n\n\n\n<p>Every journey starts with a first step. That first step isn&#8217;t the brilliant idea or the cool product or the company formation. It&#8217;s the first paying customer. Don&#8217;t spend your inception time focused on a million customers, focus on your first. Learn everything you can from that.&nbsp;<\/p>\n\n\n\n<p>If that happens overnight, great, you&#8217;ve still got time.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>One to More<\/strong><\/h2>\n\n\n\n<p>This is graduation from the idea stage into the early stage. This isn&#8217;t about growth, it&#8217;s about viability.&nbsp;<\/p>\n\n\n\n<p>Once you&#8217;ve made your first sale, how do you do it over and over again?&nbsp;<\/p>\n\n\n\n<p>I used to say that a startup should land its first customer, learn from it, then land a second customer, learn from that, and keep taking baby steps until about 10 customers. But I understand that&#8217;s too slow and pragmatic, especially these days when we&#8217;re letting machines do a lot of the learning for us.<\/p>\n\n\n\n<p>So I&#8217;ve revised that strategy a bit. Once you learn all you can from selling to one customer, figure out how to sell to 10, or 100, or whatever number seems like a stepping stone that won&#8217;t knock over your operation.&nbsp;<\/p>\n\n\n\n<p>The problem here isn&#8217;t that the answer is particularly difficult. The problem is that there are too many ways to cheat in the rush to overnight success.<\/p>\n\n\n\n<p>One of them is raising a lot of money. Don&#8217;t fall for the conventional wisdom that your next step must be building the machine that can sell to millions of customers \u2013 a proposition that requires raising millions of dollars. Instead, your next step should be selling to multiple customers at once, reducing costs and gaining small economies of scale along the way.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>More to Many<\/strong><\/h2>\n\n\n\n<p>Once your startup can sell to multiple customers at once, whether through bulk sales, partnerships, automation, or a combination, you&#8217;ve entered the start of the growth stage.<\/p>\n\n\n\n<p>Now you need to capitalize. And that could mean raising actual capital, or it could mean using your talent, like I talked about earlier, to generate even more innovative ideas for getting from one multiple sale&nbsp;to&nbsp;<em>many<\/em>&nbsp;multiple sales.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Can you build on your automation in marketing, sales, fulfillment, and operations?<\/li>\n\n\n\n<li>Can you exploit greater economies of scale from what you learned in the early stage?<\/li>\n\n\n\n<li>Can you consistently grab more and more market share for lower customer acquisition costs (CAC)?<\/li>\n\n\n\n<li>Can you extend lifetime value (LTV), raise margins, and grow EBITDA while still growing revenue?<\/li>\n<\/ul>\n\n\n\n<p>Get here and you&#8217;re a legit growth company. This is usually the point where those large fundraises get announced. It doesn&#8217;t happen overnight but it could happen quickly.&nbsp;<\/p>\n\n\n\n<p>One thing is for sure, it rarely happens without concrete proof of traction, which you can provide by answering at least three of those four questions above &#8211; the last one can be optional but it&#8217;ll ding your valuation if you can&#8217;t prove it.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Many to Multitudes<\/strong><\/h2>\n\n\n\n<p>The late growth stage is about feeding armies of customers, repeatedly, and at a profit.<\/p>\n\n\n\n<p>It almost sounds biblical, you know, fish and loaves, but it&#8217;s basically evolving your startup into a well-oiled machine, engaging in a constant rinse-and-repeat of the previous step while managing growth and continuing to innovate to meet the needs of an ever-shifting market.&nbsp;<\/p>\n\n\n\n<p>This is the path to exit. This is your overnight success. I don&#8217;t know for sure, it&#8217;s my belief that evolution takes time. Survival of the fittest, natural selection, and all that.&nbsp;<\/p>\n\n\n\n<p>I can&#8217;t tell you how to get there or how long it will take, but I can tell you that every startup&#8217;s path is unique. You can&#8217;t copy someone else&#8217;s \u2013 whether that someone is Meta or Mistral \u2013 and expect the same results.&nbsp;<\/p>\n\n\n\n<p>You can do it overnight, just don&#8217;t be surprised if it takes 10 years or more.<\/p>\n\n\n\n<p>Source: incafrica.com<\/p>\n","protected":false},"excerpt":{"rendered":"<p>How long does it take for a startup to achieve &#8220;overnight success&#8221; and what does it take to get there?<\/p>\n","protected":false},"author":1,"featured_media":10925,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"colormag_page_container_layout":"default_layout","colormag_page_sidebar_layout":"default_layout","footnotes":""},"categories":[43],"tags":[],"class_list":["post-12172","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-entrepreneurship"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>How To Become an Overnight Success With Your Startup - 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