If you’ve ever been involved in sports, you’ve undoubtedly heard the importance of focusing on your core muscles. These muscles are the foundation upon which everything else is built. The same principle applies to startups. When creating something new, resources such as people, money, and time are often scarce. Trying to do everything well is a recipe for failure. Instead, identify and excel at one or two critical areas. Whether it's sales, specific software features, or a consulting specialty, focus is key.
Identifying Your Core Strengths
In the chaotic environment of a startup, prioritizing becomes essential. To determine your core strengths, ask yourself:
- What is the single most important factor for our success right now?
- Where do we generate the most revenue?
- Where do we spend the most resources?
Answering these questions will guide you toward the areas that require your undivided attention.
Create a Mind Map and Chart the Money
A practical tool I recommend is a mind map. This visual representation can help clarify the functional areas of your business and how they interconnect. Here’s how to do it:
- Draw Circles and Boxes: Represent different functional areas of your business with circles or boxes.
- Arrows to Show Flow: Use arrows to indicate how these areas interact and flow.
- Indicate Dollar Spend and Generation: Use red ink to show where money is spent and green ink to show where money is generated.
- Rate Spend and Generation: Rate each area from 1 (low) to 5 (high) for both spending and revenue generation.
This process helps identify where your resources are going and where your revenue is coming from, making it clear which areas are crucial for your business’s success.
Build Your Core Around Key Areas
Once you've mapped your business and charted your money, you’ll likely notice that most of your money is spent and generated in specific areas. These are your core areas and should be your primary focus. To build strength in these areas:
- In-House Talent: Consider making these areas staffed by in-house experts who are deeply invested in your company’s success.
- Vetted Outsourcers: If in-house staffing isn't feasible, ensure you use highly skilled and vetted outsourcers.
Deemphasize Everything Else
For areas that are not core to your business, consider:
- Outsourcing: These are ideal candidates for outsourcing to free up internal resources.
- Downgrading Internal Hiring: If you must keep them in-house, consider less expensive or part-time hires.
Map Your Business for Success
It may sound simple, but creating a mind map and charting your money against it is a straightforward yet powerful way to identify the “business muscles” you need to develop. By focusing on your core strengths and deemphasizing everything else, you can ensure your startup is built on a solid foundation, ready to grow and succeed. Enjoy your workout!