All businesses need to attract top talent. This is especially true for startups, as they have higher risks than most other businesses. Those risks exist for the startup and its employees.
A June 2022 TechCrunch article warned startup professionals about the high-risk nature of startups and that they should always have three months’ worth of savings in the bank since they can lose their jobs at any time.
The article further discusses the tremendous amount of VC cash flow into the seemingly never-ending crop of startups where the business basics weren’t in place and working optimally. It’s an exhilarating playground of chaos, but everyone should know the risks, especially your current employees and job candidates.
Have you recently launched a startup, wondering how to ensure that your business is more than a flash in the pan? I’d like to explore ways that you can take your startup to the top and keep it there by turning your business into a talent magnet.
What Experience Does It Take to Become a Startup Founder?
Do you have previous experience starting a company? Do you know what it takes to create and maintain a thriving startup?
Everyone from crypto builders to vertical farmers has a story of massive success to lesson-laden failures.
Let’s examine the process and steps a founder might take to launch a successful startup.
The Idea
Often, startup founders have developed an idea or product or work with a business partner who has done so, allowing them to take the lead on the business side of operations.
In either case, did the idea come from stumbling on a need that was missing in the marketplace? Was the idea born from intentional brainstorming about a certain market?
The standard process in coming up with an idea powerful enough to launch a startup looks something like this:
- Identify a problem, and come up with a solution that fills the needs of a group of target customers.
- Ask whether the idea you came up with exists in the market already to determine whether it is worth pursuing.
- Improve the product by adding a new feature or capability or changing its appearance.
- Discover a new way to use the product or service for the customer.
- Create a marketing and sales strategy that ensures you will reach your target audience to let them know about your product or service.
The Business Plan
Once a founder has an idea and solution, it’s time to develop a business plan that lays out the products or services and the startup’s goals. It’s important to note that a business plan is essential in getting financing, such as VC, for a startup.
The information included in a high-functioning business plan includes details regarding:
- The industry and industry outlook
- Operations
- Finances
- Growth strategies
- Market analysis
The detail that a startup founder goes into, especially laying out growth goals, talent needs, training, and coaching, can be vital to the company’s success in getting funding.
The Funding
Startup costs vary based on factors like the product or service, property lease, equipment acquisitions, and employee salaries. Founders can obtain funding from the following:
- Traditional bank loans
- Friends, family, and community business leaders
- Angel investors
- Venture capitalists
Becoming a Top Startup Leader — Developing a Talent Magnet Strategy
Do these steps sound familiar to you? Perhaps you don’t have any experience launching or growing a startup. If not, what are you doing to develop yourself to build a successful company that attracts star talent?
As you build your startup, you must consider strategies to attract the right employees who understand and commit to your vision and success. Are you actively headhunting or hoping you will find the best people by posting jobs and saying “we’re hiring” on your LinkedIn profile? If so, you’re missing opportunities. All this does is get people looking for a job to reach out—your story doesn’t necessarily resonate with them or inspire them to build something exciting with you and your team.
If you want the best, you need to headhunt, and your candidates need to know you’re actively doing this to engage with the best people.
I recommend implementing talent magnet building strategies that focus on speaking candidly with clients to:
- Clarify your needs and desires for a position, then gauge their response to determine their understanding and willingness to commit their talent to your startup.
- Let them know you want them to stick around to help and watch your startup grow, including providing training and coaching to facilitate their growth and ability to move into leadership positions.
Every aspect of your journey as a startup founder is crucial to its ultimate success. From the idea, business plan, and strong brand reputation to developing a robust recruitment strategy, it all helps your business become a talent magnet.
