Truly Great
Overview
I use this frame for startups that are on the venture path or companies that are founder funded and working towards a first class exit.
This post’s genesis is the result of putting together a lightweight frame to consider “what” a great company or startup looks like. There are many different ways of “how” to achieve a great outcome, but that isn’t within the scope of this piece. For context, I use the term “startup” in relation to a new business with no revenue or limited revenue and “company” to refer to an established business with meaningful revenue.
A truly great startup is one that is building towards:
Founders focussed on the long term, with a clear vision and the ability to attract the right resources
Solving a significant problem or unmet need for a large enough group of customers, with the right timing, offering and approach for the market
A scalable business model with potential for a future moat
A clear strategy that is well considered and leverages the startup’s strengths
A team that is executing effectively and adapting quickly
A truly great company is one that is building towards:
Putting customers first
A great CEO and leadership team that look after shareholder interests
A true moat for the foreseeable future with an enduring strong business model
A dominant position in their market
Operating in a market with attractive attributes
Priorities
In this frame, the order of importance is usually:
Survival: enough cash, a functional team and business, a will to adapt and push through
Strategic choices: a deliberate focus on customers, products and building competitive strengths
Growth: scaling towards being truly great
Liquidity: optional, partial or full, depending on the situation