“Details matter, it is worth waiting to get it right.”
There is wisdom in knowing when to accelerate forward and when to operate a little restraint. After securing Series A funding, there is a temptation to charge full steam ahead; to treat it like a steroid injection and behave as if the cash will burn a hole in the business’ pocket.
It’s easy to understand why we might fall into this trap. Suddenly there are the means to implement long-awaited developments and many tech entrepreneurs are the sort of people who want it done now, right now, or yesterday even.
Patience is most definitely a virtue here. Change is a crucial component needed for true evolution, but it shouldn’t be forced.
Whether thinking about recruitment and salespeople, target audience and marketing activity, leads and prospects, or making operational changes, there are potential pitfalls of not taking action a step at a time, using the company’s natural momentum.
It’s important to stay grounded, consider each action carefully and do the leg-work. Sadly we’ve seen tech start-ups fall victim to their own success and undo their hard work by being too over-zealous after they’ve secured Series A funding.
For a breakdown of the most commonly made mistakes made by tech startups who have secured Series A funding, take a look at our latest eBook ‘7 Mistakes Tech Companies Make After Securing Series A Funding’
Hiring can be a significant trip hazard after securing Series A funding.
Maybe you’ve been fantasizing about what you can do once you have a bigger team in place? Or dreaming of the customers you’ll win with a team of high-achieving sales executives?
Once your business gets its essential cash injection, the temptation is to go into recruitment over-drive. Triple your sales team overnight and employ people who will relieve all the tasks unsuited to your current skills-base.Many tech start ups, at this point, don’t have the infrastructure or onboarding processes to make best use of a rapidly expanding team.
If you’re hiring before you’ve thoroughly understood your target audience, or are taking on a VP of Sales when two major clients make up 90% of revenue, you may need to rethink your approach. Recruitment is just one theme in a whole host of common mistakes made by tech startups when they secure Series A funding.
If this is applicable to your business, download our latest eBook ‘7 Mistakes Tech Companies Make After Securing Series A Funding’
Securing Series A funding is an indisputable cause for celebration. It’s a big win, a milestone, full of optimism and the potential for success.
However, there have been many tech entrepreneurs who tripped up while riding the wave of Series A funding. As with lots of big breaks in life, it’s easy to become over-inflated, believe the hype and make considerable mistakes. There are potential pitfalls that are easily overlooked when you’re flying high.
It’s vital to stay grounded and not get over zealous. Be composed, think things through and make changes gradually.
After watching this cycle unfold countless times, Sales for Startups has identified common errors made in the aftermath of securing significant funding.
Addressing topics like recruitment, market profiling, realism and perspective, marketing continuity and alternative planning, our eBook 7 Mistakes Tech Companies Make After Securing Series A Funding’ offers important practical considerations to future-proof your business and not fall victim to your own success.
Be prepared for the long haul. Success is not a destination, it’s a journey.