What is the Entrepreneurial Operating System?

Gino Wickman developed the Entrepreneurial Operating System, a comprehensive business management system that helps entrepreneurs achieve more from their businesses. It’s a set of simple, practical tools and processes that align and synchronize all the pieces of a business to produce the desired results.

At its core, EOS focuses on six key components:

1. Vision: Clearly defining where your company is going and how it will get there.
2. People: Getting the right people in the right seats.
3. Data: Using a handful of numbers to provide absolute clarity on performance.
4. Issues: Identifying and solving problems quickly and permanently.
5. Process: Systematizing core processes to create consistency and scalability.
6. Traction: Instilling discipline and accountability throughout the organization.

For tech startups, EOS offers a structured approach to tackle common challenges such as rapid growth, evolving product roadmaps, and the need for agile decision-making. It provides a framework to align your team, clarify priorities, and maintain focus on your long-term vision while managing day-to-day operations.

Does the Entrepreneurial Operating System Work?

The short answer is yes, but like any system, its effectiveness depends on proper implementation and commitment. Let’s break down why EOS can be particularly beneficial for tech startups:

1. Clarity and Focus: In the tech world, it’s easy to get distracted by new technologies, market trends, or competitor moves. EOS helps you define your core focus and set clear, achievable goals. By implementing the Vision/Traction Organizer (V/TO), you create a roadmap that keeps everyone aligned and moving in the same direction.
2. Scalable Structure: As your startup grows, maintaining organizational clarity becomes challenging. EOS introduces the Accountability Chart, which clearly defines roles and responsibilities. This structure scales with your company, ensuring that as you add team members, everyone understands their place and purpose.
3. Data-Driven Decision Making: Tech startups thrive on data, and EOS reinforces this with its Scorecard tool. By identifying and tracking key metrics, you can make informed decisions quickly. This aligns well with the agile methodologies often used in tech development.
4. Effective Problem-Solving: The Issues Solving Track (IDS) process in EOS provides a straightforward method for identifying, discussing, and solving problems. This systematic approach can be invaluable when tackling technical challenges or strategic decisions.
5. Consistent Execution: Through its Meeting Pulse structure, EOS establishes a rhythm of regular, focused meetings. This ensures that important discussions happen consistently, progress is tracked, and the team remains aligned – crucial in the fast-paced tech startup environment.
6. Accountability and Traction: The Rocks system in EOS helps break down quarterly goals into actionable items, assigning clear ownership. This creates a culture of accountability, essential for driving progress in a startup setting.

To learn more about EOS, see if you qualify for membership to join Founders Network.

Real-World Impact on Tech Startups

Many tech startups have successfully implemented EOS and seen significant improvements. For instance, a biotech company reported 250% growth within 18 months of implementing EOS. 

A notable example comes from a Saas startup specializing in revenue cycle management software for treatment centers. After implementing EOS, this company experienced remarkable results across various aspects of their business.

Key outcomes reported by this startup include:

• Cultural Transformation: The company underwent a significant culture shift, with notable increases in employee engagement and satisfaction.
• Enhanced Product Development: Their development team delivered improved features, indicating better focus and execution in product innovation.
• Improved Customer Service: The startup saw a marked enhancement in their customer service quality, likely due to better alignment and processes across teams.
• Financial Clarity: They gained a better understanding of their finances and improved their financial tracking capabilities.
• Streamlined Onboarding: The company reported being better prepared for new hires, suggesting clearer role definitions and expectations. 
• Continuous Improvement: EOS became their daily operational framework, facilitating ongoing enhancements across the organization.

However, it’s important to note that EOS is not a magic solution. Its success depends on several factors:

1. Commitment from leadership: The entire leadership team must be on board and committed to the system.
2. Consistent application: EOS tools and processes need to be applied consistently over time to see results.
3. Adaptability: While EOS provides a framework, it should be adapted to fit your startup’s unique culture and needs.
4. Patience: Implementing EOS is a journey, and it may take 18-24 months to fully realize its benefits.

Implementing EOS in Your Tech Startup

Here are some steps to get started with EOS

1. Educate yourself: Read Traction by Gino Wickman to understand the EOS framework fully.
2. Assess your needs: Identify which areas of your business need the most improvement.
3. Start small: Begin with one or two EOS tools that address your most pressing issues.
4. Consider professional help: EOS Implementers can guide you through the process and ensure proper adoption.
5. Commit to the process: Be prepared for the long-term commitment required to see real results.

In conclusion, the Entrepreneurial Operating System can be a powerful tool for tech startup founders looking to bring structure, focus, and scalability to their organizations. While it requires dedication and consistent effort, the potential benefits in terms of clarity, alignment, and execution make it worth considering for any growing tech startup.

Remember, the goal of EOS is not just to implement a system, but to transform how you run your business. By providing a clear framework for vision, execution, and problem-solving, EOS can help your tech startup navigate the challenges of rapid growth and intense competition, setting you on a path to sustainable success.

To learn more about EOS, see if you qualify for membership to join Founders Network.

The world is constantly evolving, and successful entrepreneurs are those who evolve with it. If you’re an established entrepreneur but wonder if there’s room for improvement, these ten soft skills for entrepreneurs can pave the way for even greater success.

Ethical Leadership

For entrepreneurs, ethical leadership in 2024 is necessary and a gateway to success. We’ve entered an era of heightened awareness where the world values ethics and transparency. By integrating ethical practices, taking social responsibility, and encouraging diversity and inclusion, entrepreneurs can pave the way for a more prosperous and sustainable future.

Leaders who adopt and stick to good moral values and principles in fairness, honesty, integrity, justice, respect, and community are more likely to be accepted as trustworthy authority figures than those who selfishly overlook wrongdoings for their own benefit.

Critical Thinking

The ability to analyze, synthesize, and evaluate information effectively is crucial for entrepreneurs. They are bombarded with information and must make sound decisions based on it.

These decisions can range from launching a new business venture or hiring interns to determining annual budgets or pivoting entire business plans. Critical thinking allows you to make informed choices without letting emotions or past experiences cloud your judgment.

Teamwork and Communication

Anyone who’s built a successful business knows the power of collaboration and communication. The stereotype of the lone-wolf entrepreneur needs to be retired. Building strong teamwork skills is essential because you’ll need them as your company grows. Effective team leaders know how to delegate tasks appropriately, value diverse perspectives, and offer guidance and support to their teams.

Even with remote teams, technology can bridge the gap and unlock the power of collaboration. Consider using communication apps like Trello, Spike, Asana, or Time Doctor to facilitate seamless communication across the globe, manage projects and time effectively, and create shared notes.

Problem-Solving

Every founder encounters problems when running a business. . Great entrepreneurs are excellent problem-solvers who can navigate the inevitable challenges that arise. The key is to stay calm and collected, and avoid letting pressure overwhelm you. Break down large problems into smaller, more manageable tasks, and tackle them systematically. Entrepreneurs who can face and overcome challenges head-on are more likely to succeed and earn the respect of those around them.

Growth Mindset

Your mindset significantly impacts your life’s trajectory. A negative mindset fosters negativity, while a positive mindset unlocks possibilities. The same applies to entrepreneurs. Without a growth mindset, your potential for success will be limited. Cultivate a growth mindset by setting ambitious goals, pushing yourself beyond initial objectives, and continuously learning and improving. This approach will not only benefit you but also inspire those around you to adopt a similar mindset.

To learn more about soft skills for entrepreneurs, see if you qualify for membership to join Founders Network.

Self-Discipline

Self-discipline isn’t something you learn in a classroom or from a mentor; it requires a deep-seated desire for self-improvement. As an entrepreneur, you’re at the helm – there’s no one supervising or pushing you to perform. The onus is on you to be self-disciplined.

Start by focusing on time management. Track your schedule to understand your daily workflow. Technology can be a valuable tool here. Utilize Google calendars, Excel sheets, time management apps, or even a simple notebook to prioritize your tasks. While unexpected situations may arise, the effort to plan your schedule demonstrates accountability.

Creative Capacity

Although it’s widely underappreciated, creativity is a valuable and irreplaceable skill, especially for entrepreneurs. Creative thinking is the backbone of innovative ideas and pushes the team to think outside the box. This is why creative leaders also don’t avoid trying new solutions that others may avoid because they fear failure.

Curiosity is the catalyst for creativity, which facilitates finding new opportunities, learning from different experiences, and innovating groundbreaking ideas. So, entrepreneurs who foster an environment that encourages curiosity are opening a world of unique insights and perspectives.

Digital Literacy

Gone are the days when business owners could pawn their tech-related responsibilities to others. Being an entrepreneur in 2024 means digital literacy is not just a choice you have but a necessity if you want to establish yourself among other industry leaders. Similarly, since everything is online these days, you must also understand the impact of digital threats.

Data is also intertwined with technology and goes beyond just checking your financial statements. Data literacy involves a broad spectrum of information that is analyzed and interpreted for the purpose of better understanding, decision-making, and staying ahead of the competition.

Emotional Intelligence

Running a business is no small feat, and it’s natural to go through a rollercoaster of emotions when things get out of hand: frustration, anger, disappointment, and even sadness. However, a good entrepreneur will not let these emotions get the better; they’ll stay composed and prevent impulsive decisions.

 Similarly, being in touch with your emotions is an essential skill. Being task-oriented and successful is one thing, but being highly attuned to the needs of those around you makes you special. You will know how to empathize with your team and clients to positively drive them towards success and resolve any conflicts that come up.

Bonus Tip: Adaptability

As we discussed, keeping pace with a changing market is crucial. So when it comes to soft skills for entrepreneurs, adaptability is key. From employee departures to global disruptions or shifting partnerships, unforeseen challenges can arise at any stage. The key is to view these hurdles not as roadblocks, but as opportunities to refine your approach.

This is where technology can become your secret weapon. Techniques like web scraping with Python allow you to gather valuable data on competitors, market trends, and customer behavior. This timely and relevant information empowers you to adapt to market shifts more quickly. See challenges coming, identify opportunities you might have missed, and ultimately approach them with confidence.

Soft Skills for Entrepreneurs 

Developing soft skills is an investment in your entrepreneurial success. From fostering optimism to fostering open communication, these skills will empower you to navigate challenges, build a strong team, and ultimately achieve your business goals.

To learn more about soft skills for entrepreneurs, see if you qualify for membership to join Founders Network.

A recession can tighten consumer spending, make fundraising difficult, and force established companies to re-evaluate their budgets. However, with the right preparation, your startup can not only survive a recession but potentially emerge stronger.

This blog will equip you with essential strategies to recession-proof your startup. We’ll cover everything from building your financial runway to adapting your product offering and fostering a resilient team culture.

Cash is King: Extending Your Runway

In a healthy economy, growth is often the primary focus. But when a recession looms, the emphasis shifts to financial sustainability. The key is to extend your runway – the amount of time your current capital can sustain your business operations. Here’s how:

• Build a Cash Reserve: Aim to have enough cash saved to cover your operating expenses for at least 12 – 18 months. This buffer will provide breathing room during economic downturns.
• Scrutinize Your Burn Rate: Analyze your spending habits and identify areas for cost reduction. Prioritize essential expenses related to core operations and product development. Defer or eliminate non-critical expenditures.
• Explore Alternative Funding Options: Don’t solely rely on venture capital, which might become scarce during a recession. Consider options like lines of credit, government grants, or even bootstrapping (funding your startup with minimal outside investment).

Customer Focus: Prioritizing Value and Retention

While attracting new customers is crucial, retaining existing ones becomes paramount during a recession. Here’s how to strengthen your customer relationships:

• Double Down on Value Proposition: Ensure your product or service offers a clear and compelling value proposition, especially in a cost-conscious environment. Focus on how your offering helps customers save money, improve efficiency, or solve a critical problem.
• Enhanced Customer Service: Prioritize providing exceptional customer service. Build strong relationships with your customer base by actively listening to their needs and addressing their concerns promptly.
• Flexible Pricing Models: Consider offering flexible pricing options, such as tiered subscriptions or pay-as-you-go models. This can cater to customers with tighter budgets and make your product more accessible.

To learn more about how to prepare your startup for a recession, see if you qualify for membership to join Founders Network.

Adaptability: Refining Your Product for Changing Needs

Recessions can alter consumer behavior and industry trends. Be prepared to adapt your product or service to meet these evolving needs:

• Market Research and Customer Feedback: Conduct thorough market research to understand how the recession is impacting your target audience. Gather customer feedback to identify new pain points or opportunities.
• Innovation and Streamlining: Explore ways to innovate your product or service to address emerging needs. This might involve streamlining features, offering new functionalities, or expanding into adjacent markets.
• Data-Driven Decision Making: During uncertain times, rely on data to guide your decisions. Track key metrics to measure customer engagement, user behavior, and sales trends. Use these insights to refine your strategy and optimize your product offering.

Teamwork Makes the Dream Work: Building a Resilient Team Culture

Your team is your most valuable asset. Here’s how to foster resilience and maintain morale during challenging times:

• Open Communication: Foster a culture of open and transparent communication with your team. Keep them informed about the economic situation and your business strategy. Be honest about potential challenges but also emphasize your commitment to navigating them together.
• Focus on Professional Development: Invest in skill development and training opportunities for your employees. This equips them with the adaptability and skills needed to thrive in a changing market.
• Employee Appreciation: Recognize and appreciate your team’s contributions, especially during difficult times. Celebrate small wins and milestones to maintain morale and motivation. Consider alternative rewards and benefits beyond just salary increases.

A Time for Opportunity

A recession doesn’t have to be a death sentence for your startup. With a proactive approach and a focus on financial sustainability, customer-centricity, and team resilience, your startup can navigate the storm and emerge stronger. Remember, recessions can also present opportunities. While your competitors might be retrenching, you can gain market share by adapting your offering and demonstrating value to your customers.

By following these strategies, you’ll not only weather the storm but potentially position your startup for success in the long run. After all, innovation thrives during challenging times, and with the right preparation, your startup can be the one that disrupts and thrives during a recession.

To learn more about how to prepare your startup for a recession, see if you qualify for membership to join Founders Network.

The Unique Challenges of Hiring Marketers for a Startup

Hiring marketers for a startup presents a distinctive set of challenges that require careful consideration. Unlike established corporations, startups often operate with limited resources, making it essential to find marketers who can navigate ambiguity and wear multiple hats. In the dynamic startup environment, traditional roles may blur, requiring marketers to not only excel in their specialization but also contribute to broader business objectives. The ability to thrive in a fast-paced, ever-changing landscape becomes paramount, as startups demand a level of adaptability and agility that may not be as critical in more established settings.

Moreover, the challenge extends beyond skill sets to cultural fit. Startups typically have unique cultures shaped by innovation, risk-taking, and a strong sense of shared mission. Hiring marketers who align with these values is crucial for fostering a cohesive team and driving the startup’s vision forward. Striking the right balance between domain expertise, versatility, and cultural alignment is key to overcoming the distinctive challenges associated with hiring marketers for a startup, ensuring they not only contribute to immediate marketing needs but also play a pivotal role in the company’s growth and success.

Finding Marketers with The Same Passion

In the startup realm, passion is a driving force that propels individuals beyond their job descriptions. However, finding marketers who share the same level of passion for the product or service can be a challenge. Unlike established companies, startups might struggle to convey their mission in a way that resonates deeply with potential candidates. This misalignment in passion could hinder the marketer’s ability to communicate the brand effectively.

Standing out From the Rest of Startups Hiring for The Same Roles

The startup ecosystem is vibrant, attracting talent from various corners. As a result, the competition for skilled marketers is fierce. Startups often find themselves vying for attention against not only other startups but also larger, more financially robust companies that can offer attractive compensation packages. This makes standing out and attracting top-tier marketing talent a considerable challenge for startups with limited resources.

Navigating these challenges is no easy feat, but fear not—below are some invaluable tips to help you overcome these hurdles and hire the right marketer for your startup.

Signs that A Startup Is Ready to Hire a Marketer

Launching a startup involves wearing multiple hats, especially in the early stages. However, there comes a point when it becomes evident that the workload is too overwhelming for the founders to manage alone. Here are some signs that indicate your startup is ready to bring a dedicated marketer on board.

1. You Know What Marketing Channels Work

Before hiring a marketer, founders should have a clear understanding of the marketing channels that resonate with their audience. Identifying effective channels ensures that the marketer can hit the ground running, leveraging the platforms that yield the best results.

2. You Can’t Handle the Workload

Founders often start as the de facto marketers for their startups, but as the business grows, so does the marketing workload. If the demands of marketing are impeding other crucial aspects of running the business, it’s a clear indicator that it’s time to bring in a dedicated marketing professional.

Factors to Consider Before Hiring a Marketer for Your Startup Company

Marketing Generalist vs. Marketing Specialist

Choosing between a generalist and a specialist is a pivotal decision for startups. A generalist possesses a broad range of marketing skills, ideal for the dynamic and multifaceted nature of startups. On the other hand, a specialist brings deep expertise in a specific area, suitable for startups with a clear focus on a particular marketing function.

Types of Marketing Functions You Need Help With

The type of marketer you need will depend on the types of marketing functions you need help with. Identifying the specific functions where your startup needs support is crucial. Whether it’s product marketing, demand generation, content marketing, or marketing operations, understanding your requirements helps streamline the hiring process.

For example, according to Product Marketing Alliance, 45% of startups prioritize hiring a product marketer, while 30% focus on demand generation. Content marketers are favored by 15%, and 10% indicate marketing operations as their first area of focus.

Step-by-Step Guide to Hiring a Marketer for Your Startup

Bringing a marketer on board requires a systematic approach. Here’s a step-by-step guide to ensure a successful hiring process for your startup:

Define Your Needs: Clearly outline the role and responsibilities of the marketer you’re looking to hire.

Craft a Compelling Job Description: Highlight your startup’s unique culture, mission, and the exciting challenges the marketer will face.

Leverage Your Network: Reach out to your professional network, industry events, and online platforms to find potential candidates.

Evaluate Experience and Cultural Fit: Assess candidates not only for their skills but also for how well they align with your startup’s values and culture.

Technical Skills Assessment: If applicable, conduct practical assessments to gauge the candidate’s proficiency in relevant tools and platforms.

Transparent Communication: Be open about your startup’s current status, challenges, and future goals to ensure alignment with the candidate’s expectations.

What to Look for When Hiring a Marketer for Your Startup

In the dynamic startup landscape, certain characteristics are particularly valuable in a marketer. Here are key traits to consider when making your selection:

Founder Mentality and Entrepreneurial Spirit

A marketer with a founder’s mentality understands the importance of resourcefulness, adaptability, and a willingness to take risks—a perfect match for the startup environment.

Digitally Savvy

In the digital age, a marketing leader must be well-versed in leveraging online platforms, social media, and emerging technologies to drive effective marketing campaigns.

Gets Hands Dirty

Startups demand hands-on involvement. Look for a marketer willing to dive into the nitty-gritty and get their hands dirty. They should be able to execute strategies and contribute across various marketing functions.

Great Business & Marketing Knowledge

A solid understanding of both business and marketing is essential. This includes the ability to align marketing strategies with broader business objectives.

Strong Communicator

Effective communication is vital, both internally and externally. A great marketer can articulate the brand message clearly and inspire others with their passion.

Coachable

A willingness to learn and adapt is crucial in the ever-evolving world of marketing. Look for candidates who are open to feedback and continuously strive for improvement.

Great Writing Skills

Content remains a powerful tool in marketing campaigns. A marketer with excellent writing skills can create compelling and engaging content that resonates with the audience.

Works with Leverage

Efficiency is key for startups. A marketer who can maximize resources and deliver impactful results with minimal resources is a valuable asset.

Knows How to Prioritize

Startups often face limited resources and tight timelines. A marketer who can prioritize tasks effectively ensures that critical initiatives receive the attention they deserve.

Generalist vs. Specialist

Consider your startup’s needs—whether a versatile generalist or a specialized expert aligns better with your current goals and objectives.

Growth Mentality

Look for a candidate who embraces challenges and sees them as opportunities for growth. A growth mindset fosters innovation and resilience in the face of obstacles.

The Cost of Hiring a Marketer for A Startup

Understanding the financial implications of hiring a marketer is crucial for startups. While it’s an investment, it’s essential to manage your marketing budget wisely. Consider the long-term benefits and potential returns when evaluating the cost of bringing a marketer on board.

Early-stage startups might prefer handling small marketing projects internally to cultivate their unique voice and identity. Yet, as the startup expands, the growing daily marketing tasks may become too time-consuming for a solo management approach.

For those starting small, hiring a freelance digital marketer is a viable option. These independent consultants, with various specializations and marketing experience, provide valuable assistance on specific issues or projects at an affordable cost. Freelancer rates vary based on experience, skill set, and availability, with hourly rates typically ranging from $50 to $100, or a monthly retainer fee of $1,000 to $3,000.

If the marketing needs surpass the capacity of a single freelancer, engaging with a digital marketing agency becomes a consideration. Agencies offer access to multiple professionals with diverse specializations, allowing rapid scaling for urgent projects. Despite providing a stable working relationship, agencies often come with higher costs, with hourly rates ranging from $125 to $150, or even higher.

Alternatively, building in-house marketing teams provides greater reliability and connectivity with the organization but is time-consuming and expensive for early-stage startups. ZipRecruiter suggests an average salary of $80,000 per year for startup marketing managers, along with additional expenses for benefits, insurance, payroll taxes, hiring, onboarding, and training.

In conclusion, the cost of hiring a marketer for your startup is contingent on your business’s unique needs and growth stage. Whether opting for freelancers, agencies, or building an in-house team, carefully assess your requirements, marketing budget constraints, and long-term goals to make the most strategic decision for your startup’s marketing success.

FAQs About Hiring a Marketer for Your Startup

What Skills Should a Startup’s First Marketing Hire Possess?

The skills your first marketing hire should possess depend on the type of marketer you are hiring. However, a blend of strategic thinking, digital proficiency, creativity, and adaptability is generally desirable.

Is a Marketer the Most Important First Hire for a Startup?

While every role is crucial in a startup, a marketer plays a pivotal role in establishing and growing the brand. Their ability to connect with the target audience and drive awareness can significantly impact a startup’s success.

What Should I Expect a Marketing Person to Do for My Tech Startup When I Newly Hire Him?

A marketing professional for a tech startup should contribute to creating a strong brand presence, implementing effective digital marketing strategies, and driving user acquisition. They play a key role in translating technical features into compelling value propositions for the market.

At What Point Should a Startup Hire Their First Sales Person and First Marketing Person?

The timing depends on the startup’s growth stage and specific needs. Generally, once the founders can’t manage the workload effectively, it’s time to bring in dedicated professionals for sales and marketing.

How Do You Hire a Good VP of Marketing for a Startup When You Probably Can’t Afford One?

Consider hiring a seasoned marketing consultant or a mid-level marketing professional with growth potential. Look for someone with a track record of strategic leadership and a passion for scaling startups.

Conclusion: Navigating the Marketing Maze

In the exhilarating world of startups, hiring the right marketing leader can be a game-changer. By recognizing the unique challenges, understanding the signs of readiness, and following a strategic hiring process, founders can build a marketing team that propels their startup toward success.

Remember, the journey doesn’t end with hiring. It’s important to nurture a culture of innovation, continuous learning, and collaboration within your marketing teams, as your startup grows. 

Ready to elevate your startup’s marketing game? The Founder’s Network community provides invaluable insights and support for founders of every stage. Explore the benefits of the Founder’s Network community here.

Studies show that startups that leverage AI are twice as likely to succeed as those that don’t. Firstly, with 45% of AI-powered startups achieving a return on investment (ROI) of 200% or more. Additionally, AI personalization has resulted in a 30% increase in customer engagement for 55% of startups. Lastly, AI-targeted marketing has led to a 20% decrease in marketing costs for 40% of startups.

In this guide, we’ll detail why AI is a must for startups, how to get started, and real-world use cases that showcase the transformative power of this technology. Additionally, we’ll explore why startups must make AI a core part of their strategy.

Demystifying AI: A Foundational Understanding

Before delving into the practical applications of AI for startups, it’s crucial to establish a clear understanding of its core concepts and principles. AI includes a broad range of techniques that enable machines to simulate human intelligence, including learning, reasoning, and problem-solving.

Types of AI

AI can be broadly divided into three main types:

The AI Advantage for Startups

1. Competitive Edge

Startups often find themselves in highly competitive markets where innovation is the key to survival. Moreover, AI provides that elusive edge by automating repetitive tasks, freeing up human resources for strategic initiatives, and enabling the development of unique and advanced products or services.

2. Data-Driven Decision Making

In the information age, data is invaluable. Additionally, AI empowers startups to convert raw data into actionable insights. By leveraging predictive analytics, startups can anticipate market trends, understand customer behavior, and make informed decisions that resonate with their target audience.

3. Personalization

Customers today crave personalized experiences. Therefore, AI enables startups to tailor their products or services to individual preferences, leading to enhanced customer satisfaction and loyalty. From personalized recommendations to targeted marketing campaigns, AI opens up a realm of possibilities for creating unique and engaging customer experiences.

Getting Started with AI

1. Assessing Your Needs

Before diving into AI implementation, startups should assess their unique needs and challenges. Initially, identifying specific problems that AI can address is crucial. Whether it’s automating internal processes, optimizing customer interactions, or predicting market trends, a clear understanding of your objectives will guide the AI implementation strategy.

2. Building an AI-Ready Culture

Successful AI adoption goes beyond technology. Above all, it requires a cultural shift within the organization. Start by educating your team about the basics of AI and its potential impact. Encourage open communication, where team members can share ideas and concerns about integrating AI into daily operations.

3. Data Quality Matters

AI is only as good as the data it’s trained on. Therefore, startups must invest in collecting relevant and diverse datasets and ensure the quality of the data through rigorous cleaning processes. High-quality data is the foundation for training accurate and reliable AI models.

Strategies for AI Implementation

1. Start Small

Embarking on an AI journey can be overwhelming. Therefore, startups are advised to initiate pilot projects to test the waters. These smaller-scale projects provide valuable insights into the feasibility and effectiveness of AI solutions. The iterative development process allows startups to learn and refine their AI strategy continuously.

2. Collaborate with AI Experts

AI is a complex field, and startups may not have the in-house expertise needed for custom development. Consider hiring AI talent or collaborating with specialized companies. Networking within the AI community can also open doors to valuable insights and potential partnerships.

3. Cloud-Based AI Services

For startups with budget constraints, leveraging cloud-based AI services is a strategic move. Platforms like Amazon AWS, Microsoft Azure, and Google Cloud offer pre-built AI models and infrastructure, allowing startups to access cutting-edge technology without significant upfront costs.

4. Custom Development for Tailored Solutions

While cloud-based services provide convenience, some startups may require custom AI solutions tailored to their specific needs. This approach demands more resources and expertise but offers the advantage of a solution finely tuned to the startup’s unique requirements.

To learn more about AI for startups, see if you qualify for membership to join Founders Network.

AI Use Cases for Startups

1. Customer Service Enhancement

Implementing AI-driven chatbots can revolutionize customer service. These chatbots handle routine queries, providing instant responses and freeing up human agents for more complex issues. Personalized recommendations based on AI algorithms can also enhance the overall customer experience.

2. Marketing and Sales Optimization

AI plays a pivotal role in marketing and sales by providing predictive analytics to forecast customer behavior and trends. Lead scoring, powered by AI, allows startups to prioritize leads based on their likelihood to convert, optimizing the sales process for maximum efficiency.

3. Operations and Efficiency Improvements

AI-driven automation can streamline internal workflows, reducing manual efforts and minimizing errors. In the realm of supply chain management, startups can leverage AI to predict demand, optimize inventory, and ensure a seamless and efficient operation.

4. Innovations in Product Development

Predictive maintenance, enabled by AI, forecasts when equipment requires attention, minimizing downtime and maximizing efficiency. Additionally, AI can offer design assistance by providing recommendations and improvements, accelerating the product development process.

Overcoming Challenges in AI Adoption

Unquestionably, the benefits of AI are clear. Nevertheless, no journey is without challenges. Ethical considerations, data security, and cost concerns are roadblocks that must be addressed.

1. Ethical Considerations

As with any powerful technology, AI comes with ethical considerations. For example, startup leaders must be mindful of bias in AI algorithms and work to ensure fairness and transparency. Communicating openly about how AI is used and the data it relies on builds trust with users and stakeholders.

2. Data Security and Privacy

With great data comes great responsibility. AI often requires the use of vast quanities of data. Therefore, startups must comply with data protection regulations and implement robust security measures to protect sensitive information. For example, this includes having encryption and secure storage. Similarly, implementing robust access controls and regular security audits are essential components of a comprehensive data security strategy.

3. Cost Considerations

While the benefits of AI are substantial, startups must carefully weigh the costs of implementation against potential benefits. This includes not only the initial investment but also ongoing expenses related to maintenance, training, and upgrades.

The Future of AI for Startups

1. AI and Sustainability

The intersection of AI and sustainability is a promising frontier. Startups can contribute to environmental goals by developing AI solutions that prioritize sustainability. Green computing, focusing on energy-efficient AI algorithms and infrastructure, is an emerging trend with the potential to shape the future.

2. Integration with IoT

The synergy between AI and the Internet of Things (IoT) continues to evolve. For example, AI enhances the capabilities of smart devices, enabling real-time analytics and insights. The combination of AI and IoT opens new avenues for startups to create innovative solutions that capitalize on connected devices.

3. Advancements in Natural Language Processing (NLP)

As NLP technology advances, startups can expect more natural and context-aware interactions with machines. Conversational AI, with improved language translation capabilities, will redefine how humans and machines communicate, opening up new possibilities for startups in various industries.

How Will Your Startup Harness the Transformative Power of AI?

From gaining a competitive edge to optimizing operations and redefining customer experiences, AI is a transformative force that should not be overlooked. By embracing a strategic and thoughtful approach to AI adoption, startups can navigate the challenges and unlock the full potential of this revolutionary technology, propelling themselves into a future of innovation and growth.

To learn more about AI for startups, see if you qualify for membership to join Founders Network.

To learn more about startup security, click here to watch Matt Mason’s webinar.

For many startups, the ability to close deals hinges on security. According to a recent report by Vanta, more than half of startups are asked to prove their security measures by prospective customers. And securing funds from investors often depends on having security measures in place as well. 

However, despite its importance, Vanta’s survey found that 20 percent of startups have no security roadmap.  

Vanta is an automated security and compliance platform. Their recent survey included 500 startups in SaaS, healthcare, media, government, and education. According to the report, 75 percent of respondents think they should improve their security. And 43 percent said security and compliance were blockers in getting their startup up and running.

The results aren’t surprising to Vanta’s Ryan Ward. He understands the important role security has in building and growing a startup and says security measures should be baked into the foundation of any business.

On November 9, Ryan will lead a Founders Network webinar where he’ll detail the importance of security for startups. He’ll also share tips for ensuring your startup has a strong security foundation that enables you to grow. 

The webinar will cover:

• Why baking in a foundation of security sooner rather than later is critical for attracting investors, moving upmarket, and protecting your brand
• When startups should achieve SOC 2 compliance and how compliance automation can save you up to 400 hours of work and 85% of costs
• What steps startups can take now to establish strong security practices and reduce the overall workload for achieving and maintaining compliance

SOC 2 for Startups

In the Vanta survey, 52 percent of respondents said compliance certification was one of their top motivations for maintaining security. Among the most important security audits is SOC 2 which assesses and verifies a startup’s adherence to rigorous security and privacy standards for protecting customer data.

For startups, SOC 2 compliance is essential for building trust with customers and partners. It demonstrates that the company takes data security and privacy seriously, which is especially crucial when handling sensitive customer information. Achieving SOC 2 compliance can be a competitive advantage. It reassures potential clients that the startup has implemented robust controls to protect their data. Additionally, SOC 2 compliance can be a requirement for doing business with larger enterprises and organizations. It can also open up new opportunities for startups in various industries.

Despite the necessity, achieving SOC 2 compliance can be challenging. For this reason, Matt sometimes recommends startups delay undergoing a SOC2 audit, but he says they should still be working to put security measures in place.

“If you want to unlock revenue and move into enterprise, SOC 2 is a requirement. But you should delay your SOC 2 as long as you can because it’s an audit and is a lot of work,” Matt says. “That doesn’t mean that you should delay putting the foundations and principles in place that lay the groundwork for you to be able to get there.”

The Startup Security Journey

While SOC 2 is vital for startups, Matt emphasizes that it’s not the only thing startups should be focused on. He says achieving SOC 2 compliance is a good starting point. However, it’s not always enough to ensure your startup is protected. He also recommends startups focus on vulnerability management, penetration testing, and more to prevent security catastrophes like data breaches. 

“Do you know what the top 10 data breaches in the last five years all have in common? Every single one of those companies has a SOC 2 or ISO 27001 certification in place,” Matt says. “Getting your compliance standard in place doesn’t actually necessarily mean that you are more or less secure. We’re trying to change the conversation from being about SOC 2 to the entire security journey.”

Vanta’s Security Solution

Vanta specializes in providing tools and services to help businesses with security and compliance. They offer a platform that helps organizations manage and monitor their security and compliance efforts, particularly in the context of software development and cloud infrastructure. Vanta’s platform includes features such as automated security assessments, compliance monitoring, and reporting.

“One of the biggest pieces of feedback that we get from founders once they sign up with Vanta, is that they wish they would have had Vanta in place beforehand. Because they have to go back and redo a bunch of work that they’ve already done,” Matt says. “The irony of that is that one of the biggest reasons why founders don’t move forward with Vanta is because it’s not a priority for them. The same founders who are saying, hey, it’s not a hard requirement, are then coming back once it’s a hard requirement. And they’re having this aha moment of like, ‘I wish I would have had the software in place to guide me as I was building out the product, because now I have to go back and redo it.’ And that is the biggest waste of time.”

To learn more about startup security, click here to watch Ryan Ward’s webinar.

“Go for the moon. So long as that moon shot doesn’t kill you if you miss it,” says GroundCloud Founder David Leland. “Don’t ever count yourself out because you’re small.”

GroundCloud is a cloud-based provider of final-mile carrier solutions and road safety compliance tools, founded in 2016. Headquartered in Minneapolis, Minnesota, the startup didn’t fit the traditional Silicon Valley mold. But thanks to a thoughtfully acquired and nurtured team and a commitment to customer service, the company was acquired in February for $138 million.

“I’m a product of the Midwest and the tech space has always been very traditionally a Silicon Valley thing. You can’t let that mindset limit you,” David says. “A lot of entrepreneurs, the ones that succeed, it’s because they keep going and doing whatever it takes.”

David will share his startup journey at fnSummit 2023, Founders Network’s annual conference. The three-day event gives startup founders the opportunity to learn from other tech founders in the startup ecosystem, build deep relationships with investors, and uncover solutions to the challenges they’re facing. The annual event provides the perfect setting for off the record discussion, reflection, and networking.

In his fnSummit 2023 keynote, David will share his tips for startup scaling and how he found the right opportunities and people to scale to success.

A product that sells itself

GroundCloud stands at the forefront of final-mile logistics automation, seamlessly integrating operations, safety, and compliance within a unified platform. Final-mile carriers use the platform to seamlessly receive customer delivery orders, strategically plan and execute routes in alignment with those orders, oversee driver safety and performance through training and monitoring, efficiently manage assets and resources, and thoroughly analyze the operational effectiveness of their enterprises. What sets GroundCloud apart is its incorporation of video telematics, offering precise detection and verification of driving events, coupled with proactive coaching solutions meticulously designed to enhance overall safety standards.

“As an engineer, I always knew that you could build the best tech platform ever, but if people can’t use it successfully, it’s worthless. With GroundCloud we were able to develop a product that earned an incredible reputation with our customers. One way to scale is that if you satisfy your customers to such a degree, you don’t need to invest a lot in marketing and sales. Your customers will do the best selling for you.”

Prioritizing customer service

David attributes GroundCloud’s success not only to their product, but also to how they’ve handled customer service. In the logistics industry every second counts. However, some vendors in the logistics sector aren’t always quick to respond to customer needs, causing costly delays and setbacks. David saw this as an opportunity to set his company apart. 

“We really were able to win the hearts and minds and loyalties of our customers with customer service,” David says. “If someone has a problem with GroundCloud, they know that we’re going to answer the phone immediately and we’re going to be responsive to getting the problem solved. You don’t have to be perfect, but if you’re responsive and you can prove to your customers that you care, that’s the thing that’s going to win their hearts and get them telling others, ‘you should check these people out.’”

Commitment to team

When looking back at what enabled GroundCloud to scale successfully, David is quick to point to the team he had around him. According to one report, 23% of startups fail because of an inadequate team.

David says he looked for people he could learn from who would fill in his own skills gaps. In addition to hiring the right people, he says he implemented a competitive compensation and benefits program that ensured he was able to retain the top talent. 

“Make sure you’re hiring the right people that compliment you, that fill in the blanks for what skills you don’t have.  I come from an engineering background and I’m sort of the stereotypical visionary/dreamer/ eternal optimist. I recognized that my skills in terms of board governance and those details of contracts, I’m not good at that.  So, you know, I hired the perfect person that is that,” David says. “When you get the right team together that works well together and can solve problems together, you can basically point the team at almost any different market opportunity and have a much higher likelihood of success.”

To learn more about DJS Antibodies’ $255 million acquisition, click here to watch the full video of David Llewellyn’s global keynote.

In recent years, the field of biotechnology has witnessed a remarkable surge in scientific and technological breakthroughs, driving progress across healthcare, agriculture, and environmental sustainability. Within this dynamic landscape, innovative biotech startups have emerged as pivotal players, catalyzing transformative developments.

DJS Antibodies is one such trailblazing biotechnology company, dedicated to forging the future of antibody therapeutics. Spearheading this endeavor is David Llewellyn, the company’s managing director and co-founder, whose mission is to engineer antibodies combating chronic inflammatory diseases.

The culmination of their efforts reached a significant milestone in October 2022 when DJS Antibodies was acquired by AbbVie for a staggering $255 million. This strategic partnership promises to bolster research capabilities and fortify AbbVie’s immunology portfolio.

On November 16, David will detail his journey with DJS Antibodies in a global keynote for Founders Network. During the event, he’ll share how his passion for exploring medical advancements led him to establish a cutting-edge biotech startup worth millions.

David will also cover: 

• Creative strategies for funding a business in the idea phase
• Practical tips for how to accomplish more with less capital
• Insights into how to close an M&A deal 
• How to identify who will help and hinder you during your startup journey

Driven By Science

David is a native of Australia who grew up in a small town a few hours’ drive from Sydney. He moved to the United Kingdom in 2010 with the goal of pursuing a Ph.D. in medical science focusing on vaccines and immunology. David completed a Ph.D. at the University of Oxford’s Jenner Institute where he worked to develop vaccines and research malaria.

During his studies, he met another student, Dr. Joe Illingworth, who shared his passion. While exploring the idea of a career in academia, David and his future co-founder Joe stumbled upon a pitch competition that sparked a new idea in their minds.

“We put in an application – not based on any data – but based on our idea for how we could use our immunology knowledge to make antibody drugs,” says David.

To the duo’s surprise, they made it to the finals of the competition. The dream at the end of the road was a £100,000 prize that would allow them to explore the potential of their idea. When the award ceremony commenced, the pair learned that their idea would fall short of the grand prize.

The time spent at the competition, however, was not without importance. A pharmaceutical company caught wind of their idea and decided to fund their concept.

“We didn’t win the prize. But we did get some support from a pharmaceutical company who said, ‘Hey we’ll give you a little bit of money to test this crazy idea.’ That was really the start,” shares David. 

With £75,000 under their belt, they got to work to test their hypothesis.

Building a Biotech Startup

The stringency of the biotech market is one that would test many. A typical founding investment for a biotech startup generally sits at $5 million or more. The startup costs are high and the industry itself requires a high level of rigor in order to be successful.

“The kind of model you might see with a software startup where costs are low because all you need is a computer and a desk – and either pay yourself or not – doesn’t really happen in biotech. This is because you have to experiment in a lab with physical things that are super expensive,” says David. “The whole journey of DJS Antibodies was pretty atypical because we did follow more of a software model where we had really low capital and cash. We used secondhand equipment, went to garage sales, and did a lot of crazy things to get the pieces of kit we needed.”

It took 18 months from the date that David and Joe landed their first £75,000 until they reached their proof of concept. The next step was to look for investors.

“We went out to the venture capital community and angel investors. We heard a lot a lot of thanks, but no thanks” says David. “Eventually we got a small investment of under a million pounds from a fund based in Oxford, UK, that had just raised a big fund to invest in biotech in the area.”

David applied to government and innovation grants that landed them close to £2 million in additional grant funding between late 2016 through to end of 2020.

“And at the end of 2020, we were a four-person team with a pre-series A round of 6 million pounds,” says David.

The DJS team grew to 12 members as they approached 2021 and finally felt a spike in their momentum. In October of 2022, they were ready to sell. They landed a $255 million deal with the pharmaceutical research and development company AbbVie.

Today, David is the managing director of DJS. He continues to pursue his passion of medical and therapeutic research.

Advice For Founders

If you ask David, he is honest to say that he never intended to become a biotech startup founder. His mission was always to use his expertise in the medical science space to explore and create something meaningful.

Despite this, the graduation of David into the role of a founder taught him many lessons he hadn’t initially set out to learn.

The first lesson David shares is the idea of exploring more than one pathway to achieve what you set out to accomplish.

“You can do more than you expect with not very much. Try to be practical about costs. When the first person quotes you $50,000, and you don’t have $50,000, think: How can I still do it? Thrifty problem-solving always will get you further,” says David.

The second piece he shares is that no one is going to fight for a founder harder than the founder themself. David encourages founders to be smart when it comes to working with investors and managing their equity. He recommends founders focus on retaining ownership of a big piece of their pie to avoid getting diluted.

His last piece of advice? The harder you work, the luckier you get. While the work is important, it’s hard to succeed without encountering a little luck.

To learn more about DJS Antibodies’ $255 million acquisition, click here to watch the full video of David Llewellyn’s global keynote.

To learn more about how Björn Goß built Europe’s leading mobile wallet, click here to watch the global keynote.

Björn Goß came into entrepreneurship as many do – with an idea ready to disrupt the way customers do business.

The year was 2011 and Björn had just finished his bachelor’s degree at the University of Mannheim in Germany. He and his friend David Handlos were exploring what the next chapter of their life might look like and spitballing ideas for their own venture.

“David’s girlfriend had the problem of carrying around 20 different plastic cards which was pretty clunky. All people were talking about in relation to mobile wallets were payments. We said ‘Well actually it should be way beyond pure payments and focus on the whole shopping journey including loyalty cards, coupons, gift cards, mobile payments and more,’” says Björn.

It was then that the early vision for Stocard – an app that allows users to declutter their wallets by organizing all their loyalty cards into one central location – was created.

Fast forward 12 years and 70 million users and Björn’s startup has become Europe’s leading mobile wallet. The company was acquired in a €140 million deal by Klarna in 2021.

In a global keynote for Founders Network on January 16, Björn detailed the story of how he built a successful fintech company and his tips for finding product-market fit.

His keynote covered:

• How to find your product market fit
• Strategies for scaling internationally
• Methods to use to build a successful advertising model
• Scaling to 70 million users and exiting a company

Taking A Leap of Faith

In 2011 Björn moved to London where he earned his master’s degree. The following year, he started working at McKinsey & Company as a consultant. However, that position turned out to be short lived. 

In a turn of events, during the same months he was at McKinsey, the Stocard App – his side hustle – skyrocketed from zero to 50,000 users. He quit his coveted McKinsey gig three months in to pursue the growth of his app. The first order of business was to continue to grow the app’s user base while aiming to catch the eye of early investors.

“Talking with VC firms was challenging at first. They understood ordering a taxi through an app since they rode a lot of taxis themselves  But when you talked about shopping with them, they were like, ‘Who the heck cares about saving 10% on groceries,’” shares Björn.

By 2012 Stocard had taken over the news. The app boasted a user base of half a million and the concept soon became convincing for a few early funders.

“We raised $850,000 in our seed round. And then we built a small team and continued growing,” shares Björn.

Follow Your Users’ Lead

As the Stocard team grew its user base, they noticed an opportunity in their user retention rates. Initially, less than one-third of users returned after their first month of use. While this was trending well by industry standards, the team wanted to do better.

Over the course of the following year, the team of around 10 people devoted all of their attention to achieving product-market fit right. They started by understanding the difference between users who returned and those who didn’t. Following a deepening of their customer understanding and developing new ways to engage customers, the team increased retention to over 50 percent.

Stocard’s momentum grew.

“We further increased the retention to 70%, but also grew from 1 million to 2 million..5 million all the way up to 70 million in 2021,” says Björn. 

Next, in 2013 the team moved into monetization and started to talk to retailers directly about what they want and how they see the world. They then built an advertising solution to meet the market. 

Ultimately, the team’s dedication to understanding both customer and partner insights enabled them to build one of Europe’s most successful apps.

Follow Your Intuition

The success of Stocard taught Björn several lessons about what it takes to be an entrepreneur. However, the biggest lesson was about the value of having the right startup team.

“My lesson to share is a very boring one. My advice for other founders is to remember that the team is always more important than the individual,” shares Björn. “And if you have a toxic person in the team that is maybe a great individual contributor, you should probably act and you should act very quickly and let the person go as fast as you can.”

To learn more about how Björn Goß built Europe’s leading mobile wallet, click here to watch the global keynote.

To learn growth hacking tips for startups, click here to watch Mehrad Yaghmai’s webinar.

Mehrad Yaghmai is a systems thinker. His career started when he moved to Dubai – after graduating from the University of California, San Diego. The move allowed him to work on projects that inspired his entrepreneurial spirit.

“As I developed expertise, I got really involved with the startup ecosystem over there. I started getting pulled into workshops at different co-working spaces and incubators to share my knowledge and how I’d worked to build systems from scratch,” he shares.

As time went on, Mehrad found that many of his roles tasked him with thinking as an entrepreneur to creatively solve problems. This also led him to work for companies that were not often thought to be sustainable, but that offered solutions that were climate-positive.

After a decade abroad, Mehrad moved back to a California much different from the one he had left. The year was 2020 and wildfires turned the San Francisco sky red. The effects of the climate crisis loomed.

This drastic change led him to turn his concern into action by founding Cool Climate Collective where he invests in climate tech and uses his startup expertise to help founders build impactful companies.

In a Founders Network  webinar on Octobern 4, Mehrad will share growth hacking tips for startups. In addition, he’ll detail his framework for how founders can integrate a climate-first lens into any industry.

His session will cover:

• How to develop a climate-first business model
• How to best leverage growth hacking tips to scale sustainable businesses
• The power of using systems thinking to create new business angles
• Advice for how to integrate an eco-lens atop any business model

Investing In Climate Tech

Cool Climate Collective brings together investors and operators from across the world who are at the intersection of climate and technology. Their mission is to accelerate solutions to climate change.

“One of our strengths is that we’ve pulled in a lot of other operators or founders like myself who are able to support our founders,” says Mehrad. “We always start with ‘What are you trying to figure out?’ and then match our founders with another expert who can help them solve that issue.”

At Cool Climate Collective, founders and investors have options to join their syndicate, pitch a startup, co-fund businesses, or offer mentorship to up-and-coming founders. In addition to traditional support, mentors help founders navigate the world of grant funding or building private-public partnerships. This enables them to grow their impact to meet the unique challenges of founders within the field.

As a collective, the team has supported plant-based food companies such as AKUA, methane-reducing innovators including Alga Biosciences, and clean energy leaders like Moneytree Power.

An Unsuspecting Path Into Sustainability

Mehrad’s path into eco-investing was achieved by taking a path less traveled. Initally, he began working for a variety of companies in Dubai where he stumbled upon climate-smart businesses in unexpected places.

“I briefly worked with a thermal energy storage company in Dubai. I never thought of it as a climate company, but just a brilliant operational efficiency play to capture wasted heat,” says Mehrad.

This work taught Mehrad that eco-efficiencies can be uncovered and integrated into any business model. Today, he uses these learnings to offer ecosystem building to founders. His focus is on growth hacking by creating plans to penetrate markets that are yet to exist.

“The very basic statement of: ‘This is a problem for a billion people.’ I think that’s a massive market and a massive opportunity space,” says Mehrad. 

Thinking Outside of The Box

With this ethos, Mehrad looks to push founders beyond a ‘green tax’ or brand positioning that aims to sell climate initiatives as a virtue play. Instead, he focuses on finding the greater ‘why’ and positioning consumers around this.

“Take social enterprises, for example. One model is to offer a percentage of proceeds to support a cause. Another way of operating is to think outside of the box. If focused on land, I think: ‘Well there is someone who cares about this land’. Whether that’s the city, state, or others I try to get to the custodians who want to preserve it. From there, I focus on designing models to create a more institutionalized impact,” he shares.

Mehrad encourages all founders – whether sustainability-forward or not – to connect and collaborate with him to see if there may be a hidden eco-edge waiting to be integrated within their startup.

To learn more about growth hacking tips, register for Mehrad’s webinar on September 28.