As a founder in WA in 2023, you can still be part of a tight-knit, but rapidly expanding ecosystem. The Perth and surrounding startup community is not only attracting curiosity from global Venture Capital (VC) firms but is also gradually transforming into a diverse hub of ambitious entrepreneurs from universities and beyond. They are joining the foray of budding entrepreneurs looking to rebalance the resource-heavy economy.
It’s also well known that founders face a myriad of challenges when they start a business. Therefore, developing mental resilience early is a fundamental strength to enable founders to bounce back quickly, particularly when starting out.
In this article we’ll explore 3 common startup challenges, and what you can do to fortify your business journey through funding challenges, developing your leadership, and finding ongoing support.
Overcoming funding challenges
It took the Canva founders, originally from Perth, over 100+ rejections, multiple Silicon Valley trips, and 3 years of pitching before they secured their first Investment. They never lost sight of their larger goal, and their thinking was every ‘No’ brought them closer to a ‘Yes’.
Canva was founded in 2013, is one of Australia’s largest unicorns, and was recently valued at more than US$40 billion.
If you’ve failed to secure funding through investors, VCs, or via other means, there are still learning opportunities to be gained from this experience. Investors can provide valuable feedback and insights to enhance your pitch, product, and/or approach. That’s why it is crucial to consider the real value of their comments. In fact, this is when you truly begin to build a growth mindset, being receptive to feedback and looking for chances to grow.
When funding proves elusive, it is easy to lose your way, so do your best to keep sight of the larger vision. Sometimes, creating a visual or audio reminder, related to your objective, is the perfect prompt to keep you focused. You may also want to consider alternative sources of funding, in the interim, just to keep your project ticking over.
Leadership as a founder
Harvard Business School research states that 82% of startups failed in 2019 because of poor management and leadership.2 Evidently, leadership is not only critical for your continued success but also helps to attract and retain talent.
Let’s look at key attributes that help to transform passionate founders into influential pioneers:
- Realism and confidence – have the confidence you will succeed in your business quest, but always stay true to yourself. Plus, be aware of the current environment and obstacles you face.
- Quick Decisions – be prepared to act fast, you may not have all the facts, but remember mistakes can be fixed, and your business plan and strategy can be adjusted on the go.
- Clear Communication – this is in terms of your expectations, but also opportunities and building the bigger picture for the benefit of your team’s motivation and morale.
- Support your Team – Be approachable and always keep conversations transparent. Listen to their ideas and concerns, and give both regular praise and constructive feedback.
- Empower yourself – A founder’s time is a precious commodity, so delegate work to someone else, to challenge another member and free up your own time. Giving team members more discretion builds trust and self-esteem too.
- Develop others – coach them into eliciting their own development goals, and provide them with opportunities to really grow and progress their career.
Leadership is one of those skills that is acquired through a combination of knowledge, interaction, and trial and error. As a founder and individual, you will develop your own unique style. In turn, this will help you to quickly hone your abilities, making it easier for you to feel energised and more confident as a business owner.
Building a support network
You’re only as strong as the pillars you have supporting you. That’s why it’s a non-negotiable to have people around you that you can trust, who will listen to you empathetically, and who never judge you.
As a founder, you should really consider connecting with other founders, especially in the local community. As a new business owner, it’s all too easy to get lost in other people’s success, feeling envious or seeing them as rivals. However, what if we could view their wins in a different light, and be inspired by their triumphs instead.
Building connections with other people in your exact situation allows you to converse easily and share common problems. Moreover, this benefits everyone as you exchange insights and experiences. Supporting each other is a great way to build long-term relationships and help the community become more cohesive and established.
To connect with other founders in the community, you could try meetup events, networking through LinkedIn, or even joining an accelerator or incubator. Some local events you could join include:
- Meetup events – Morning Startup or Sundowners (held at Spacecubed)
- West Tech Fest – held annually in early December
- Events listed on the Startup News Calendar
In addition to the startup community, engaging your own circles is also key to building strong support pillars. Try engaging with a:
- partner, a close friend or family member
- mentor who can provide strategic direction and advice on your particular sector, product or service
- coach that can be objective, empathetic, and honest. They can help you identify blind spots, get faster results, quickly overcome obstacles, cultivate engaging leadership and help develop your overall business mindset for greater self-confidence.
Final thoughts
Ultimately, it’s vital to build resilience as a founder to streamline your own startup journey. Specifically, learning from your challenges, building your own leadership style, and engaging your own support network will enable you to better endure the volatile path ahead.
