The man behind an innovative approach to calculating risk in the property market says startups should always be ready to learn lessons from their corporate counterparts…
Doron Peleg founded RiskWise Property Research in 2016, which he says uses a unique algorithm to provide anyone involved in the property market a clearer picture on the risk they’re taking.
Drawing on more than 20 years of risk management experience, Doron told Startup News corporate experience is invaluable in navigating the minefield that is growing a startup.
“The risk in the beginning is huge, and 90 per cent of companies can’t move from the idea to the exit,” he said.
“When you come from a big corporation, it’s very easy to understand the strategic objectives of the business, its priorities and major deliverables. It is by far easier not only to set a proper plan, but also to execute and deal with any challenges and surprises that may arise.
Doron said this is especially true thanks to Australia’s rapidly evolving economy.
“In today’s corporate Australia there are lots of structural changes, cost cutting, outsourcing, off-shore activities and million-dollar projects that change from end to end,” he said.
“People with experience working in senior positions in that type of environment are excellent at dealing with changes, obstacles and surprises. That’s because they have seen it all before.
“Also, people who have worked for major corporations in senior roles have a lot of experience not only in their own data field but also in related fields.
“They are experienced in working with multi-disciplinary teams like technology, products, sales and risk management and these are so essential when you work in a startup company.”
The former Westpac executive manager said he has seen first-hand just how beneficial this corporate experience can be.
“In our case, the idea was to establish a residential property rating agency and to be in a position to serve the entire market, from the major lenders and LMI, through corporations, property professionals and property buyers,” he said.
“My corporate experience helped to put a 5-year strategic plan, to build the relevant streams and to deliver the plan very fast.
“As a result of my experience at Westpac and with outsourcing, re-structuring and the implementation of new systems and processes, it was easier for me to deal with constant changes at RiskWise, including changes to consumer needs, relocation from New South Wales to Queensland and even changes to the marketing strategy.”
Doron said his advice even applies to passionate young people, eager to make a start on their startup dreams.
“There is much research that shows very clearly that an experienced team has significantly greater chances of success,” he said.
“I know that there are great success stories about people who had no experience and have done very well.
“However, these are only exceptions.”
As for how startups can attract this talent, Doron said the key is giving people a reason to take a risk.
“Position yourself as a unique and innovative company, have a good presence in the traditional media, have a clear structure that shows clear strategy, create roles that enable people to grow with the company and provide competitive remuneration and options for top talent,” he said.
“You need to take into consideration that corporate talent enjoys good remuneration, a comfortable environment and they don’t face a real risk of losing their job.
“Working for a startup is a high-risk environment.”
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You can learn more about RiskWise here.