Over the years we have in Lundsten & Partners learned how to predict which companies will have a higher rate of success over others. Common for the companies that will experience success is their focus on the goal and that they recognize that getting to the goal requires team effort.
The companies that often will fail, typically commit one or several of the following errors.
Focus on the shares not the value
The founders or company directors within this category have a keen focus on their shares of the company, and spend considerable time in calculating and recalculating how or if they get diluted, if an investor comes onboard. They miss the understanding of the equation: % shares times share value = return.
Focus on Denmark as the home market
The business books states that one should first conquer the home market before expanding internationally; however, the authors to these books often come from markets that are considerable larger than Denmark e.g. The US market. If Denmark is the success criteria before taking the next step, the company risks never to take the next step.
Focus on individuals rather than the team
In a team that is well formed, the tasks of each team member will differ throughout the year or company's lifecycle. The founders or business directors that have a keen focus on what the individual does rather on what the team needs to accomplish are often not able to develop a high performing team.
Which error do you commit?
If you are committing one or more of the above, then stop and think that you need other people and competences to succeed. If you want all the shares for yourself, then nobody wants to be part of the journey. This applies for individuals as well as for investors.