The Essentials
- Customer interviews are incredibly important.
- It’s OK to be wrong so long as you identify incorrect assumptions quickly, and adjust immediately.
- Don’t be transactional with investors–they’re humans, not ATMs.
Jeffrey Thomas is the Executive Director at Lever and MFN team lead.
Since Lever was founded in 2014, we’ve supported over 300 entrepreneurs and helped launch more than 100 new companies, all from our headquarters way out in the northwestern corner of Massachusetts. We’ve seen founders flourish, and we’ve seen them flail.
I work with startups both as the managing partner for our venture fund and as a coach in our accelerator programs. I’ve worked with a broad range of startups in health technology, manufacturing, clean energy, and even ecotourism. Regardless of the hat I’m wearing or the business vertical a startup operates in, I find myself offering similar tenets to founders. Here are the four things I most often say:
- The only thing you know for sure about your business plan is that it’s wrong…and that’s OK. Ideas are plentiful–strong execution is rare. Adopt the mindset that the best path to success is identifying what parts of your business model are wrong…and then quickly adjust them. We can connect you with experts if you need help along the way.
- Talk to customers early and often. And never stop! The success of your business depends on you understanding your customer’s needs. You might have a great idea, but it’s driven by your own assumptions and biases. There is no better way to ensure product-market fit than to continuously speak with customers.
- You know nothing, Jon Snow. Game of Thrones’ Ygritte provides some good insight for founders–I would extend that to “you know nothing until you’re in the market.” Be humble and mindful of your own assumptions until customers are paying you.
- Have compassion for investors. Founders and funders want their startups to succeed, but operate with different priorities. For example investors focus on time-to-exit because it affects the internal rate of return (IRR) for their fund. Institutional investors (VCs) must generate investor returns to stay in the game, and there’s stiff competition among VC firms to raise capital for their funds.