It’s generally understood that up to 90 per cent of all start-ups fail, but one CEO has said there is one way to mitigate this perilous statistic — gain corporate experience first.
CEO of start-up RiskWise Property Research, Doron Peleg, said it’s very easy to understand the strategic objectives, priorities and major deliverables when you come from a big corporation.
He also said the idea is the riskiest stage of starting an SME business.
“And the idea is only an idea. Then you have to build the prototype, launch version one, then version two. The risk in the beginning is huge and 90 per cent of companies can’t move from the idea to the exit,” Mr Peleg said.
Mr Peleg believes having a good idea is not enough for a start-up, adding it is just as important to have “finely-honed skills to make the dream happen”.
“To me, the top 3 things an entrepreneur needs are good ideas, the ability to deal with and adapt to constant changes and uncertainties and, obviously, strong execution skills,” he said.
“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.”
Mr Peleg said corporate Australia exposes entrepreneurs to many useful variables.
“The are lots of structural changes, cost cutting, outsourcing, off-shore activities and multi-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.
“Anything you have to do in a start-up is so much easier if you have a strong corporate background whether it is ensuring the quality of the product, testing that product or targeting businesses, particularly institutions as it helps to firstly put your foot in the door and secondly to have a strategy and then carry it out.”
Mr Peleg’s top 5 tips for startups learnt from the corporate environment:
1) Strategic objectives, priority setting and reviewing
2) A strong and experienced team
3) Strong project management skills
4) Resilience and ability to deal with major changes
5) Demonstrate proven capability to institutional clients