Key lessons from the founders of WeAreBrain

ENTREPRENEURSHIP

Starting a business is a challenging journey defined by uncertainty and unique obstacles. No step-by-step guide can guarantee success, but learning from the experiences of others can provide valuable insights. Here, the founders of WeAreBrain share their journey and the lessons they've learned in growing their tech consultancy from a simple idea to a thriving business.

1. Start slow, but strong

One common pitfall for startups is premature scaling, with many failing due to over-expansion before establishing a solid market fit. According to Forbes, 70% of startups fail due to this issue. Focus initially on mastering one aspect of your business before branching out.

Avoid the temptation to overextend yourself too early and concentrate on defining your business model and market fit.

2. Be frugal with your capital

In the first year, it is crucial to manage your finances wisely. Mario emphasises the importance of building cash reserves early on. “Be frugal in the way you spend your money,” he says. Ensure you have enough funds to sustain the business during slow periods or unexpected challenges. This approach helps to maintain stability and allows for strategic investments when the time is right.

3. Define your vision

On average, startup founders require 2-3 times longer than expected to validate their business model. A clear vision and mission are essential for guiding your business decisions. Your mission explains what you do, how you do it, and for whom, while your vision outlines why you do it and your long-term goals. Together, they serve as a decision filter, helping you stay focused on your core objectives and values. This clarity prevents your startup from being stretched too thin and ensures alignment with your brand values.

4. Build a strong team

The success of your business hinges on the quality of your team. WeAreBrain considers their team members as family, with each person having ownership over their work and the business. Mario advises, “Surround yourself with people that are better than you and who share your values.” A supportive and empowered team will drive your business forward and create a positive working environment.

5. Approach funding wisely

Securing initial and ongoing funding is a significant challenge for startups. WeAreBrain prefers to fund new initiatives from their operating cash flow, staying independent from banks and investors. However, there are exceptions: for example, during our involvement with clevergig (a former venture of ours), we successfully completed two investment rounds on Leapfunder and became proud alumni of Startupbootcamp.

WeAreBrain also recognises that there are various routes to secure funding, such as networking events and investment rounds. Elvire Jaspers, CEO of WeAreBrain, advises, “Apply for a credit line or loan when all is going very well, not when you need it.”

6. Augment your team

In the early stages, resources are often stretched thin. Augmenting your team with external specialists can help meet your business needs without overburdening your core team. Outsourcing positions such as IT and digital services can provide the expertise required to scale your business effectively. For example, WeAreBrain offers augmented teams services to help businesses digitally scale to meet the needs of a growing business. Find out more here. 

Summary

Starting a business involves navigating numerous challenges and uncertainties. By learning from the experiences of successful entrepreneurs like the founders of WeAreBrain, you can gain valuable insights into building a strong foundation for your startup. Focus on mastering one aspect of your business at a time, manage your finances carefully, define a clear vision and mission, build a strong and empowered team, approach funding wisely, and consider augmenting your team with external specialists. These lessons can help you navigate the entrepreneurial journey and achieve long-term success.