Embarking on a new endeavor is exciting and driving, but unfortunately, it also comes with a potential risk factor. With over 2,250 startups launched in 2021, the competition is fierce, and the success rate is underwhelming, with about 90% of businesses failing or dropping out. Though funding is essential to starting a new company and keeping it afloat, the startup industry applies the survival of the fittest theory.
In addition to acquiring funds to give new and up-and-coming entrepreneurs the push they need to kick-start their company, startups sometimes crash and get exhausted due to the lack of a proper support and guidance team. However, an unsuccessful startup does not mean failure, as various reasons account for an entrepreneur dropping out, be it from a lack of funds or an uninspiring vision. Entrepreneurs with the proper knowledge and skills use their expertise and lessons to help other new companies survive and thrive in the game.
Usually, when startups hire employees, they skim through the incoming resumes for the desired skill set, qualifications, and degrees relevant to the job post they are applying for. Often, the recruits or employees are from non-entrepreneurial backgrounds, which is why startups hire ex-entrepreneurs — to balance relevant skills and build an experience support system. Ex-entrepreneurs bring an arsenal of strategies and ideas to the table, giving startups the boost they need to make their dreams come true.
Business Experience
Every ex-entrepreneur, regardless of the industry or company, has experience navigating the business world. From working towards building a name to pitching brand values and ideas, ex-entrepreneurs have years of experience maneuvering through the landscape. An ex-entrepreneur who managed 30 employees with a steady fund is better equipped to guide a new startup than a new founder with a small team and no fixed funding.
Managing Multiple Departments
Due to the lack of a full-fledged team, sometimes, startups require a team member to take on multiple responsibilities related or unrelated to their work experience. For instance, a content writer could also work as a copywriter, or a social media manager could also take on the work of a PR manager. While this gives new applicants the experience they need to broaden their skills, it might be overwhelming and challenging to immediately step out of their comfort zones. On the other hand, ex-entrepreneurs have experience working in various roles and multiple positions. Their journey as entrepreneurs has developed their skillset and equipped them with the ability to cover and oversee brand image, designing, website, and social media until new hires become more familiar.
A Helping Hand
With a newly established startup, founders divide their time between executing company goals and devising new techniques to manage said roles effectively. Founders of startups have to juggle a plethora of operations while simultaneously ensuring they don’t drain or undergo burnout. Hiring ex-entrepreneurs allows founders to share their responsibilities with a senior and more experienced entrepreneur with the expertise and insight to take on heavy roles, giving founders some room to relax.
Leadership Skills
Ex-entrepreneurs effortlessly fill the shoes of leaders. Having worked with various companies and ideas, they possess the skills to build a vision, create practical yet ambitious goals, divide responsibilities smartly, and stick to the deadline by ensuring company activities are right on schedule. They use the challenges they have encountered as a benchmark to develop new and innovative solutions to business hurdles and map ways to grow and succeed in a way that minimizes risks and prevents unjustified expenses.
Equipped With Strategies
The business world does not come with a fixed list of challenges. New gaps and uncertainties are part and parcel of setting up a new company. Various factors result in a fresh batch of issues, such as market inconsistencies, fluctuating supply and demand, ever-changing technology, customer satisfaction, and monitoring competition. Ex-entrepreneurs devise ways to adapt to constant changes by enhancing company technologies, tools, and systems.
Prevent Future Liabilities
Risk management is an essential component of every startup. Ex-entrepreneurs are aware of the risks of adopting different strategies, trying out new practices, and not walking in step with the changing climate of the business sector. Weaponizing their familiarity with startup challenges, ex-entrepreneurs help companies identify vulnerabilities, monitor risk patterns, and create new methods to avoid future discrepancies and recover from unsuccessful or underwhelming results.
Final Thoughts
Ex-entrepreneurs are experienced leaders and managers who act as a guiding force and provide a support system to budding businesses. Gaining an edge in the competitive business world can be challenging, which is why founders hire ex-entrepreneurs so that their insights and expertise can boost their company and join them as they reach new heights.
