Startups Made Simple: The Scorecards

Below is an excerpt from our book Startups Made Simple: How to Start, Grow and Systemize Your Dream Business. Learn more about the book here.

PART THREE: The Scorecards

There are two simple scorecards in this section: 

1. The Founder Superpowers Scorecard which helps you determine how well you are doing on acquiring the superpowers (or hiring others to take that function). 
2. The 6-Step Scorecard which goes through the main points of each step and allows you to quickly determine how you’re currently implementing your vision. 

Tip: Complete a scorecard every few months to see how you’re doing (and for your team as well if you’d like).  

Visit http://www.startupsmadesimple.com to download digital versions of these scorecards and tools that are mentioned.

The Founder Superpowers Scorecard

The 6-Step Scorecard

The Founder Superpowers

• I’ve completed the Founder Superpowers Scorecard and know where I currently stand.
• I’ve identified my best superpower category (e.g. “Execution”) and I know to continue to develop this superpower. 
• I’ve identified my worst superpower category so I know either to work on it or hire others to handle this superpower.

Step 1: Imagine It

• I’ve identified my primary motivation for starting a business and am committed to making it a burning desire. 
• I have a Clear Vision (written) for the perfect business for me. 
• My business idea is the best possible cross-section of what I like to do, what I’m good at, what’s needed and what I can be paid for (ikigai). 
• I’ve written my idea down in the Startups Made Simple Business Idea Generator (BIG) to clarify my thinking and prepare for the planning step. 

Step 2: Plan It

• I understand it’s important to test my idea so I can avoid wasting resources and time on a business idea that won’t work. 
• I’m aware of “professional bummers” and others who don’t seem to like any new ideas and will avoid sharing my ideas with them for this reason. 
• I’m aware of the top reasons for business failure and have crafted my business plan to avoid them. 
• I’ve reviewed the best practices for picking a business name and have chosen a name for this project. 
• I’ve completed the Startups Made Simple Business Plan to test my idea and do some “back of the napkin” math to see if I should proceed to the next step or go back to Step 1. 
• I’ve tested my idea with some potential customers and at least 5 have indicated they would pay me immediately if my product or service existed. 

Step 3: Start It

• I’ve determined if I need a formal business plan to obtain funding or investors. 
• I’ve clarified ownership issues mentioned in Step 3 including agreeing on ownership percentage, duties and time commitments in writing (and stock options if applicable). 
• I’ve selected a state, a name and legal structure appropriate for my business. 
• I’ve filed the legal paperwork to formally register my business.
• I’ve completed the Startups Made Simple Startup Checklist to complete any post-formation tasks (bank accounts, licenses, etc.) to complete the proper set up of my business.  

Step 4: Grow It

• I know the difference between sales and marketing and that they are both critical skills to learn for a startup to succeed. 
• I understand that it is much easier to identify your ideal customer and target them (even in a small niche) then attempt to get your message out to every potential customer. 
• I’m aware of the biggest marketing and sales mistakes (see Step 4) and have taken action to prevent them in my business. 
• I understand that a superior product or service is easier to sell (but doesn’t necessarily sell itself). 
• I understand that some customers are much more profitable than others and I think “80/20” when trying to identify them. 
• I’ve completed the Startups Made Simple Marketing Plan to identify my ideal customer, their personas, to build my list and test my message via various marketing methods. 
• I’m aware of the elements of a great sales process, what makes great salespeople and have taken action to create a replicable sales process in my business. 
• I’m aware of what it costs me to acquire a lead or sale and the lifetime value of a customer so I can adjust my marketing resources accordingly. 
• I realize that I may need to pivot my idea to find “product market fit” and that this is normal in a startup. If I’ve exhausted the options I know it’s normal to return to Steps 1 and 2 to continue working on my idea. 

Step 5: Manage It

• I understand that having a management system for my business is key to earning my freedom from working in the business and to start working on improving the business. 
• I’m aware of the Five Competencies:
  • The Right Plan – I need to have a clear vision, purpose and goals. 
  • The Right Process – I need to have my processes documented. 
  • The Right People – I need to hire, train and manage the best people I can afford.
  • The Right Tools – I need the best tools to do the job. 
  • The Right Routines – I need a regular routine to keep my business on track. 
• I have scheduled regular time to work on the Five Competencies in my business (usually starting with Plan, Process or People) and implement the best practices as described in Step 5. 
• I’m aware of the customer, money and compliance best practices as described in Step 5 and have taken action to prevent any issues in these areas. 

Step 6: Systemize It

• I understand the importance of having a systems mindset and how it not only makes my life easier, but adds considerable value to my business. 
• I’ve begun putting together “The Manual” and documenting my business as described in Step 6. 
• I’m aware of how complexity and entropy can destroy my system so I’ve taken measures to prevent that in my business. 
• I’ve adopted Core Values or Principles and use them regularly in my business. 
• I’ve decided what I want for the future of this company and have planned accordingly (keep running it, hire a leadership team, hire a CEO, exit plan, etc.).

This was an excerpt from our book Startups Made Simple: How to Start, Grow and Systemize Your Dream Business. Learn more about the book here or see our previous excerpts here.

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