In the startup world, everyone talks about the big wins:
- Explosive user growth,
- Market share, and
- Valuation multiples
These are the exciting milestones celebrated in meetings and pitches. But the real magic happens behind the scenes, in the well-defined and constantly improving processes that lead to these outcomes.
Startups are like a complex machine, where every stakeholder desires a certain outcome –
- for customers it is the economic utility driven by the consumption of the product
- for its investors it’s the growth in business value hence returns
- while for the promoters it may be the perfect trio of people, product and profits.
While all these desired outcomes seem to complicate running a business, the truth lies in the fact that all the above outcomes are a result of streamlined business processes.
The importance of process orientation is crucial, also highlighted by the Japanese principle of Kaizen.
Kaizen is all about making small, steady improvements to processes.
This is especially important for startups, which need to be flexible and adaptable to survive and grow.
By constantly evaluating and refining how they do things, businesses can stay ahead of the curve, offer better products and services, and keep their customers happy. This commitment to improvement is what leads to long-term success.
For instance, a startup with a set process to evaluate and inculcate customer feedback ensures incorporation of all crucial feedback to be an innovator of the space, whereas one that does it when the need arises often fails to stay relevant for long.
A great example to highlight were the emerging phone brands of India during 2010s, while they saw early success, they lost the majority of the market share by not inculcating changing customer trends (read more).
The Journey matters more than the destination –
Final outcome is a result of many small outcomes, and every outcome is the result of an underlying process. Focusing on the journey increases your chances of success and makes the whole experience more rewarding.
Process hence the journey is important to us at Auxano. With clarity set out in the form of the final outcome “Supporting Entrepreneurs while generating wealth for Investors” Setting the process first helps us go beyond the finish line.
The Role of Venture Capitalists
Auxano, as a venture capital firm, works alongside startups in developing and improving the processes. It is just as important as looking at their potential outcomes. The proactive approach not only increases the chances of achieving desired results, but also lays the foundation for sustained growth and innovation.
Way forward –
While outcomes get all the attention, it’s the process that truly drives success. It’s where the real progress happens, where businesses grow, and where true satisfaction is found. Following the process can be painful but developing the discipline to the commitment is much more enjoyable than just reaching a goal; it’s about continuous growth and prosperity.
For both startups and VCs, focusing on process ensures that success isn’t just a momentary event, but a continuous journey. By constantly improving and adapting to change, we create strong and innovative businesses that thrive well beyond the finish line.
Author:
Rakesh Rana
