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Key Takeaways Startups can learn valuable lessons from the disciplines that make large companies successful, from team building to financial awareness.
Balancing creativity with operational discipline is key to building a company that can grow, attract investment and be understood by potential acquirers.
People often think of startups and Fortune 500 companies as opposites, the small disruptor versus the corporate giant. In reality, the startups that survive and grow borrow from the same disciplines that make large companies succeed.
After helping Staples scale from a startup to a Fortune 100 company and leading the development of a major transformation plan for Barnes & Noble, I have seen both sides of business growth. Today, as an investor in over twenty early-stage companies, I find that founders often underestimate the importance of structure, discipline and focus. These are the fundamentals that define strong enterprises and make startups more attractive to investors and acquirers.
Here are some lessons from the Fortune 500 playbook that every startup should learn.
1. Know your numbers
When I took over as CEO of a Fortune 500 national retailer, I discovered the company had a very short cash runway left. That fact shaped every decision that followed.
Startups rarely bring that same level of financial awareness. Founders sometimes say, “We’ll figure out the financial model later.” That is a mistake. If you cannot clearly explain how your business generates revenue, it is not yet a business.
Leaders in large companies live by their numbers. They understand margins, cost structures and unit economics. A startup founder does not need a full-time CFO in the early stages, but they do need a financial roadmap.
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