Startup owners require an outstanding operations department for the growth and success of their business. As much as strategy and other factors are essential, a great operator will influence the success or failure of your business. Below are four major operations mistakes that any startup should avoid.
Failure in Hiring a True Operator
A professional operator will turn an idea into reality through proper processes and execution. Most startup owners try to play the role of company founder as well as operator. However, unless they have a proven track record of being an operator, they may find it hard to execute plans. When a startup starts its operations with an unqualified operator, it will not scale efficiently. The solution is to hire someone qualified in operations as early as when the company is being formed.
Poor Leadership in the Position of COO
An unqualified COO will not create an accountability structure or even enforce them in their organization. They will often blame a third party or other factors for their missteps rather than take responsibility. The result is a toxic effect on the operations team, which affects the business in general. A good COO will stay accountable for everything happening in their department, making it easy to maintain a sustainable execution of ideas.
Failure to Plan
All startup owners need COOs who will plan ahead. Even when things are running smoothly, they do not just sit bask and ride that train. A great leader should anticipate potential issues in customer service, software development, supply chain, manufacturing, or any other factor that could slow the company’s growth process. It is not a matter of being paranoid but rather anticipating unforeseen challenges and finding ways to prevent them.
Poor Organizational Structure
Most companies with organizational hierarchy structure challenges struggle with operations. It can be tyrannical where all the power is held and yielded and COO. In such a case, team members rarely make contributions or decisions. It can also be too wide where you find roles and functions not suited for the operations department are also being done there. For Instance, the sales and marketing department should work separately from the operations department.
Startup owners should make an effort to understand best practices in operations even if they hire a qualified COO. Whether you are looking for funds for your startup or to hire an operations team, contact Evolt Capital for financial assistance.
