Learn the Laws of the Jungle for Startups

Learn the Laws of the Jungle for Startups


It’s a jungle out there. In 2012, total entrepreneurial activity in the U.S. hit its highest level since 1999, according to Babson College. That’s the good news and the bad news. The opportunity for change is huge, with everyone taking a new look at the world after the recession, but the competition is also huge, since the cost of entry is at an all-time low.



In this context, it’s time for every business, not only startups, to take a fresh look at the basics of business success. Jamie Gerdsen, in his book of lessons on business change, creatively titled “Squirrels, Boats, and Thoroughbreds,” aims first at existing businesses, but I believe that most of his points, like his laws of the jungle, can be rewritten for startups, as follows:

If you want to eat… I don’t believe in greed, but we all need to make enough money to eat. This means building a revenue stream and tuning your business model to produce margins in the 50 percent range or above. I support being socially and environmentally conscious, but you can’t help anyone else if you don’t eat.

If you want to survive… Survival means growth and scaling. Once you have a proven business model, you need to scale the business up quickly to stay ahead of competitors. These days, doubling your business volumes every year is the “norm” that investors and potential acquirers are looking for.

If you want to be feared… Every startup needs a sustainable, competitive advantage. In the jungle, it might be the strongest jaws, but in startups, it’s more likely the strongest intellectual property. With no competitive advantage, startups with new ideas gaining traction are never feared and are usually eaten for lunch as sleeping giants wake up.

If you want to mate… In the business world, we call this finding the right strategic alliances. That means you have to stand out above the crowd, and aggressively pursue those candidates that can help you breed even more presence and power in the marketplace. Sitting quietly on the sidelines waiting to be found is a lonely world.

Every startup in the business jungle begins with a limited amount of 3 precious commodities: time, talent and treasures. The smart ones have a plan for how they intend to spend these resources and measure themselves against the plan. Otherwise, they will likely look back later and find that one or more of the laws of the jungle have been compromised:

Time — Start with a timeline of how much runway you have, with objectives and milestones mapped against the timeline. Time management is an art. Don’t waste precious time on the “crisis of the day,” in favor of strategically critical tasks. The best entrepreneurs work on making better time management a top objective.

Talent — Every startup needs talent to give the company value. In the beginning, the entrepreneur has to cover all talents, which is made more possible these days by the wealth of information available on the Internet, as well as books and online courses. Talent can also be outsourced. Regardless, surviving in the business jungle without talent is unlikely.

Treasure — Most entrepreneurs assume that treasure means funding. In reality, more important treasures often include intellectual property, the ability to innovate and well-defined processes that can deliver great products and reach new customers more efficiently and effectively than competitors. Money is no substitute for these other treasures.

In summary, whether you are running a startup, a family business or a famous brand like IBM, you are part of the jungle. You can be a small tiger with big teeth or an aging dinosaur. The laws of the jungle apply to all. It really is a world of survival for the fittest.

The jungle framework is a great one to set the right perspective. Startups that prosper and succeed learn the rules of the jungle early, don’t make excuses and don’t look for any entitlements. Does your startup have an understanding of reality, a real sense of urgency and the overwhelming drive to make you the king of the jungle any time soon?

Reprinted by permission.

About the author: Martin Zwilling

Martin is the CEO & Founder of Startup Professionals, Inc., a consultancy focused on assisting entrepreneurs with mentoring, business strategy and planning, and networking.

Martin for years has provided entrepreneurs with first-hand advice, mentoring and business plan assistance as a startup consultant. He has a unique combination of business and high-tech experience, and executive mentoring and connecting startups with potential investors, board members, and service providers.

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