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WHY DO FOUNDERS HAVE A DIFFICULT TIME RAISING CAPITAL (Part 4 of 10 Series)
By:
Sara Rauchwerger
Managing Director
Geron Vanderfeesten
Founder, Investor, Consultant
Early-stage companies typically consist of a small group of talented individuals driven by a common mission to succeed. Initially, communication among team members is usually seamless due to the limited size of the group. However, even within a small team, silos may emerge where individual members diverge in different directions due to communication gaps or misunderstandings. Unfortunately, these discrepancies often become glaringly apparent during the fundraising effort, particularly when the CEO presents to investors after several iterations of the pitch deck. This is one of the many pitfalls entrepreneurs face in their funding effort, as described in the introduction. In this section, Part 4 of the series, we will explain how to maintain an open channel of communication and clarity within the team, while allowing growth, ensuring alignment, and minimizing misunderstandings across all levels of internal and external communications.
PART 4 – Communicate, Communicate, Communicate
Introduction
Open communication is the key to unlocking the full potential of a team. When team members feel comfortable expressing their thoughts and concerns, it leads to increased collaboration, innovation, and overall productivity. Moreover, transparent communication builds trust among team members and encourages a culture of accountability, where everyone takes ownership of their work and strives for excellence.
In this article, we will provide a comprehensive perspective on what needs to be considered as part of building your communication mechanism leveraging on a combination of strategies and tools that facilitate seamless interaction among team members while allowing for growth.
1. Communication Tools
With a multitude of platforms, tools, and offers available for effective communication, it’s crucial to consider your specific needs. Each tool comes with its own set of advantages and disadvantages. Moreover, the tools you choose should be easy for others to learn and adapt to, particularly as you onboard new team members. Given the limitations of funding, it’s wise to avoid investing in overly expensive tools that may strain your budget.
As discussed in Part 2, prioritizing integration capabilities across devices and platforms, ensures future scalability without excessive costs. Seek out tools, for example, that may offer initial free credits for startups and can facilitate growth. The most important research that you will conduct initially is identifying the right communication tools that align with your long-term objectives, minimizing the need for mid-way shifts as your company expands. Therefore, choose tools that best suit your intended use (some common tools include Slack, WhatsApp, Monday, Google Workspace*).
2. Documentation
Now that you selected the tools, it costs you nothing to agree on the processes and procedures with your team to lay out the foundation on which you can leverage these tools for all your communication needs. Similar to the customer on-boarding documentation (as discussed in Part 3) it is wise to also establish how you plan to promote a free flow of important information across the organization leveraging on the selected tools. You can then use this documentation to on-board new hires.
3. Encourage Impromptu Meetings
While formal meetings have their place, impromptu meetings can be just as valuable for fostering spontaneous discussions and addressing urgent issues. Encourage team members to schedule quick sync-ups or brainstorming sessions when needed, either in-person or using common video conferencing tools (for example Zoom, Google Meet, Microsoft teams or any other selected tool*).
4. Host Regular Formal Meetings
Scheduled team meetings are essential for providing updates, setting goals, and aligning everyone’s efforts. These meetings should be structured yet interactive, allowing team members to ask questions, share progress, and provide feedback. It is also a perfect time to share your pitch deck with updates or seek feedback during the fund-raising process.
5. Establish Clear Channels for Feedback
Feedback is crucial for personal and professional growth. Similar to the feedback you seek out from your customers, internal company feedback is just as valuable for the success of the company. Create formal or informal channels, such as anonymous surveys or suggestion boxes, where team members can provide feedback on processes, projects, or team dynamics. Additionally, encourage a culture of constructive feedback where team members feel comfortable giving and receiving input openly.
6. Promote Transparency
Transparency breeds trust within a team. Keep everyone informed about important decisions, changes in direction, or upcoming initiatives. Transparency also means being honest about challenges and failures, as it allows for collective problem-solving and learning from mistakes. This is a perfect opportunity to also share feedback from investors to allow the group/team to advance to the next level or regroup if necessary.
Conclusion
In today’s dynamic work environments, effective internal communication is not just a nice-to-have but a critical component of organizational success. By building an open communication mechanism that encourages feedback, transparency, and accountability, teams can foster collaboration, drive innovation, and achieve their goals more effectively. Whether through digital platforms like Slack* or impromptu meetings, investing in communication tools and strategies pays dividends in the long run, guaranteeing that teams can adapt, collaborate, and thrive in any situation.
*In discussing the various communication tools available on the market, the authors do not endorse or promote any specific product or service mentioned in this content. All opinions and information provided are based on personal views and should not be interpreted as recommendations or advertisements.