
Efficiency vs effectiveness
“Efficiency is doing things right. Effectiveness is doing the right things.” That’s Peter Drucker’s quote demystifying the efficiency vs effectiveness dilemma.
So, success and failure in start-ups have been attributed primarily to whether or not a company manages to raise capital. But the real question is how some companies succeed with financing while others (apparently as good as the winners) do not and consequently have to close down and dissolve. There is no magic or mystery; investors are pretty straightforward people. They expect something in return. And we can summarise those expectations in 4 main points:
The team is probably an essential part of the business venture and the one investors scrutinize as they have to decide if they can trust. Without the right people on board and trust, it is difficult, next to impossible, to grow and raise capital. Business founders need the right skills, knowledge and problem-solving in their teams. Sometimes, they need to make a trade-off as they don’t have all the budget to hire all the required headcount. In that case, founders must develop sequential planning to expand the team in the future and thus convince investors.
Many investors seek to address global challenges and look for opportunities to help or make a difference. This is a tremendous opportunity to position your business in the eyes of the investors and help shape a better future for the niche you specialize. Every drop counts. So, add yours by incorporating any of the 1y sustainable development goals in your business model. It will help to raise capital.
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“Efficiency is doing things right. Effectiveness is doing the right things.” That’s Peter Drucker’s quote demystifying the efficiency vs effectiveness dilemma.
We all fall into the ‘Urgency trap’. Especially around the time of the year when we want to close deals
Stop overanalysing with complex tools; use pen and paper instead. And especially… work in a team. A few weeks ago,