In the second lecture, Sam Altman, President of Y Combinator, outlines the final two stages in successful entrepreneurship namely, the formation of the start-up team and execution of the business idea. These stages are a continuation of the previous steps of business idea formulation and product design. This paper presents a report as to the practicability of the ideas suggested by Sam Altman in the second lecture.
A start-up team plays a fundamental role in the success or failure of a start-up. Altman postulates that the selection of start-up partners should be done carefully and one should ideally partner with people they are familiar with. This, combined with competent employees who share in the start-up’s vision, improves a start-up’s prospects a position Burn (202) agrees with. Altman further advises that firms should hire few if any, employees and should be based need-based. Hired employees should be adequately appraised, by, for instance, providing them with equity.
Business ideas are as important as their execution. Burn (145) agrees with Altman’s sentiments on the importance of creating a business model, launching one’s product, identifying a market and targeting it. The business model helps one identify and focus on the critical business activities. Altman provides that this can be done by setting goals that are measurable and specific, as well as being realistic, achievable, and time-bound goals. He added that an entrepreneur should focus on achieving and maintain a growth rhythm by, for instance, launching new product features, expanding the market and having a constant review of performance.
A competent and committed start-up team is essential for the effective and efficient execution of a business idea. Start-up ideas should be executed appropriately by setting goals, focusing on them and achieving and maintaining growth momentum.
Work Cited
Burns, P. Entrepreneurship and Small Business. New York, NY: Palgrave Macmillan, 2016.
