By: Amanda Sparks
Developing an innovative new idea through a fresh startup is never easy. There are so many things that can go wrong in a matter of hours, so who can blame CEOs for abandoning ship when going gets tough? Luckily, one of the best strategies to implement when you are certain to have a golden goose in your hands is to go stealth.
Stealth startups are a common occurrence in today’s digital world, and with so little innovation left in the world, it’s the obvious choice to make. But what are some of the main rules of stealth startups and what mistakes should you absolutely avoid if you go the low profile route?
Why go stealth at all?
The first question that needs answering is why a startup should consider going stealth in the first place. Stealth startups are defined as startups that avoid public attention, media buzz and any type of hype buildup before launch. They establish special policies to ensure that no piece of data gets out of the company before their lineup of products is ready for demonstration and distribution. So why is stealth startup even a thing?
After all, there are too many variables to consider and so many new policies to enact just to keep information from leaking out to the public. However, stealth startups carry a plethora of benefits with them, so let’s take a look at some of the most predominant ones:
- Operating in stealth mode ensures the highest level of privacy and anonymity for your employees. It allows them (and you) to focus on developing the best possible product without thinking about press conferences, interviews, and premature demonstrations.
- Stealth startups have the maximum security when it comes to the protection of your intellectual properties (IPs). There is no chance whatsoever for other startups and your competitors to get their hands on your ideas. Even your employees and eventual visitors will be required to sign Non-Disclosure Agreements (NDAs) that ensure their silence.
- Most importantly, stealth startup policies allow you to avoid any hype, buildup or expectations in regards to your products. While this may seem counterintuitive, it will actually help your developers and employees to focus on their work and not on meeting the public’s expectations. A more relaxed and laid-back crunch process is something that every startup should take into serious consideration when thinking about going stealth.
Ground rules of stealth startups
Now that we have established some benefits of going stealth, what are the steps to actually get there? After all, some changes to your everyday workflow and policies will have to be made to accommodate this change. In the words of James Scott, CEO of Essay Supply: “It is important to be strict in a stealth startup policy which is why it’s better to fire several employees than fail the whole plan.”
While it may sound radical at first, remember that your startup’s mission is far bigger than a few people. Also, keep in mind that stealth should only be a temporary status – you will want to move out of the shadows at some point. The reason for this is simple – like every business, yours needs revenue to survive. So what are some of the ground rules of stealth startups that are essential to keeping a low profile?
- Establish production calendars
Make sure that you have clearly defined your products, development calendars and milestones. Changing your plans mid-cycle is very difficult in stealth mode, mainly because you can’t bring new people aboard without going public. Define your products and start working on them without looking left and right for new ideas (at this moment).
- Hire before going stealth
Make sure to assemble your team before going stealth. Once you establish a low profile, it will be difficult to bring new talent into your startup without raising eyebrows. This might make your stealth mode compromised and is in no way a good move. Whoever is on your team at the moment of going stealth should stay there until the end.
- Stealth VS Public launch
Once you have undergone several cycles of development, it will be time to define your launch window. Some startups choose to soft-launch their products without hype or marketing – this doesn’t turn out well most of the time. Stealth mode is there to ensure that no one bothers you while you are in development.
Once you have something concrete to showcase, you should lean towards a public launch of your products like most stealth companies do. Lastly, let’s take a look at some of the mistakes you should definitely avoid if you opt for a stealth route for your startup.
Mistakes to avoid
- Lack of actionable ideas
Don’t go into stealth without having a clear picture of what you want to develop. Wasting time and resources on ideas that are invalid for future products will only cost you precious resources.
- Insufficient funding
Funding is one of the most important aspects of stealth startup policies. Once you go under, there will be no way of inviting new investors without going public. Make sure you have enough resources on your hands before going through with your plan.
- No clear customer base
Stealth entails that you have a clear understanding of who your customer will be later on. Building a product without a customer in mind will result in invalid prototypes without commercial application. Target a specific demographic and have them in mind at every step of your development cycle.
- Premature publicity
Announcing anything before you develop an actionable prototype will result on the contrary of what a stealth startup should look like. Make sure that you have a working lineup of products before announcing a launch date and building up any hype.
- Information leaks
One of the worst things that can happen to a stealth startup is to have information leak out. Make sure that all of your employees are under NDAs and that you have personal knowledge of their loyalties and motivations. The closer you are with your team members, the less chance there is of any information leak from inside.
To stealth or not to stealth (Conclusion)
Weighing the pros and cons of stealth policies can be stressful for many CEOs. There are so many factors to consider and so many things that can go wrong while in stealth that you may start to think if it is worth it at all.
Understand that you can go public at any moment during your development without losing the momentum you built up. Showcasing current progress and inviting new backers and supporters might just be what you need to make it through the development cycle. Do what is best for your startup and employees and consider implementing stealth policies carefully.
About the Author: Amanda Sparks, professional marketer, and blogger, head of content department at Essay Supply. She works as a marketer for 7 years and is passionate about developing innovative and customer-friendly solutions for brand growth. Amanda blogs for pleasure and in her free time she writes on her personal website Top Down Writer about the issues in education.
