My buddy Jason had a GREAT post about rules for startups. Read it, love it learn it.
Of course, anyone who has started a company has their own rules and guidelines, so I thought i would add to the meme with my own. My "rules" below aren't just for those founding the companies, but for those who are considering going to work for them as well.
1. Don't start a company unless its an obsession and something you love.
2. If you have an exit strategy, its not an obsession.
3. Hire people who you think will love working there.
4. Sales Cures All. Know how your company will make money and how you will actually make sales.
5. Know your core competencies and focus on being great at them. Pay up for people in your core competencies. Get the best. Outside the core competencies, hire people that fit your culture but are cheap
6. An expresso machine ? Are you kidding me ? Shoot yourself before you spend money on an expresso machine. Coffee is for closers. Sodas are free. Lunch is a chance to get out of the office and talk. There are 24 hours in a day, and if people like their jobs, they will find ways to use as much of it as possible to do their jobs.
7. No offices. Open offices keeps everyone in tune with what is going on and keeps the energy up. If an employee is about privacy, show them how to use the lock on the john. There is nothing private in a start up. This is also a good way to keep from hiring execs who can not operate successfully in a startup. My biggest fear was always hiring someone who wanted to build an empire. If the person demands to fly first class or to bring over their secretary, run away. If an exec wont go on salescalls, run away. They are empire builders and will pollute your company.
8. As far as technology, go with what you know. That is always the cheapest way. If you know Apple, use it. If you know Vista... ask yourself why, then use it. Its a startup, there are just a few employees. Let people use what they know.
9. Keep the organization flat. If you have managers reporting to managers in a startup, you will fail. Once you get beyond startup, if you have managers reporting to managers, you will create politics.
10. NEVER EVER EVER buy swag. A sure sign of failure for a startup is when someone sends me logo polo shirts. If your people are at shows and in public, its ok to buy for your own folks, but if you really think someone is going to wear your Yobaby.com polo you sent them in public, you are mistaken and have no idea how to spend your money
11. NEVER EVER EVER hire a PR firm. A PR firm will call or email people in the publications, shows and websites you already watch, listen to and read. Those people publish their emails. Whenever you consume any information related to your field, get the email of the person publishing it and send them an email introducing yourself and the company. Their job is to find new stuff. They will welcome hearing from the founder instead of some PR flack. Once you establish communications with that person, make yourself available to answer their questions about the industry and be a source for them. If you are smart, they will use you.
12. Make the job fun for employees. Keep a pulse on the stress levels and accomplishments of your people and reward them. My first company, MicroSolutions, when we had a record sales month, or someone did something special, I would walk around handing out 100 dollar bills to salespeople. At Broadcast.com and MicroSolutions, we had a company shot. Kamikaze. We would take people to a bar every now and then and buy one or 10 for everyone. At MicroSolutions, more often than not we had vendors cover the tab. Vendors always love a good party :0
These are all off the top of my head. But they have worked for me so far.
A Couple of My Rules for Startups
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Reader Comments
(Page 3)42. coffee is for closers
I wasn't going to comment until I read this line. Mitch & Murry may have been a successful real estate office, but the working environment left a lot to be desired.
Posted at 5:31PM on Mar 10th 2008 by coffee is for closers
43. Great programmers need offices.
Posted at 5:32PM on Mar 10th 2008 by Ben
44. And one of those obsessions better be CUSTOMERS:
Who are the customers?
How are you making customers' lives better?
How will customers know you?
How will customers like you?
How will customers trust you?
How will customers buy from you?
How will customers evangelize/refer more customers to you?
How will customers buy from you AGAIN?
BringBuyers.com
Local Business Will Prevail.
Posted at 7:57PM on Mar 10th 2008 by Small Business Internet Marketing
46. GREAT POST! I am printing this and putting it on my desk as I am doing a start up now (don't worry I won't e-mail asking for money :-) most of these points I've already come up with but it's good to see them from someone else. I agree 100% with the offices, I work in an "open" environment now and love it, work is much better and you get to know more people this way, plus communication about projects are much easier. Heck out CEO sits in the middle of the office floor with no office walls and less of desk than most of the other employees. Thanks again.
Posted at 11:14AM on Mar 11th 2008 by Michael Englisch
47. For #7, I understand not wanting a CEO who insists on flying first class and wont go on sales calls...but what's the issue with him/her bringing their secretary/assistat with them?
Posted at 11:19AM on Mar 11th 2008 by mike
48. @Mark: Otherwise great blog, but I've got to call you out on the espresso comment. I distinctly remember you visiting WebTV in late 1997 and admiring the office's commercial-grade espresso machine, getting a demo from WebTV co founder Phil Goldman, along with Richard Brewer-Hay (now eBay Corp. Blogger). Mark got a demo and said the machine was a great idea and he wanted to get one for AudioNet.
Mark, Were you just being gracious then, or are have you changed your tune since? What is the straight story?
Posted at 2:59PM on Mar 11th 2008 by Aaron Burcell
49. Solid Mark. Thanks.
Posted at 3:53PM on Mar 11th 2008 by Dan
50. Great advise. I have seen some many start-up fail because of not following some of these.
Thanks
Jason Berkes
Posted at 4:17PM on Mar 11th 2008 by Jason Berkes
51. I think it's funny that some people question or disagree with Mark's advice on starting up a business. If I were to start a business, I would want the advice from someone as successful as Mark. Everything he's involved with turns to gold.
You just can't argue with the billions in his bankroll. Naysayers, pay attention...you're the one who's been found wanting.
Posted at 4:17PM on Mar 11th 2008 by Shane Hill
52. there are some suggestions that I would ad regarding employees in any organization or startups.
1. Incentives- all employees should be given incentives for doing better and more efficient work. This could include offering suggestions that may prove beneficial to the company.
Employees should be encouraged either through monetary compensation or other rewards to be the best in their department or specialty.
2. Bonuses- This should recognize employees that stand out from their peers. This would be an indirect way of increasing their income.
3. Positive Affirmations or at a boys- people like to be appreciated. Recognize an employee that stood out in all areas. Sometimes called employee of the month in some companies.
Posted at 6:30PM on Mar 11th 2008 by Thomas Zimmerman
53. When dealing with software companies, #6 and #12 go hand-in-hand, in my experience. Happy developers are caffeinated developers. Plus, like another commenter said, if you can take 5 minutes to grab a cappuccino or espresso in the kitchen instead of having to walk or drive to Starbucks, the developers save time and keep their train of thought going.
Posted at 8:53PM on Mar 11th 2008 by birq
54. Mark, having worked for a start up for 6 years now (I'm employee #3)it is inspirational to see how you have taken these rules and made them work for you. We have followed these same rules and are at the point for a successful acquistion. How do we get in front of the right people who understand our potential. It seems you always read stories about these great companies who were bought out, but you never hear how the two entities met.
Posted at 6:23PM on Mar 12th 2008 by Scott Schultz
55. I particularly love no 9! 2 is just a lovely buttress to the omnipresent 1 and 5 is a summary of one my most life changing books "Good to great by Jim Collins"
Posted at 7:24PM on Mar 12th 2008 by qleyo
56. I agree with most but #8 is absolutely wrong.
The technology used can be very relevant to what you do and your costs.
Talented people can switch between technologies very fast.
Professional experience is critical, experience with specific technologies is not.
Most important, can be critical to have all employees use same technologies in different parts of the product and not to have a wild mixture just because employee A was used to X and employee B was used to Y.
Note also that employees should be able to wade through each other's stuff relatively easily.
Posted at 1:42PM on Mar 13th 2008 by mc
57. Mark-
Great points. I'm successful at my current career and now looking for funding for a retail boutique that is related to my field. The boutique is more of a labor of love thing for me, that's why I believe in it. Some of the things you've mentioned have reinforced beliefs I have regarding the business.
Good read.
Posted at 5:46PM on Mar 13th 2008 by Mark G.
58. I have been involved with start up companies and ones that are really projecting forward. What I can say is that yes all of these are key and you did a great job covering insightful bases that larger diluted companies forget. However my number one, from experience as one and hiring one is your employees. You can find people if you take the time to get someone who will love what they do. It is completely worth going through 200 resumes in order to get the right person under you to give you drive in the right direction. I actually found that going through colleges has worked out well because you find students that are ready to get and start (*want) to work.
PR firms - thank you - I got a kick out of that one!
59. "Locate yourself in the South, or at least middle America! With technology and travel you do not have to be in big cities anymore. You save a ton of money on everything including offices, equipment and people."
Good luck recruiting talent in the middle of imbredland.
Posted at 5:23PM on Mar 20th 2008 by Ryan
60. Thanks Mark for the advice. I like the initial point you made about not even starting it if it is not your obsession and something you love. Organization and persistence are products of that initial belief.
Im currently a business partner in a start up music label in Los Angeles and working on new website projects for the company. Organization and persistence are key, and sticking with your core competencies can make your company expand in the right direction. Personally, hard work does not always do the job, you must keep challenging daily the efficiency of your work and constantly improve.
Posted at 5:26PM on Mar 20th 2008 by Mario Mendoza, Jr.
41. Great comments, Mark.
I recently started a small business in a small town and while your rules don't apply 100% to my situation at the moment, they are good rules to keep me on track as I grow my business.
Thanks.
Posted at 4:55PM on Mar 10th 2008 by YourPCDoctor