251 ANSWERS
Laurence McCahill, The Happy Startup School & Spo... (more)
556 upvotes by Deidre Paknad (I've founded 2 companies, been CEO of 3 venture...), Paul Jeong, Patrick Mathieson, (more)
Here are some common mistakes I come across working closely with startup teams, often first-time entrepreneurs.
1. No clear vision or purpose
This should be the starting point for any startup founder, but it’s often overlooked. Too often people dive straight into their shiny solution ideas without thinking about why they’re doing what they’re doing or considering the change they want to see in the world.
Without a clear purpose, a startup can meander along without much momentum. And when things get tough (which they inevitably will), you won’t have much to pull you or your team through. Having a clear purpose adds some real meaning to your work, and a cause that people can rally around. It can also give your brand real weight as it has a reason for being, so it’s worth spending time shaping and articulating this. Here are two examples. Notice there’s no mention of a product anywhere:
“To be the pulse of the planet” —Twitter
“To be the earth’s most customer-centric company” —Amazon
Simon Sinek points out in his renowned TED talk ‘How great leaders inspire action’ that you need to awaken an emotion with your early customers so that they feel something, come back for more and, most importantly, tell their friends about you. He points out that most buying decisions are based on emotion, rather than logic. This is where the Golden Circle comes in.
Simon Sinek’s Golden Circle framework
If your customers believe in your mission, then they’ll warm to you and listen to what you offer and how. By focusing on the ‘why?’ in business we can create much deeper connections with our audience and give our startups a better chance of success.
I recently developed a more human framework for early-stage startups to define their startup DNA and lay some foundations for a sustainable business. I’m hoping this will help to save entrepreneurs time in their hunt for success, whilst adding some more meaning to their businesses.
2. A lack of focus
If there’s one thing that startups are often guilty of, it’s trying to do too much, too soon. Having a clear focus means it’s easier to communicate what your product is and who it’s for. By trying to appeal to everyone and adding features left, right and centre, you will actually dilute your message and could end up with a complex, bloated product. Take lead from success stories such as Dropbox and Instagram by doing one thing really well.
It’s not as easy as it sounds. Often there can be pressures from customers, investors or other team members, but learning to say no is something you’ll need to get to grips with if you want a usable product. Get the core right and you’ll make your life a lot easier.
One thing we make a point of doing with each product we work on atSpook Studio is to make a list of things wewon’t do. This helps to add some constraints to the design process as everyone has a clear idea of what the product isn’t. In this way we can make better decisions and not take our eye of the ball.
It takes discipline to stay on track and not lose focus, but it’s a valuable trait that all successful entrepreneurs seem to have.
3. Design as an afterthought
Mistakenly, many early-stage startups often don’t see value in investing in design early on, believing it is a luxury which can be bolted on later like some kind of magic stardust. This is a missed opportunity (and demonstrates a misunderstanding of what design is).
In the startup world there’s been a culture of solution or technology first, whereas I believe we should be taking a more people-centred approach to building products and services. Unless the thing you’re building has real value to someone... (more)
1. No clear vision or purpose
This should be the starting point for any startup founder, but it’s often overlooked. Too often people dive straight into their shiny solution ideas without thinking about why they’re doing what they’re doing or considering the change they want to see in the world.
“Chase the vision not the money. The money will end up following you.” Tony Hsieh
Without a clear purpose, a startup can meander along without much momentum. And when things get tough (which they inevitably will), you won’t have much to pull you or your team through. Having a clear purpose adds some real meaning to your work, and a cause that people can rally around. It can also give your brand real weight as it has a reason for being, so it’s worth spending time shaping and articulating this. Here are two examples. Notice there’s no mention of a product anywhere:
“To be the pulse of the planet” —Twitter
“To be the earth’s most customer-centric company” —Amazon
Simon Sinek points out in his renowned TED talk ‘How great leaders inspire action’ that you need to awaken an emotion with your early customers so that they feel something, come back for more and, most importantly, tell their friends about you. He points out that most buying decisions are based on emotion, rather than logic. This is where the Golden Circle comes in.
“People don’t buy what you do, they buy why you do it”
Simon Sinek
If your customers believe in your mission, then they’ll warm to you and listen to what you offer and how. By focusing on the ‘why?’ in business we can create much deeper connections with our audience and give our startups a better chance of success.
2. A lack of focus
If there’s one thing that startups are often guilty of, it’s trying to do too much, too soon. Having a clear focus means it’s easier to communicate what your product is and who it’s for. By trying to appeal to everyone and adding features left, right and centre, you will actually dilute your message and could end up with a complex, bloated product. Take lead from success stories such as Dropbox and Instagram by doing one thing really well.
“People who focus exclusively on efforts that matter, succeed. It’s that simple.” Michael Lazerow
It’s not as easy as it sounds. Often there can be pressures from customers, investors or other team members, but learning to say no is something you’ll need to get to grips with if you want a usable product. Get the core right and you’ll make your life a lot easier.
One thing we make a point of doing with each product we work on atSpook Studio is to make a list of things wewon’t do. This helps to add some constraints to the design process as everyone has a clear idea of what the product isn’t. In this way we can make better decisions and not take our eye of the ball.
It takes discipline to stay on track and not lose focus, but it’s a valuable trait that all successful entrepreneurs seem to have.
3. Design as an afterthought
Mistakenly, many early-stage startups often don’t see value in investing in design early on, believing it is a luxury which can be bolted on later like some kind of magic stardust. This is a missed opportunity (and demonstrates a misunderstanding of what design is).
In the startup world there’s been a culture of solution or technology first, whereas I believe we should be taking a more people-centred approach to building products and services. Unless the thing you’re building has real value to someone... (more)
Jared Kim, I build companies
463 upvotes by Bob Ippolito (Founder, Mochi Media), Chris Heivly (Founder, MapQuest), Deidre Paknad (I've founded 2 companies, been CEO of 3 venture...), (more)
I have a few thoughts I can share on this topic. At 19, I was the CEO & founder of WeGame and just raised $3M Series A. It would have been great to have a thread like this back then :). There are literally hundreds of lessons I can share, but I'll try to keep it short.
Contrary to the stereotype, startups are a marathon, not a sprint.
The truth is, you are not going to be a billion dollar company or acquired in the next 18 months. This shit takes a long time.
Surround yourself with people you will want to work with for the next 5 years and beyond (e.g. co-founders, employees, advisors, board members, investors, etc).
Don't burn out. Take care of yourself by getting 8 hours of sleep, eat healthy, and exercise. If you don't take care of yourself, there's no way you can take care of your company in the long-term. Obviously there will occasionally be the special circumstances that will prohibit you from keeping a normal schedule (e.g. the days leading up to launch), but make those days the exceptions not the norm.
Build a great board and/or advisory board
Depending on who you raise money from, the investors who join your board may or may not have the operational experience of running/growing a company. Look for folks who have proven operational experience and have scaled a company and ask them to be an advisor. If they are amazing and you trust them, get them on your board. Ideally you want folks with experience in your industry, but even someone who has experience in a similar space could be valuable as well. There are some fundamentals of growing a company that are the same no matter what you are trying to do.
Communicate and be transparent with your team
They are in this with you too. By making sure everyone on your team is aware of everything going on in the company (both the good and bad), you are building a very important foundation of trust that is vital for any organization. I highly encourage having weekly all-hands meetings, as well as frequent 1-1s with everyone on your team until size makes it not feasible. Effective communication will keep everyone on the same page and quickly bubble up any issues that may easily be missed.
Update - I've written an extended version of this answer here: 10 Lessons I've Learned as a Young Entrepreneur
Contrary to the stereotype, startups are a marathon, not a sprint.
The truth is, you are not going to be a billion dollar company or acquired in the next 18 months. This shit takes a long time.
Surround yourself with people you will want to work with for the next 5 years and beyond (e.g. co-founders, employees, advisors, board members, investors, etc).
Don't burn out. Take care of yourself by getting 8 hours of sleep, eat healthy, and exercise. If you don't take care of yourself, there's no way you can take care of your company in the long-term. Obviously there will occasionally be the special circumstances that will prohibit you from keeping a normal schedule (e.g. the days leading up to launch), but make those days the exceptions not the norm.
Build a great board and/or advisory board
Depending on who you raise money from, the investors who join your board may or may not have the operational experience of running/growing a company. Look for folks who have proven operational experience and have scaled a company and ask them to be an advisor. If they are amazing and you trust them, get them on your board. Ideally you want folks with experience in your industry, but even someone who has experience in a similar space could be valuable as well. There are some fundamentals of growing a company that are the same no matter what you are trying to do.
Communicate and be transparent with your team
They are in this with you too. By making sure everyone on your team is aware of everything going on in the company (both the good and bad), you are building a very important foundation of trust that is vital for any organization. I highly encourage having weekly all-hands meetings, as well as frequent 1-1s with everyone on your team until size makes it not feasible. Effective communication will keep everyone on the same page and quickly bubble up any issues that may easily be missed.
Update - I've written an extended version of this answer here: 10 Lessons I've Learned as a Young Entrepreneur
Navid Zolfaghari, ran 2 startups previously
650 upvotes by Christien Louviere, Fahran Kamili, Allan Weinberger, (more)
I've got at least 50 I can share...
1. Your team is everything.
2. Solve a problem you are passionate about.
3. Never outsource your core competency.
4. Be c̶h̶e̶a̶p̶ lean but don’t be afraid to spend.
5. Build a brand, not a product.
6. Never eat lunch alone. Always be closing.
7. Ideas are worth sh*t. Execution is key.
8. Don’t take momentum for granted.
9. Learn to monetize from the get-go. [cue Notorious BIG - Get Money]
10. Set S.M.A.R.T. goals.
11. Focus. It’s easy to get carried away with multiple projects.
12. Stay uncomfortable.
13. Be metrics driven. You can’t improve what you can’t measure.
14. Utilize social media to its fullest.
15. Consistently seek out constructive feedback.
16. Know your competitive advantage and stay obsessed over your competitors and the industry.
17. Be a thought leader in the space.
18. Move quickly.
19. Talk is cheap. Deliver instead.
20. Focus on customer service.
21. Make something that people want.
22. Place a premium on aptitude versus experience.
23. Learn to say no (respectfully).
24. Trust your gut.
25. If you can’t gain traction in one year, pivot.
26. Hire people smarter than you. Don’t tell them that however. :)
27. As a founder, you set the tone for others. Don’t forget that.
28. Advisory boards suck. Instead, find 1 or 2 people who you respect greatly and have been there before. Compensate them generously for their time and learn as much as you can from them.
29. Make deliberate decisions.
30. Don’t lose sight of close friends and family. You don’t need to be a hermit just because you work a lot.
31. Don’t micro-manage.
32. Start with “why?” [See Simon Sinek: How great leaders inspire action]
33. Bring out the greatness in those around you.
34. It's better to own a smaller piece of a bigger pie than a bigger piece of a smaller pie.
35. Be humble.
36. Utilize your calendar and tasks to the max.
37. Tackle your most daunting tasks in the morning. Save the easier stuff for later.
38. Read often.
39. Workout at least 4 times a week. Body and mind are one. Oh yeah, and get your sleep too.
40. Be authentic and transparent.
41. You will hit hurdles, push through and get ready for the next. Stay optimistic.
42. Ask questions.
43. Nobody should have a personal office. Open floor plans allow best for collaboration.
44. You have 2 ears and 1 mouth. You should listen more than you talk.
45. Culture is crucial. Your employees should want to stay late and hangout.
46. Sellvalue, not products.
47. Always have an attorney glance over any legal documents. Speaking of, document everything so there is a record for all parties.
48. There is no such thing a part time entrepreneur. That’s a ‘wantrepreneur’.
49. Learn to move on if you’ve exhausted all efforts. Be honest with yourself.
50. Have fun!
1. Your team is everything.
2. Solve a problem you are passionate about.
3. Never outsource your core competency.
4. Be c̶h̶e̶a̶p̶ lean but don’t be afraid to spend.
5. Build a brand, not a product.
6. Never eat lunch alone. Always be closing.
7. Ideas are worth sh*t. Execution is key.
8. Don’t take momentum for granted.
9. Learn to monetize from the get-go. [cue Notorious BIG - Get Money]
10. Set S.M.A.R.T. goals.
11. Focus. It’s easy to get carried away with multiple projects.
12. Stay uncomfortable.
13. Be metrics driven. You can’t improve what you can’t measure.
14. Utilize social media to its fullest.
15. Consistently seek out constructive feedback.
16. Know your competitive advantage and stay obsessed over your competitors and the industry.
17. Be a thought leader in the space.
18. Move quickly.
19. Talk is cheap. Deliver instead.
20. Focus on customer service.
21. Make something that people want.
22. Place a premium on aptitude versus experience.
23. Learn to say no (respectfully).
24. Trust your gut.
25. If you can’t gain traction in one year, pivot.
26. Hire people smarter than you. Don’t tell them that however. :)
27. As a founder, you set the tone for others. Don’t forget that.
28. Advisory boards suck. Instead, find 1 or 2 people who you respect greatly and have been there before. Compensate them generously for their time and learn as much as you can from them.
29. Make deliberate decisions.
30. Don’t lose sight of close friends and family. You don’t need to be a hermit just because you work a lot.
31. Don’t micro-manage.
32. Start with “why?” [See Simon Sinek: How great leaders inspire action]
33. Bring out the greatness in those around you.
34. It's better to own a smaller piece of a bigger pie than a bigger piece of a smaller pie.
35. Be humble.
36. Utilize your calendar and tasks to the max.
37. Tackle your most daunting tasks in the morning. Save the easier stuff for later.
38. Read often.
39. Workout at least 4 times a week. Body and mind are one. Oh yeah, and get your sleep too.
40. Be authentic and transparent.
41. You will hit hurdles, push through and get ready for the next. Stay optimistic.
42. Ask questions.
43. Nobody should have a personal office. Open floor plans allow best for collaboration.
44. You have 2 ears and 1 mouth. You should listen more than you talk.
45. Culture is crucial. Your employees should want to stay late and hangout.
46. Sellvalue, not products.
47. Always have an attorney glance over any legal documents. Speaking of, document everything so there is a record for all parties.
48. There is no such thing a part time entrepreneur. That’s a ‘wantrepreneur’.
49. Learn to move on if you’ve exhausted all efforts. Be honest with yourself.
50. Have fun!
Luck is what happens when preparation meets opportunity.
- Seneca
Mark Otero, virtual goods taste like chicken
421 upvotes by Richard Ludlow (Co-Founder, AltSchool; Founder, Academic Earth),Hiten Shah, Slava Tysenchuk, (more)
Fail fast: start with a working set of assumptions and test them out in the market very fast. If your assumptions are wrong then pivot, adjust, and make a decisive decision. Remember, entrepreneurs love the process, the idea is one of many you'll have to achieving greatness, and commercial success.
Know your weaknesses: Knowing your weaknesses is as important as knowing what your strengths are, and even more important as your company grows; hire or have co-founders who are great in areas where you are weak.
Hire for passion: Hire for passion over experience. When you can afford it, hire employees who have both. Never, NEVER, lower your standards during dry hiring spells (if you do, you will learn to regret it later - always).
Get an admin assistant: As soon as you can afford it, hire an admin assistant. You need to focus on the business, not on paying the bills and running to OfficeMax for supplies. Your business depends on your capacity to execute, lead, and recruit.
Go to industry-specific events: It's amazing how many smart, passionate and relevant people you'll meet at these events.
Product focus: Create a product that's epic at something, there's nothing worse than a mediocre product that's "ok" at everything.
Exercise: Every morning, take a 15 to 30 minute walk. Have a mental meeting alone, this is your private time to collect yourself, visualize the past/present/future, and then create mental bullets on what you're going to accomplish for the day.
Know your weaknesses: Knowing your weaknesses is as important as knowing what your strengths are, and even more important as your company grows; hire or have co-founders who are great in areas where you are weak.
Hire for passion: Hire for passion over experience. When you can afford it, hire employees who have both. Never, NEVER, lower your standards during dry hiring spells (if you do, you will learn to regret it later - always).
Get an admin assistant: As soon as you can afford it, hire an admin assistant. You need to focus on the business, not on paying the bills and running to OfficeMax for supplies. Your business depends on your capacity to execute, lead, and recruit.
Go to industry-specific events: It's amazing how many smart, passionate and relevant people you'll meet at these events.
Product focus: Create a product that's epic at something, there's nothing worse than a mediocre product that's "ok" at everything.
Exercise: Every morning, take a 15 to 30 minute walk. Have a mental meeting alone, this is your private time to collect yourself, visualize the past/present/future, and then create mental bullets on what you're going to accomplish for the day.
Mandeep Singh Grang, Inquizzitive
2.2k upvotes by Brian Kidwell, Travis Johnson, Nickson Guay, (more)
Invest in people ...
developing our people and then they leave us?"
Source: LinkedIn
CFO asks CEO: "What happens if we invest in
developing our people and then they leave us?"
CEO: "What happens if we don't, and they stay?"
Source: LinkedIn
Peter Berg, Venture program lead @Visa. Fo... (more)
455 upvotes by David King (Founder & CEO, Green Patch and Blippy), Richard Ludlow(Co-Founder, AltSchool; Founder, Academic Earth), Adam Kazwell, (more)
Find a couple trusted, experienced advisors/mentors. Most people in the startup community are pretty willing to give advice and assistance, and having people to talk to who have been through similar situations can be very helpful. That said, don't be afraid to make your own path and listen to your gut.
Be really picky with your hiring, and hire the absolute best people you possibly can. People are the most important component of almost every business, and attracting the best talent possible is going to make a huge difference. Quality and quantity of output is not linear. E.g. one rockstar programmer can produce much better code than two average or slightly below average programmers. Throwing more people at a problem doesn't necessarily solve it faster, but it definitely costs more. So hire the best people. (And if you make a mistake, don't be afraid to let them go.)
Start simply, prioritize, and maintain focus. Embrace the minimum viable product philosophy ( http://en.wikipedia.org/w
Don't give away equity too easily. When you're just starting out and don't have a lot of cash, it might seem like compensating people with equity is very cheap compared to having to pay them an actual salary, but in the long run equity is one of the most expensive ways to pay people. Also, you want to have enough in reserve so that as you grow and want to attract top talent you can give them a meaningful equity incentive. And whatever you do, make sure there are vesting schedules, even for co-founders. You don't want someone walking away with 40% of the company 6 months in.
When fundraising, ask people for advice, not money. If you ask for money, you'll end up getting advice, whereas if you ask for advice it's a chance to engage people and get them excited about your company and product (which, if you're doing it right, should lead to people wanting to invest).
Be really picky with your hiring, and hire the absolute best people you possibly can. People are the most important component of almost every business, and attracting the best talent possible is going to make a huge difference. Quality and quantity of output is not linear. E.g. one rockstar programmer can produce much better code than two average or slightly below average programmers. Throwing more people at a problem doesn't necessarily solve it faster, but it definitely costs more. So hire the best people. (And if you make a mistake, don't be afraid to let them go.)
Start simply, prioritize, and maintain focus. Embrace the minimum viable product philosophy ( http://en.wikipedia.org/w
Don't give away equity too easily. When you're just starting out and don't have a lot of cash, it might seem like compensating people with equity is very cheap compared to having to pay them an actual salary, but in the long run equity is one of the most expensive ways to pay people. Also, you want to have enough in reserve so that as you grow and want to attract top talent you can give them a meaningful equity incentive. And whatever you do, make sure there are vesting schedules, even for co-founders. You don't want someone walking away with 40% of the company 6 months in.
When fundraising, ask people for advice, not money. If you ask for money, you'll end up getting advice, whereas if you ask for advice it's a chance to engage people and get them excited about your company and product (which, if you're doing it right, should lead to people wanting to invest).
Jason M. Lemkin, Co-founder/CEO EchoSign, acq'd... (more)
18 upvotes by Nic Pantucci, Hadayat Seddiqi, Ian Crosby, (more)
Budget years to make it, to get to true traction.
Not months.
Not months.
Paul Graham's advice to Airbnb CEO Brian Chesky:
When Airbnb was going through Paul Graham's Y Combinator program, the legendary programmer and startup mentor told Chesky:
People who really love a product will make it go viral, Graham told him.
"If you want to create a great product, just focus on one person," Chesky advised the crowd. "Make that one person have the most amazing experience ever."
I believe that this is the best advice any CEO can get, whether he is young or new in business.
Source: The Best Advice Airbnb CEO Brian Chesky Ever Received - Business insider
When Airbnb was going through Paul Graham's Y Combinator program, the legendary programmer and startup mentor told Chesky:
"Build something 100 people love, not something 1 million people kind of like."
People who really love a product will make it go viral, Graham told him.
"If you want to create a great product, just focus on one person," Chesky advised the crowd. "Make that one person have the most amazing experience ever."
I believe that this is the best advice any CEO can get, whether he is young or new in business.
Source: The Best Advice Airbnb CEO Brian Chesky Ever Received - Business insider
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