Here is a roundup of 9 tools for growing a company from 1 to 50 employees:
Tool #1: Revenue. Apparently there are business models that are proponents of not making money right away, but I don't get them. Cash allows an entrepreneur to hire people and resources to get things done. At first it is all about increasing velocity on the sales -> product -> sales cycle. Successfully executing that cycle then requires supporting activities... billing,finance,IT infrastructure, etc
Tool #2: Options and Environment. Finding and motivating employee #2 can be very challenging. Options help (though less so in the midwest). The right person for this role will be very interested in equity. The right option plan will provide long term incentive when cash is hard to come by. More importantly, the startup environment will be very attractive to the right person. Meeting in coffee shops, lots of responsibility, and flexibility in direction should inspire rather than frighten early employees.
Tool #3.Throw away the partnership documents. Get a handshake you can trust. I swear we spent 100 hours arguing over the minutiae of our partnership document. This was largely based on several people I knew who had been screwed by their partners. The lesson to be learned is *not* about getting a long contract. In the end, you just need to pick the right partner. Because, if they want to screw you over, they'll find a way regardless of what papers have been signed.
Tool #4. Don't hire just good people, hire good startup people. A good
startup employee has a few key attributes. Look for people that have a
lot of adaptability. They take initiative. They are good with
ambiguity and change. Look for these kinds of things in the interview
process. Give a preference to candidates that follow up and ask (the
right) questions.
Tool #5. Hire deliberately. Never, ever, ever
hire the wrong person because of pressure to fill a role quickly. It
is always, without exception, under every case imaginable better to
wait on the right person than to rush into a bad decision on hiring.
In the end, your company is only as strong as its people.
Tool #6 Rock Band. Ain't nothing like playing some classic rock and drinkin' a PBR to bring a group of people together. Sure, sure, we got a little carried away. In fact, we are still waiting for some other group to put up a decent challenge to our rock band supremacy. You can all go pound salt. We rock.
Tool #7 the monthly board/employee meeting. Using content that is as similar as possible, make sure that the board of directors and every employee at the company is informed. Each person knows the strategic plan of the business. Each person knows the historical performance of the business. Each person knows the projected growth of the business.
Tool#8: The bimonthly management team meeting. This is a meeting where I invite smart people to call bullshit on me. Actually, that only happens sometimes. Mostly, we just meet and talk about the priorities and work flow of the upcoming month. Doing this twice a month provides continuity and clarity. Its amazing how often the statement... "I thought we all agreed on this last month" comes up. Sure, we all agreed, but not on the same details. This regular meeting eliminates misconceptions and aligns expectations. "Muy Bueno" as they say in France.
Tool #9: Patience. Be slow to make judgments. Deliberate in actions. Patient in execution. These things are critical. Employees are trying their hardest to accomplish their goals. Trust them. Give them time.
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