29 October,2017 08:40 AM IST | Mumbai | Shunashir Sen
In a new book, entrepreneurs Shradha Sharma and TN Hari decode the start-up space. We pick out some mantras and speak to start-up founders about their journey
The start-up culture
Don't be taken in by values inscribed on posters at strategic locations in office buildings. Culture is always about the tacit stuff, the book says. How do you penalise wrong behaviour and reward the right person? Are decisions made in a hierarchical manner or with consultation? How are issues raised by employees addressed? These are key questions surrounding a start-up's culture.
How many founders is ideal?
The authors feel that one is too few and four are too many. This doesn't mean that if you are a sole founder, you should blindly hunt for a co-founder. All it means is that successful start-ups with sole founders are rarer, and to an investor, the probability of success is higher if the number of founders is two or three, the book says.
Key points about funding
The common belief among entrepreneurs, especially first-generation ones, is that the only sources of funding are angels and/or venture capitalists (VCs). However, the reality is that most start-ups and small businesses never receive any VC funding. Instead, use your personal funds to bootstrap your start-up. Other people's money can wait, and will follow naturally if you get your fundamentals right.
Hiring highlights
Five key points according to the book are: A) Look for people who can see things through till the finish. B) Find a clear thinker, and not just someone with a high IQ. C) Hiring a genuine person is important. Avoid cynics, bystanders and those who play the victim. D) Assess whether the candidate can work in and build a team or not.
E) Look for people who are service-oriented. How a product head deals with marketing/operations or the way a marketing head deals with the regional business heads makes all the difference.
Three key habits
Be assertive: Feel strongly for something, and don't let it go wrong by being a mere spectator.
Declutter and un-complicate: Get your direction right as soon as possible, and cut to the chase. Ask yourself and others insightful questions that help get to the root of an issue.
Envision: Envisioning is not about strategising or dreaming of the big picture in a vacuum. It is about being strategic with regard to execution.
Firing guidelines
Underperformers are easy to spot. It is those who are on the cusp who can slowly weaken the foundation of your start-up because you are not sure if they would shape up eventually or forever continue to be a drag. Also, remember that separated employees are some of your best brand ambassadors. So, treat every exit with grace.
Information courtesy Cut the Crap and Jargon (Penguin RandomHouse)
