Lessons from the trenches - 9 ways to work better in a start-up

There is so much news now – rightly or wrongly about the world of start-ups, from fancy offices to overpaid executives to layoffs that the true essence of creating and building a viable business seems to be lost. I see a lot of rosy PR stories, often written by journalists who have never run a P&L or even darker tales of layoffs, where the rose suddenly developed thorns. Reality check – Business is tough and so is life. Get real.

I have worked with 3 start-ups in my career, first as a young man right out of college, in Bengaluru. It was the first wave of dotcoms, where a visionary Pradeep Kar gave me an opportunity to be a part of the team of an Internet portal. Few years later, not yet 30, I found myself leading an account management team in for a Web based loyalty marketing VC funded company started by two extremely passionate gentlemen from Singapore. The first company had to shut down; the second had a successful exit

I am currently running a small independent digital marketing and technology start-up services firm in Mumbai with select Indian and International clients, which is funded and owned by investors in California.  When you run a small business with little cash and a really sharp experienced investor, you learn a lot. Here are few of my lessons from the trenches

1.    Get your Finance basics in place – P&L, Cashflows, Taxation

It is downright stupid to rely on your company accountant completely or even your CA. Learn to speak the CA’s language. Develop your management accounting monthly dashboards and quickly pick your finance basics (if you were asleep during your MBA or are from non finance backgrounds). A monthly P&L looks sexy because you have booked revenue but your Cash-flow statement is the life-blood of the business and you need to know the numbers on a weekly basis. Most of us don’t have the luxury of large working capital, so monitor your collections like a hawk and drop the ego – follow up yourself. Payroll, rent and other fixed costs don’t wait.

2.   Learn to optimize Operations – Build efficiency

I believe many service companies neglect operational efficiency and often substitute it with more manpower. When you are a small company, everything is a cost that adds up, reduce wastage wherever you can. Build better processes; spend time more with each employee on their workflow, use automation where you can. Adopt some lessons from the software guys, start Stand up meetings. Learn “Scrum” (google it).  Plot the whole operations process quickly and create efficient processes

3.   Hire well, Don’t hesitate to fire too

Getting the right talent is never easy especially more so if you are an unknown company. I remember when I was with a blue chip media MNC, candidates would line up with just one call from HR. Here you are the HR and will need to really sift from the pile to get your team in place. And you need to save money on headhunters, get references from anyone you know including your team. And do let go of deadwood fast, they are bad for morale, your clients will be unhappy. We often delay letting go till its too late and an employee with a bad attitude should be dealt with fast. Don’t hesitate.

4.   Never take it easy on Customer service 

I love John Bezos’s Customer Obsessed thinking, probably a key reason for Amazon’s success. One of my early bosses had told me that business is about relationships, people do business with people they like. In the services business, it is the bedrock of the business. As business leaders of a small business, we should be available all days of the week. My team and I have taken client calls on Sundays and late nights. It is now a part of my DNA. And people remember you for it.

5.   Get your hands dirty – Learn something new everyday

I have written copy, typed the occasional content, art directed ads, made media plans, written cheques, sat with the book of accounts, followed up for payments, made client calls and created small or big presentations. If the buck stops with you, you have to do it, no time to say – that’s not my job. The job needs to get done and if you are the one who can do it then by all means do it.

6.   Build watertight contracts with suppliers including NDAs

Small businesses work with multiple vendors; you need to outsource technology, even content and other critical areas. It is important to get your contracts in place along with your non-disclosure agreements. As small companies in a hurry, we neglect these issues and I have known of cases where suppliers have held up critical work or refused to pass on data when the project is completed. Don’t get into such a mess

7.   Breathe slowly! And develop a thick skin

There will be times when you are going to be hit from all sides, I strongly suggest that take a deep breath, step back and fight another day. Learn to develop a thick skin, some businesses are difficult especially with multiple stakeholders and unless you have a thick skin, you will not survive for long. Take a long walk. Eat a good meal.

8.   Passion triumphs every time, never lose it.

I firmly believe that there is a huge difference between work and a job. I have held multiple jobs in top firms as well as start-ups. But it has always been the work that has excited as well as peers and bosses who help you grow. Understand the difference between job and work. I have also worked in toxic work cultures with egoistic leaders too, my advice is that life is short, don't be in a place that will put out your flame of passion. Any place that excites you, makes the blood flow, makes you run up the stairs on a grey Monday morning, embrace it with your heart.

9. Take time for Strategic thinking - Else face the risk of collapse!

As leaders, we are often caught in day to day operations, fighting fires, employee and client issues that we fail to take out time to look at the big picture. Where are we headed? Do we have the skills to get there? What's our long term game? This is critical else one will end up doing a lot of work with little result. Take time, maybe a few days in a month for critical thinking.

These are just some of my learning, hope it helps you all, I am still learning. I admire our start-up entrepreneurs in India and I have a deep belief that despite global competition, they will succeed. Do share your experiences too.