Founders almost always cite lack of money as the reason for failure, but if you look deeper, I believe the reason is more often about dysfunctional people and leadership. Sometimes it comes right back to the founder, in terms of a malaise often called “founder’s syndrome.” I’m currently involved in a startup that has been teaching me about this phenomenon and now see the true affect it has on the moral of both the employees and the company.
The quality of the relationships among co-founders is one of the most important elements of successful startups.
That’s why so many VCs and investors care not only about your pitch, your idea and your numbers but also about the interactions within your team.
They’ve seen startups fall apart time and again because of fights among founders.
Left to their own, the relationship among co-founders will deteriorate more often than not. That’s why you need to maintain and nurture them to keep them healthy, and you need to start before they shows any symptoms of illness.
Start “dating” your co-founders
Our way of keeping co-founder relationships working well is a weekly founders’ dinner.
Having our weekly tradition has helped us through numerous high-pressure situations. Instead of letting stress and tension escalate into animosities, we used the heat to forge a stronger bond among us.
Even when we were just three guys working in the same room all day (eating breakfast, lunch, and dinner together), every Thursday, we’d have our founders’ dinner.
We felt a bit ridiculous doing this founders’ dinner sometimes, but we decided that our relationship was a top priority, and we knew that forming this habit early on was important. We made a choice to be disciplined about it, and it paid off.
Here’s how we structure our founders’ dinners:
- We have a free-style conversation and talk about whatever we feel like. Whether it’s business-related or personal, we share what’s going on in our lives.
- Then we talk about our current concerns: developments in our business or in our marketplace, certain people, challenges, problems, and worries. We honestly and transparently bring up everything – not just the facts but also how we feel about these things, e.g., any stress, anxieties, tension, and so on.
- Then each of us takes turns, asking the others: “Is there anything I did last week that made you feel upset or angry? Did I create any stress or negativity in your life? Was there anything I did that confused or disappointed you? How do you feel about my performance? Are you happy with the job I’m doing? Do I inspire you or disappoint you?”
The key to success of such dinners is to bring up anything that comes to your mind, no matter how small it may seem, and give everyone the opportunity to express their feelings. Don’t swipe things under the carpet.
Nothing is “too small” to communicate
We’re often tempted to think that little things don’t matter because they’re too insignificant. But they’re like seeds that first grow roots, then stems and leaves, and eventually – poisonous fruit. Five years later, you might find yourself in a fight because all these tiny little things you thought didn’t matter turned into resentment and hatred.
That’s why you should address even the littlest of issues so that you can completely resolve them before they start to fester. The founders’ dinner is your safe environment to express and process any grievances you may have and work through any animosities that might be brewing below the surface.
Your co-founder relationship either grows or dies
As your company matures and grows, and the founders spend less time with each other and more time with their own teams, the founders’ dinners will become the sacred space where you can still experience that original sense of intimacy and camaraderie you had when you first started out.
It’s an investment that will pay high dividends over time and help you build a foundation of trust and mutual understanding. Not only will it help you maintain your relationships, but it will also help you evolve them further. As a result, your team will become stronger with each passing year.
The effect of social technologies in customer-facing processes is already significant. Our survey finds that while overall adoption of these tools has plateaued, companies can do more to measure and then capture social’s benefits.
Accepting every potential customer is a recipe for disaster, not a growth strategy.
Does the hunger for a sale ever get in the way of finding clients that are a good fit for you and your business? Any business owner can be seduced into making a sale when a prospect expresses interest, especially when you’re just starting out or are in your early years of growth. Yet, some clients can be challenging to work with, aren’t profitable or just don’t fit for a variety of reasons.
Not every sales lead is worth your time or effort, so qualifying leads is an essential part of any growth strategy. Here are some guidelines I’ve developed to qualify leads and ensure the client is a good fit for our company strategically: Continue reading
4 Tips to Boost Your Holiday Sales
With the holiday season here, entrepreneurs have the opportunity to end the calendar year positive a positive note with a few easy tips.
Branded materials can be focused on the holiday season, so that customers would be more likely to think of your service or product as a gift for family and friends. A catchy advertisement is also powerful during this time of the year to raise awareness for your product.
Another way to promote your product as a gift is to give away discounts for holiday purchases. Discounts make some people more likely to purchase the product, which will help you out during the season as well. With discounts like this, you could potentially get a lifetime customer after they try out your product for a discount.
With an uptick in urban beekeeping, Beepods is leading the beekeeping industry with premium products.
The Beepod and harvest box are high-quality products made to last the test of time.
In other industries, the premium products have the highest profit margins. For example, Ferrari has a 15% profit margin, Rolex has above a 20% profit margin, and Apple has a 20% margin as well. Their products are a combination of innovative, prestigious, and have higher customer loyalty.
The Beepod is an innovative new technology, which deserves to be known as a premium brand in a growing industry. The complete system surrounding the Beepod makes it easier for beginners to take up the hobby. Beepods products can last longer than other similar products, which can help offset the higher initial costs.
By considering all of the evidence, the profit margin is reasonable for a product like this. After customers purchase a product from Beepods, they will notice the quality and make of the product and remain loyal to the company. Beepods will be known as the class of the beekeeping industry and leader for innovative products.
In this final iteration of valuation methodologies, we will be discussing how to value a company based on the market and comparable companies. This valuation technique is the most informal of all discussed in this series but is the most efficient and cost effective. The market comparables method considers the past sales of similar companies as well as the market value of publicly traded firms that have an equivalent business model to the company being valued. To get a more accurate valuation, more than one comparable transaction should be used. This method of valuation can help identify the current value and potential growth for a company.
Comparable transactions look at multiples such as the EV/EBITDA ratio, among others, to determine a value. The difficulty with this approach is the limited availability of financial data regarding past transactions between private companies. A comparable transaction approach is generally used in conjunction with other valuation techniques including the discounted cash flow and other comparable company analysis techniques.