When youre little, you dont think what the problem is at large. Really want to be a big. But it is essential that in the process of business growth not to repeat the mistakes usually make great company. These errors are very expensive and very difficult to fix.
So it is better not to do. About this was my performance at the LeanStartUp this week. Share your presentation with my comments and additions to the sometimes not very informative slides. Large companies encumbered assets, a large farm.
Each property requires attention and generates costs. While the extent of these costs is sometimes difficult to assess. They are clinging to each other and as a result — the company is ineffective. Therefore if we do not take the property and not to have — better not to have.
Todays technology and the market enable you to give up possession of many, that seemed sacrosanct from the point of view of necessity of ownership. Since mid-September I made the decision to abandon personal car and driver and completely switched to a taxi service. The decision is justified by practical and economic considerations. Digital is coming..
To hold your corporate and personal car drivers makes no sense. Most of the time they toil in the standby state, and the costs involved when switching to a taxi service may be reduced by 50 percent. This is another example of how the world is changing. What was not possible in the past, becomes reality.
In large companies people get used that to engage consultants, to turn to others for confirmation of sight and approval. Its such a latent shift and work, and the responsibility for it on others. The involvement and responsibility of employees in large companies suffers greatly. You dont want to.
Therefore, the main rule novice startups — follow 120%. Sometimes it seems that consultants and other external guys — very smart and knowledgeable. And they have what you need. But, actually, not all what is offered from the outside; you really need, and many things you will do much better. Just because doing it for themselves.
Besides, when you make it yourself, you learn much faster. During independent work you will learn a unique role, learn new skills. So create your own blog or cook what you present.
Presentations I always do myself, although, of course, in company, there are at least a couple dozen people who could do it for me. But their thoughts and their vision needs to Express himself. Besides, when you do something for himself, he begins to better understand the subject.
Large companies believe that they have enough resources to do everything. And they lose focus. The system is complicated and often lost control, and costs are rising. A startup need to keep the utmost focus because so much resources and no safety margin too.
An example of the ultimate focus for me is the management Snapchat. Evan Spiegel, co-founder and CEO of Snapchat, was we in “Beeline” guest, and we discussed various ways of cooperation of the operator and Snapchat. But every time we offered to work, but it required fairly serious settings Snapchat and the emergence of a small but additional functionality, Evan was adamant. He firmly believes that we must maintain the utmost focus and the “purity” of the product.
This helps him to grow among users. And the company of the same application already grown to a valuation of 15 billion dollars. Work in large companies sometimes relaxes. Have your routines and everything there is subject to relatively measured pace of a big organization.
It seems that everything is working and getting up early are not necessary (although there are always exceptions). But the work of people in the start — up is an entirely different state. It is necessary to slave from morning until late at night. From dawn to dusk. Otherwise it will remain a startup.
Or even worse — a failed startup. This is my set alarms on my phone. At 7 am every day I go to work. Although run by a big company, but we have a lot.
So as to get up in the correct start — up very early. And work. In large companies always have larger budgets and more or less stable (although it also happens in different ways) — and this badly corrupts people. Employees of large companies is quite atrophies the brain in search of cheaper and even free options of what you can really do for free.
Moreover, in a large company, if it is free, it is considered that poor quality or some bullshit. But startups need to combat atrophy of the brain and try to preserve the culture is to find a free or extremely low-budget solutions to the problem. And 90% of them really can be found.
Even in our great company JSC “VimpelCom” (you all know her as “Beeline”), we will use free or extremely low cost solutions. Because its cheap, really convenient and fast to implement. Well, a freebie you can always find. In any company you need to keep sober.
That which always, in addition to a bright future, and sees the risks and know how to count money. Big companies are the main financial Director of a service budgeting, perfomance management and the like. In a start-up do not need to create a great service. But someone with a sober head, which will periodically return the whole team down to earth and will not give money to blow, definitely need.
Only the power of it all dont give — or do not fly. There is an important balance between imagination and entrepreneurship, a sober view of things. From my personal experience, to find a great Finance Director and man with a sober head — very difficult. We in “Beeline” works best CFO, combining and hard look and understanding of the laws of business development.
Well, at home I have the role of a man with a sober view of things does my wife. And I am calm for this part — both at home and at work. Large companies grow so big that you forget its purpose. They have so many internal problems and concerns such as negotiations, meetings and so forth, that they forget why they work.
And they work for the customer. Sometimes in startups keen on the idea of team is so excited about his idea, and the fact that they got together and so cool that you can completely forget about your destiny. And the purpose of start-UPS and large companies one — to meet customer needs.
And if your brilliant idea to the client not needed — your startup will be zilch. So first think about the customer and what need do you satisfy. And make sure that he chose you — because it is convenient, fast, cool and fun. Without this, your startup or your team is not needed in this world. Just like big companies — they lose their Client and will inevitably die.
Spacious offices for big companies. And then, if a secret, not for everyone. The problem with big companies is the fragmentation and disunity. People sit in different offices and on different floors.
In different rooms and behind closed doors. And from this much is lost. The beauty of startups — all next to each other and in constant communication. This is a huge plus, and the longer you save, the later move to separate rooms and go to different floors, the better.
In large companies appreciate the communication, but to give up their offices dont want. Status, convenience and all that. But in the “Beeline” we are trying to move in the opposite direction. And I from your big, but of the Cabinet, moved to open space.
Large company, working in established markets, keep yourself in shape by analyzing its market share, constantly comparing with competitors. It really “sticks” and makes you think faster and more interesting. Otherwise, any large company starts to live by itself, and its speed slows down dramatically.
Look at the monopolistic industry or where the state dominates — the speed of life and vitality in them, as a rule, quite low. For startups, the market share doesnt matter for two reasons. First, their share in actual market scanty, second — market does not exist. So somehow need to keep myself in good shape besides being in shape keeps constant lack of money.
To keep the tone in this case is not easy. Add energy and tone you can, taking part in some competitions and contests. Just dont need to participate in all — select the best of the competition and participate. Themselves rate, get a lot of questions and comments that will certainly make you think, well, advertising yourself will make a good.
Unless, of course, well prepared. Large company therefore considered great because they employ a huge number of people. Its cool, of course, but it is a huge source of worries and problems. Patterns become more complex, the information between levels is distorted, the right people to control other people, we need people to manage people who manage other people, systems of control of people and so on and so forth.
Each new person in the startup (or any company) is the risk and the source of potential problems. Of course, the new person contributes something. But the balance between risk and benefits are often not in favor of the latter. So expand only in an extreme case, a new person take only when absolutely sure that he really need and can do what you really need, and only he can do it.
If you follow these tips will not very quickly turn into a traditional organization with their big problems and the receipt of such letters, as shown in the figure, is not far off. And this is a sign of structural problems in the organization. Startups such problems do not last long.
As a bonus, to 10 tips will add another solo for the leader of a startup. It is very important what goals are set before the organization and what are the goals in the mind of a leader. If he thinks that will become a millionaire or more, a billionaire, is the probability that he will become, tends to zero.
We must think about product, about the customer, about their company and the achievement of results — in short, we must think about the work. Then the money and the rest will come. Only later. Otherwise, if ever.