There’s no doubt about it – being a startup in any economic condition is rough, and in the current tumult, mind-bending challenges aren’t out of the ordinary. However, I, like most other entrepreneurs I’ve encountered, am a staunch optimist and thus, even in the face of hardship, seek the silver lining. Tonight, I’d like to share a few of the diamonds in the dung pile that are closest to my heart.
#1 – Living on No Income is an Advantage
The first few months/years of startup life are often waged with salaries that would make college students cringe, but later on, this austerity can be a tremendous asset as you have massively talented engineers & execs that can live on a fraction of what larger firms would need. That extra income can be re-invested in the business for a significant competitive advantage.
#2 – If You Can’t Afford Talent, You Have to Learn It Yourself
There have been many times at SEOmoz when we couldn’t afford to outsource or hire a specialist (particularly in our early years), so we had to get good at “it” (whatever “it” was) ourselves. In fact, this is how I got into SEO – we couldn’t afford great outsourced help, so I had to learn SEO to help our clients who needed the service.
#3 – Surviving Tough Times Frequently Leads to Success
Gillian & I started working together in 1997, and in 2000 felt that we had a pretty good plan for building a web design/development company. Then disaster struck the tech startup world, no one was paying 5 or 6 figures for websites anymore and our business was in for a rough ride. When we emerged on the other side in 2004, we were stronger, smarter and better prepared to take advantage of the next boom cycle. No matter how bad it seems in 2009, this too shall pass and those who emerge will be better poised for growth.
#4 – Guerrilla Marketing is Valuable No Matter How Big Your Marketing Budget Gets
As a startup, you don’t have money for big advertising pushes to brand your company/product/service, so you have to rely on word-of-mouth and the viral spread of your business. This is an incredibly valuable skill that will serve you well no matter how big your business grows. Learning what it takes to spread the idea virus will give your business a huge leg up on the competition.
#5 – Chaos Breeds Creativity
Early-stage businesses frequently have a lot of disorganization, lack of protocol and structure starvation. These are certainly hurdles you need to clear, but they’re also opportunities for improving the old ways and building a smarter, more creative, more agile company. When every role is set, “outside the box” thinking isn’t necessary – and necessity is the mother of invention.
#6 – Freedom from Rigidity Can Increase Productivity
That same lack of process that drives you mad can actually be an advantage, too. Although control and regimen do increase output in large organizations, they can cramp the style of small groups and individuals. I was always amazed by what we could do with a single designer/developer, and even more impressed by what a few guys with a pie-in-the-sky goal, a small bankroll and the freedom to find their own path accomplished last year.
#7 – No Room for Error Means Early Visibility Into Successes & Failures
When you’re locked into succeeding or collapsing, every move is analyzed for signs of impending doom. This relentless oversight means that when you fail, it’s early enough to make a course correction and when you succeed, you know exactly what went right and wrong. Fear of failure is a powerful motivator, and it breeds a culture of critical thinking that will make you better at your job much faster than a corporate structure that insulates against visibility.
#8 – Limited Hierarchy Increases Empathy & Improves Leadership
A flat organization means the founders and decision makers are close to the troops at all times. I’d argue that this makes you a better manager, as you perceive the day-to-day struggles and are never seen as aloof or out of touch with the realities of your team. There are weaknesses here, too, but knowing your people and having them know you is a powerful force for camaraderie and the fastest way to get insight about where your business is working or faltering.
#9 – Lack of Executive Bandwidth Means Internal Stars Can Shine
A popular article today examined John Gruber’s theory of Why Bad Taste Rules in Business Endeavors. He notes:
The leader with bad taste / poor design sensibility will absolutely salt out the great work of brilliant teams. They’ll add random crap to something that might already be quite good. Or will allow bad stuff to ship. Or, most likely, force a product out to market when it’s not ready. A blind adherence to meeting release dates, for instance, can essentially assure the death of quality in a product. That’s why adding product managers or project managers to an already failing project often is like a bucket of gasoline for a man on fire.
In startup life, the bandwidth to oversee projects and nitpick details is tough to come by, which seems, at first, like a disadvantage. However, on the optimist side of things, you do get to see the great work your people can produce sans filters – and when that work is remarkable, it gets to shine on its own.
#10 – Loneliness is a Rite of Passage
I’ve had a number of startup CEO friends tell me that leading a company is the loneliest job they’ve ever had. They hire friends, only to get into fights, lose them to layoffs, or find themselves needing to build distance to maintain the professional relationship. They get the sense that so few people understand their position or go through the emotional and intellectual cycles of excitement and dismay, fear and hope. But the startup community, particularly in the tech world, is forging more and more bonds and those connections are helping to make all of us stronger & smarter. Don’t take your detachment as a cue to devolve into a hermit; consider it the hazing process for entry into an exclusive new club forged by shared experiences and then reach out to your fellow entrepreneurs. You’ll find a lot of empathy and passion to connect, mentor & commiserate.
I’d love to hear any tips you’ve got to share for making the best of the oftentimes rough hand startups are dealt.
