Posts Tagged ‘Startup’

10 Leadership Traits and Skills Needed at a Startup & Small Business: Part 2

Friday, April 9th, 2010

This is the second in a two part series on leadership traits and skills that can help increase the chances of startup and small business success.  We discussed the first 5 leadership traits in a recent post. This post covers the next 5 skills.

There are literally thousands of books and probably many more blog posts on how to succeed in a start up or small business.  There are some great sites solely devoted to these topics like the Small Company Blog and StartupNation. Books on leadership in business are also everywhere including ones by like Jack Welch’s Straight from the Gut and Jim Collins who wrote Good to Great and Built to Last. This posts, however, actually tries to bridge these two areas and discuss leadership traits and skills that can help a startup or small business succeed.

In my time at Kikscore and also in conversations with friends, contacts and folks I have met at conferences like SXSW, there seems to be a consensus that the following traits really can help bolster your company:

6. Always Think about Costs:  Spending too much money too fast can kill your startup or small business. Paul Graham, a partner at well-known incubator Y-Combinator lists the failure to control costs as one of the main mistakes that can destroy your business. So it is critical that a startup or small business constantly be thinking about the costs of running their business.  This may sound like it is obvious, but I have found myself at times just saying with our startup – “We can afford that, lets go for it!”  That is dangerous thinking because if that thinking takes over your business, before you know it the business is bleeding money. So instead, for every expenditure a leader needs to ask: 1) Do I really need to spend this money?;  2) Is there a cheaper way for me to accomplish the same goal? and 3) What do expect to get out of this investment?  Then its also important to follow up and assess whether the money was in fact well spent after the fact.  Check out this post on 16 Strategies for Cash Stapped Businesses by Marissa Levin at the Women Grow Business Blog for help in this area. Also check out these 10 Money Saving Tools for Small Business.

7. Be Accountable and Demand Accountability: For startups and small businesses, it is easy to avoid accountability because teams are small and if something does not get done someone else steps in to pick up the slack.  But this lack of accountability can decrease morale, create tension between partners and lead to the business not achieving its full potential. Therefore members of startups and small businesses need to create a culture of accountability for both themselves and the team.  Amber Riviere writes at WebWorker Daily that an Accountability Partner is a good way to make sure you stay on track for your own goals.  Startups and small businesses need to make sure that each teammate serves as an Accountability Partner to each other.  Therefore you can demand accountability for yourself and also across the team.  This skill is also intertwined with Trait #2, Take & Give Feedback! Accountability goes hand in hand with accepting feedback.

8. Have Clear Milestones & Objectives for the Business: The accountability that we just discussed has to be based on something.  It based on clear goals, milestones and objectives for the startup or small business.  As we have covered before, these items are key to keeping a company focused.  The milestones and the objectives, if clearly defined, also allow the various members of a startup or the small business to stay on the same page.  As the Small Company Blog discussed in a recent post, all of this is critical in order to maintain a shared vision of the company.  It is the role of the members of a startup or a small business to measure everything that they are doing for the company against these milestones and objectives.  Even more importantly, it is critical that company goals are reviewed and appropriately updated to take into account new business opportunities or changes in market conditions.  A static set of milestones and goals can be just as deadly as none at all!

9. Over Communicate: In large companies, its almost a staple for managers to be trained to over-communicate to their staff, especially in times of change.  On the flip side, startups and small businesses can slip into the path of having information remain tightly held by founders and owners.  This is one area where startups and small businesses should strive to do exactly what management gurus recommend.  Communicate.  Communicate. And keep Communicating!!! To who you may ask?  To everyone.  Communicate with fellow partners and employees in the company.  Communicate with vendors, partners and outsourced contractors.  And finally, go well beyond so you over-communicate with your customers.  When in doubt, pick up the phone and call or email and check in with your customers. The ability to communicate is critical to a success of a leader at a startup or small business.

10. Always Seek out Guidance:  As a startup or small business owner you should come to grips with the fact that many people have been in very similar shoes as you are.  So why not seek out guidance from those other people about the challenges you face?  Chances are they may have faced the same challenges that you are dealing with right now. Paul Mullan at Bloggertone uses the great saying in a post ““To know the road ahead, ask those coming back” when imploring people to Ask For Directions! The lesson from this is tap into your network and your friends of friends.  At KikScore, we found out first hand that not only does our network help us out with guidance but through a simple 15 minute conversation with a close friend, we discovered a whole new channel opportunity for us.   Startup and small business leaders should not be shy to talk to their contacts in order to get feedback on any assortment of items including strategic goals, marketing, partnership opportunities, management challenges, expansion of operations, hiring and a whole host of other items.  All you have to do is be motivated enough to ask for the guidance!  You will be surprised with how many people will Pay it Forward!

11.  Lose the Ego: This is a quick bonus trait.  As startups and small businesses grow, the dynamics of a team change.  The dynamics of the leadership and management also change.  Often the change can be traced back to growing egos, needs to claim credit and demanding recognition.  Leaders should do everything to lose that ego.  In the end, if they are selfless in their acts and are focusing on making sure they are doing what is truly right for the business and putting aside their ego, that will help the management and the company ease that transition to a more successful and growing startup or small business.  Also it will save the business from the perils of dealing with egos and all of the baggage that is typically created from dueling egos or a super ego in the company.

So these traits and the skills we covered in the first part of this series are some of the key characteristics I have seen in my experience.  Of course, these traits and skills are not the only traits you need for success.  So please tell us what you think about the traits and skills you have seen in successful startups and small business.

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Posts Tagged ‘Startup’

Is One the Loneliest Number? Should You Start a Business with Partner?

Thursday, April 1st, 2010

You have a great idea, some money in the bank and a little extra time.  So do you go it alone and launch a business?  Or, instead, do you find partners to help you make your idea a reality? 

It’s a common dilemma.  The upside about going alone seems to be having absolute control over the product direction.  No need to reach agreement on how to approach the market, pricing or even the name itself.  For example, with KikScore, we have several meetings each week to make sure we’re all on the same page and updated on development and partner development.  If this were a sole enterprise, that time could be saved (or at least redirected). 

But being alone isn’t all sunshine and flowers (or whatever else you may find appealing).  With sole control comes sole responsibility.  If there is an issue with your business or customer service, you need to solve it.  If you are great at product design but not sales, well, too bad.  And forget brainstorming, you’re the brain and the storm.  There’s a good summary of the pros and cons in this blog post.

How about the number of partners?  Does it get more or less complicated to run your business if the number of partners increases?  I don’t have any hard studies on this, but anecdotal information (i.e. KikScore’s experience growing from 4 to 7 partners) has not been too impactful.  I think the most important thing with partners is to have an odd number….that way you don’t have stalemates on important votes.

Do you have any business partners?  Or are you going it alone?

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Posts Tagged ‘Startup’

10 Leadership Traits and Skills Needed at a Startup & Small Business: Part 1

Friday, March 26th, 2010

This is the first in a two part series on leadership traits and skills that can help increase the chances of startup and small business success.  There are literally thousands of books and probably many more blog posts on how to succeed in a start up or small business.  There are some great sites solely devoted to these topics like the Small Company Blog and StartupNation. Books on leadership in business are also everywhere including ones by like Jack Welch’s Straight from the Gut and Jim Collins who wrote Good to Great and Built to Last. This posts, however, actually tries to bridge these two areas and discuss leadership traits and skills that can help a startup or small business succeed.

In my time at Kikscore and also in conversations with friends, contacts and folks I have met at conferences like SXSW, there seems to be a consensus that the following traits really can help bolster your company:

1. Embrace Wearing Multiple Hats: Small businesses and startups have in their fabric that they are resource constrained. As a result startups and small businesses that often succeed are the ones where the owners are comfortable juggling multiple tasks that may straddle finance, marketing, technology, customer service, operations and business development. But even more importantly the owners need not just embrace the multiple hats, but also at the very same time constantly be thinking two to three steps ahead to determine when is the best time:  a) that you need to switch hats and put on another operational hat or b) when you need to put on a brand new hat in order to ensure success in a certain area of your business.  At early stages of startups and small businesses, the ability for owners to successfully wear these different hats can even determine whether a company survives or fails.  This trait also dovetails with the fourth trait below because it is also important to know when to put down the hat and instead hire an expert.

2. Take & Give Feedback: Owners and leaders in startups and small business need to embrace literally 360 degree feedback.  This is feedback from customers, from vendors, partners, investors, fellow employees, their management team and even their own families!  A continuous feedback loop from all of these parties ensures that you, your business, your product, your team and your partners are having an open and transparent conversation to put your business in the best position for success.  Instead of shying away from feedback, encourage and embrace it especially from your team and your customers.  At first it may be uncomfortable but in the end if you have some level of detachment and a lack of sensitivity/insecurity to others’ comments you can really grow yourself and become a better leader.  Continual feedback from your customers is also critical for building a great product that customers cant get enough of and keep buying!

3. Focus and Refocus: A startup and small business pulls owners and management in many directions.  As a result, it is very easy to lose the focus of your company and your plans for growth because you let other external factors drive your focus.  It is imperative to have a focused set of objectives/goals for the company.  But as a company you need to do more than just have these objectives/goals.  The best startups and small business keep these objectives/goals in the back of their mind in every action they take.  Even more importantly, they measure what they did yesterday, are doing today and will do tomorrow against these objectives/goals.  That is why it is critical that on a regular basis that startup and small business management track progress of the company and day to day tasks against these objectives/goals. Only by doing this will you be able to have a core focus and also continually make sure you refocus on the most important objectives for the business.  We outlined the importance of keeping your startup focused in a previous post here as well as methods to maintain that focus here.

4. Hire and manage outsourced resources: While your role in the startup or small business may be to wear many hats, a critical job is to know when its time to call in an expert in a certain operational area.  When it is clear that you need assistance for product development, marketing, strategy, customer service or even back office operations, its time to outsource.  Outsourcing can save you valuable time, money and help you focus on your core operations and goals of growing your business.  While you focus, your outsourced vendors can step in and help you. But too many outsourcing arrangements fail.  It is not enough just to hire a vendor to perform an operational function for you.  It is critical to the success of your business that you set expectations, train, and create defined deliverables that your outsourced vendor can understand and meet.  It is imperative to set clear expectations, actively manage the outsourced resources and continually measure the value the vendor brings to your company.  In the hiring and managing of these resources, you have to be comfortable with quickly and decisively terminating outsourced vendor relationships that are not working.  Here are a few tools you can use to help manage outsourced technology developers.

5. Be a Great Teammate: Startups and small businesses are only as good as their respective teams.  Therefore the team dynamic is instrumental in business success.  As a result for your company, it is imperative that you support your teammates and you continually deliver great results in your role on the team.  But that is not enough.  Great teammates are the ones that go far beyond what is expected and are relentless in their pursuit of a great product and phenomenal customer experience.  They step in and fill voids when they may exist but the void is actually not readily apparent.  These teammates think two, three and sometimes four steps ahead and take on the responsibility to address the issues that will come up down the road.  The best startups and small businesses are the ones where the teammates continually push each other so that they can each grow to make each other better.  That in turn makes the company and the product better.  Great teammates also mean your fans and customers are happy!  For tips on building the right team check out this excellent post on that topic.

Look out for Part 2 in this series that will be published next week.  Until then, please tell us what you think about the traits and skills you have seen in successful startups and small business.

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