Category: Advice & how-to

One of the most frequent questions I receive from startup founders is, “What’s the number one piece of advice you would give me?” My answer always revolves around a fundamental principle: the most important thing for any startup, business, or company is to hire the best people. While this sounds simple, executing it is far from easy. There are numerous factors and challenges that make hiring a critical yet complex task. But for now, let’s explore just one aspect of it, inspired by a timeless story from the 1970s about the renowned advertising firm, Ogilvy. The Ogilvy Story: A Lesson from David Ogilvy David Ogilvy, the founder of the legendary agency Ogilvy & Mather, faced a serious challenge as his company grew through mergers and acquisitions. The firm was expanding rapidly, and Ogilvy became concerned that many of the senior people in the company were no longer hired directly by him. He felt disconnected from the talent shaping the future of his agency. Instead of sending a memo, holding a town hall, or delivering a speech, Ogilvy chose a symbolic gesture. One day, when the senior team arrived to meet with him, they didn’t find him in the room. Instead, on each of their tables was a Russian matryoshka doll, also known as a nested doll. As they opened the dolls one by one, they eventually reached the smallest doll, inside which was a piece of paper that read: “If each of you hires people greater than you, we will be a company of giants.” That simple but profound message became a guiding principle for Ogilvy and helped the agency recruit some of the most brilliant minds in advertising over the following decades. My Personal Experience as a Founder The lesson of hiring people greater than yourself isn’t just for large corporations; it’s equally essential for startups and small businesses. When I started my own company nearly 30 years ago, I was running a personal consulting business. The first person I hired was an accountant—let’s call her Lady M—who was about five to six years older than me. I was nervous about interviewing her because I had never conducted an interview before. However, I summoned the courage, went through with it, and ended up hiring her. As the company grew, I continued to hire engineers and specialists, many of whom were significantly older and more experienced than I was. In fact, within a year or two, I was hiring project managers who were in their 40s—nearly double my age. It was intimidating, but I kept the interviews simple, focusing on their credentials and how well they fit the role. This approach helped my company thrive. If I had restricted myself to hiring only freshers or people with less experience than me, my business wouldn’t have been able to grow at the pace it did. Why You Should Hire People Greater Than You For startup founders, it’s crucial to hire the best talent available, regardless of where you are in your entrepreneurial journey. Hiring people who are more experienced, skilled, or knowledgeable than you may seem intimidating, but it’s essential for your company’s growth. These people will bring in fresh perspectives, skills, and expertise that can take your business to the next level. David Ogilvy’s wisdom holds true for all entrepreneurs: if you consistently hire people who are better than you, your company will be built by giants. So, next time you’re hiring, don’t look for someone you can easily manage—look for someone who will challenge you and help your company excel. Always hire the best people.

In the digital age, we often hear about poor customer service experiences, especially on social media. However, I recently had an exceptional experience with Automattic, the company led by the original creator of the WordPress blogging platform. This experience provides valuable insights for technology startup founders on how to truly delight customers and build lasting relationships. The journey began with my decision to migrate my self-hosted blog, which I’ve maintained for over two decades, from an Azure Virtual Machine to Automattic’s WordPress.com SaaS platform. This article highlights the outstanding customer service I received during this transition, focusing on both engineering and billing support. Engineering Support: I opted for the “WordPress.com Migration Trial,” a complimentary service valued at $500. Within hours, a Happiness Engineer from Automattic reached out with detailed instructions on the migration process. They offered to migrate my blog, venkatarangan.com/blog, with over 4000 posts and over 10GB of assets, to their staging servers at no cost for a trial period. I was provided with a secure endpoint to safely share my blog’s password – I was impressed. Although the migration took nearly a week instead of the promised 2-3 business days, the process was seamless. Automattic kept me informed about the progress and even identified plugins that were incompatible with their platform, suggesting alternatives without prompting. This proactive approach was refreshing, as most established technology firms avoid making recommendations due to concerns about endorsements. Automattic’s willingness to go the extra mile was a welcome change. Throughout the trial period, I sent daily queries, concerned about the migration of my large blog with baggage accumulated over the decades. Despite not having paid anything yet, I received prompt and detailed responses. For instance, when I was worried about losing SEO rankings due to a URL structure change, the Happiness Engineer provided a workaround using a redirection plugin and even set it up on a trial URL for me. They also guided me through DNS setup on Cloudflare, highlighting relevant sections for my case. Typically, tech support would direct customers to lengthy documentation, but Automattic’s personalized assistance stood out. During the migration, they noticed a new blog post I had published that hadn’t been migrated. They reminded me to manually publish it to the new staging setup, ensuring no content was lost. This level of attention to detail and care was beyond my expectations and demonstrated a commitment to customer satisfaction that is rare in the industry. After testing the staging site, I decided to proceed with the “WordPress.com Business Plan” for two years, costing USD 396, which was after discount and including Tax. The hosted plan relieved me from maintaining the Virtual Machine in Azure, updating software, and handling backups, as Automattic took care of everything. Additionally, I noticed that Jetpack subscribers from my old site were not reflecting on the new site. Automattic quickly identified the issue, transferred the subscribers, and deleted the redundant free site to prevent future confusion. Their proactive problem-solving approach, rather than directing me to self-service through export and import, was a refreshing departure from the norm. Billing Support: A fortnight after the migration, I discovered that Automattic offered special pricing for India, significantly lower than what I had paid. The Indian pricing was INR 14,499, equivalent to about USD 172, which was less than half of what I had initially paid. Feeling sad I overpaid, I contacted their billing support, explaining my situation as an Indian citizen who made the purchase from India using an Indian credit card. To my surprise, Automattic responded promptly, which started “Thank you for laying out all the details for me. I can see where you’re coming from.”, and offering a full refund of $396. They also provided a grace period to renew the plan at the Indian pricing, which was 43% lower. I took the offer, received the refund and a free fortnight of usage, allowing me to pay the reduced Indian price. This level of customer care, including a fortnight of service for ‘free’, was unprecedented in my experience with technology companies. Most companies would have cited policy restrictions, but Automattic’s flexibility and understanding were commendable. That’s the reason I decided to write this long article in praise of the Happiness Engineers and Automattic, led by Matt Mullenweg. Learnings for Founders For startup founders, this experience underscores the importance of exceptional customer service.  Their approach transformed a potentially stressful migration into a seamless experience, earning my loyalty. Here are three key actionable practices from this, that you can implement in your business: Proactive Communication: Automattic kept me informed at every step, anticipating potential issues and addressing them before they became problems. By offering solutions and alternatives without waiting for me to ask, they provided a refreshing and reassuring experience. Personalized Support: The assistance I received was tailored to my unique needs, rather than being generic. Automattic understood my concerns and provided specific guidance, going beyond standard procedures (SOP) to ensure my satisfaction. Flexible Policies: When I discovered the pricing discrepancy, Automattic was open to adjusting their policies to accommodate my situation. They offered a refund and a grace period, showing empathy and understanding, which built trust and strengthened our relationship. By adopting these practices, you can create a customer-centric culture that fosters loyalty and satisfaction. Footnote Thank you, Automattic, for this remarkable experience. For those interested in learning more about this innovative company, I recommend reading “The Year Without Pants” by Scott Berkun. This book offers a deeper insight into the culture and practices that make Automattic a leader in customer service.

Important Message for Business Leaders

In today’s video, we address a heart-wrenching issue affecting business leaders and employees alike. The tragic news of a 26-year-old EY employee passing away due to work pressures is a reminder of the mental health crisis many are facing in the workplace.

Did you know? In 2022 alone, over 11,000 people in India lost their lives due to work-related stress. This includes more than 2,500 public sector employees and 2,000 government workers.

As entrepreneurs and leaders, we hold a significant responsibility in shaping a healthier work environment. One of the most effective ways to do this? Delegate extensively.

By delegating tasks:

• You empower your team
• You reduce your own stress
• You create a culture that values working smarter, not harder

But remember, delegation doesn’t mean ignoring responsibility. Stay attuned to your workplace, monitor employee satisfaction, and build an informal buddy system below management to stay connected with the pulse of your team.

Lastly, to every employee: You always have a choice. If you’re in a toxic environment, raise your voice, explore your options, and prioritize your well-being.

Let’s work together to create healthier, more supportive workplaces.

Meetings are a cornerstone of business operations, but recent surveys reveal a concerning trend: a staggering 90% of attendees admit to daydreaming during meetings, while 73% confess to multitasking. These numbers beg the question: Are meetings truly effective? As founders and leaders, we understand the necessity of meetings in coordinating tasks, aligning goals, and driving progress. However, the challenge lies in ensuring these meetings are productive and engaging. The solution? Reassessing the structure of your meetings and knowing when to opt for one-on-one interactions over group sessions. Understanding Meeting Dynamics Group meetings are designed to facilitate discussions among multiple participants. However, if you notice that most interactions are happening between you and individual team members rather than among the group, it may indicate that a one-on-one meeting would be more appropriate. Here’s how to assess the need for one-on-one meetings:

1. Observe Interaction Patterns: During a group meeting, if the conversation predominantly occurs between you and specific individuals rather than among the team as a whole, it’s a sign that those interactions could be more productive in a one-on-one setting.
2. Evaluate Discussion Relevance: If certain topics or issues only pertain to a subset of attendees, consider handling these discussions in one-on-one meetings to keep the group meeting focused and relevant for everyone involved.

The Benefits of One-on-One Meetings One-on-one meetings offer several advantages, especially in today’s remote work environment:

1. Personalized Attention: They allow for more personalized and focused conversations, which can lead to clearer understanding and quicker resolution of issues.
2. Enhanced Engagement: With fewer participants, individuals are more likely to stay engaged and contribute meaningfully to the discussion.
3. Increased Flexibility: One-on-one meetings can be scheduled with greater flexibility, accommodating different time zones and work schedules, which is particularly beneficial for remote teams.
4. Stronger Relationships: Regular one-on-one interactions can strengthen relationships between team members and leaders, fostering better communication and collaboration.

Implementing Effective One-on-One Meetings To make the most of one-on-one meetings, keep these tips in mind:

• Prepare an Agenda: Outline the key topics to be discussed to ensure a productive conversation.
• Set Clear Objectives: Define what you hope to achieve from the meeting to keep the discussion focused.
• Follow Up: Summarize key points and action items at the end of the meeting to ensure accountability and progress.

Conclusion While group meetings remain an essential aspect of business operations, recognizing when to shift to one-on-one meetings can significantly enhance their effectiveness. By evaluating interaction patterns and adapting your meeting strategy, you can boost productivity and ensure that your meetings truly serve their purpose. So, the next time you plan a meeting, consider whether a one-on-one session might be more effective. It could be the key to transforming your meetings from routine to truly impactful.

In 2024, securing funding for startups is increasingly challenging. Gone are the days when investors would “spray and pray,” distributing funds broadly in hopes that one or two ventures would succeed. Today’s investors are highly selective, choosing to back founders who demonstrate laser-focused strategies and clear visions. To illustrate this point, let’s explore the contrasting approaches of the Tata Group’s fashion brands, Zara and Zudio. The Zara Experience: Premium and Luxurious At one end of the spectrum is Zara, a brand that Tata has partnered with from Spain. Walking into a Zara store, customers are greeted with an ambiance that screams luxury. The interiors are meticulously designed, the product range is diverse and stylish, and the overall shopping experience is premium. Everything about Zara aligns with a high-end market positioning, appealing to customers seeking luxury fashion items. The Zudio Approach: Value for Money Contrastingly, at the other end is Zudio, another brand under the Tata umbrella. Zudio stores are characterized by minimalistic interiors, fewer product selections, and a no-frills shopping environment. The air conditioning might be less noticeable, and the focus is on providing value-for-money products. This approach caters to a different segment of the market, targeting cost-conscious consumers who prioritize affordability over luxury. Focused Strategies for Different Markets Despite being part of the same conglomerate, Zara and Zudio operate as distinct entities with their own unique strategies. This clear demarcation and focused approach are crucial in addressing the needs of their respective target markets effectively. Tata’s ability to run these brands as individual companies, each with a specific focus, is a lesson for founders seeking funding in 2024. The Lesson for Founders For entrepreneurs in today’s competitive funding environment, the key takeaway is the importance of focus. Investors are looking for founders who can clearly define the problem they are solving and execute their vision with precision. Just as Tata manages Zara and Zudio with distinct strategies tailored to different market segments, founders must hone in on their specific niche and demonstrate a deep understanding of their target audience and market dynamics. In 2024, attracting investor interest requires more than just a good idea; it demands a focused approach and a clear vision. By learning from successful examples like the Tata Group’s management of Zara and Zudio, founders can better position themselves to secure the funding they need. Focus, clarity, and strategic execution are the cornerstones of gaining investor confidence in today’s selective funding landscape.

As a founder myself, I’ve learned that being a startup CEO is not about glamour; it’s about grit. It’s essential to acknowledge that this role can be incredibly challenging and thankless at times. So, buckle up and grow a thick skin. While there is scope to learn all functions, here I’ll focus on your personal leadership rather than broader operational strategies.

In most startups, your co-founders and initial hires are likely to be your friends and people you know well. You don’t hire your enemies. Be aware of this fact. As a result, what happens at work may affect your social life and friendships. So, it’s crucial to have clear rules on decision-making and finances. More than profit sharing, it’s important to have clear ideas on who will fund the losses. In my experience, it’s best to state clearly that the CEO (whoever it is) has the veto power and everyone should accept it from day one. This same friendship-work equation continues with new hires. If they see the CEO playing favorites with friends, it will affect morale from the start.

Being a CEO is a lonely job. Not everything happening in the business can be shared with everyone. It’s not hiding; it’s ensuring the team can focus on their work without worrying about other things. Get used to this ‘selective’ sharing. Have one or two advisors available for quick calls to help with tough decisions or to guide you when you’re new to an area and have to make a quick decision.

Learn to make quick decisions when needed and own up to the consequences. Without making mistakes, no CEO has learned the job. You can never be a perfect CEO from the start.

You have to be a multitasker par excellence. Just when you’re writing an important proposal, problems like the coffee machine running out of refills or a cloud subscription stopping due to a credit card issue will land on your desk. Be mentally ready to handle it, not necessarily by yourself, and return to the proposal without missing a beat or losing your temper.

Lastly, have “me” time for personal learning and relaxing. I took up blogging twenty years ago as a way to offload work-related items to my blog. Over the years, I have written over 4,000 posts on various subjects, including movies I enjoy, books I read, and places I visit. It helps me a lot in de-stressing and decluttering my mind.

Remember, one of the main perks of doing a bootstrap startup is the fun you and your co-founders will have during the journey. So, don’t miss it by having too many rules and being rigid. At the same time, laying a few ground rules will help the startup and your friendships not impact each other.