Startup Playbook

Start-ups involve hard work, but having four things will drastically improve your chances of success: “a great idea (including a great market), a great team, a great product and great execution.” Old ideas don’t inspire customers or investors, so wait until you have an original one. Communicate clearly and say what will make you successful, such as a growing market, new technology and paying customers. Most people will hate your best ideas, but that’s no reason to give up. Keep pitching until you find someone who wants to help. Test your concept by launching it, or get a company to commit to buying first.

“At least a thousand people have every great idea. One of them actually becomes successful. The difference comes down to execution.”

Launch your product as soon as you can and show it to customers in person, as Ben Silbermann did with Pinterest. Quality is everything. Customers have to love your product so much that they tell others about it. To grow, ask users about your product, watch them interact with it, make improvements quickly and then seek more feedback. It’s better to have a small number of enthusiastic customers who will sell your product for you than a lot of lukewarm supporters. Word of mouth can be your best form of advertising, and it’s a better use of your time and energy than a “big press launch.”

“Here is the secret to success: Have a great product. This is the only thing all great companies have in common.”

Building a great company can’t be delegated, but it can be shared. In tech start-ups, you need to develop the product and sell it, so if only one of these skills is your passion, ask someone you trust to be a co-founder. As CEO, you front the company, focus on finances, ensure quality, manage teams and provide a vision. This work is demanding and requires a calm, positive attitude, so ask for help and delegate where possible. Don’t hire staff until your company is good enough to attract and retain excellent ones. Always take responsibility, respond and make decisions rapidly, and get the right things done each day.

“It’s easier to do something new and hard than something derivative and easy. People will want to help you and join you if it’s the former; they will not if it’s the latter.”

Growth boosts profits and morale and brings a sense of order, so make it a focus for the team. Talk about it often, discuss what is holding your company back and set ambitious goals. Be like Airbnb, which placed future-growth charts around the office, or like Facebook, which formed a “growth group.” If things feel chaotic and movement seems slow at first, keep it in perspective and celebrate successes, however small. Don’t focus too far into the future, but know how you will eventually become profitable.