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  • Yeah?

  • All right.

  • god eftermiddag ochlkomna till den sista klassen i hur man startar en startup

  • So this is

  • a little bit different than every other class.

  • Every other class has been things that you should be

  • thinking about in general at the beginning of a Startup.

  • And today, we're going to talk about things that you

  • don't have to think about for a while.

  • In fact, you shouldn't.

  • But since, I'm not going to get to talk to most of you,

  • again before you get to

  • sort of post-product market fit stage.

  • I wanted to just give you the list of things that

  • you need to think about as your Startup scales, and

  • the list of the things that usually.

  • Founder failed to make the transition on.

  • So these are the topics we're going to talk about but again

  • all of these things are things that are not writing code or

  • talking to users.

  • Which means,

  • with a few exceptions that I'll try to note, you can

  • ignore them until after you have product market fit.

  • Most of these things, for most companies,

  • become important between months 12 and 24.

  • But it's really more about stage than anything else.

  • These are things that usually hit around 25 people and

  • definitely post product-market fit.

  • So just write these down somewhere and

  • look back at them when you get there.

  • So the first area

  • we're going to talk about is Management.

  • At the beginning of a company there is no management, and

  • this actually works really well.

  • Before 20 or 25 employees most companies are structured with

  • everyone reporting to the founder, it's totally flat.

  • And that's really good, and that's what you want, and

  • at that stage that is the optimal way, for product,

  • that's the optimal structure for productivity.

  • But the thing that tricks people is that when,

  • when lack of structure fails, it fails all at once.

  • And so what works totally fine at 20 employees,

  • is from zero to 20 employees?

  • Is disastrous at 30.

  • And so

  • you want to be aware that this transition will happen.

  • And you don't actually need to

  • make the structure complicated.

  • In fact, you shouldn't.

  • All you need is for every employee to know,

  • who their manager is?

  • And every, and there should be exactly one.

  • And, and every manager should know,

  • who their direct reports are?

  • You want to ideally cluster people in

  • teams that make sense of course.

  • But the most important thing

  • is that there's just clear reporting structure.

  • And that everyone knows, what it is.

  • And if you want to make changes to it people sort of

  • understand how to make changes or to hire someone.

  • Clarity and simplicity are the most important things here.

  • But failing to do it is really bad.

  • So, because it works in the early days to have no

  • structure at all,

  • and, because it sort of feels cool to have no structure.

  • Many companies are like,

  • we're going to try this crazy new management theory and

  • have no structure.

  • What you want to do is innovate on your product and

  • your your business model?

  • Management structure is not,

  • where I would recommend trying to innovate.

  • So, don't make the mistake of having-

  • >> >> Nothing but don't make

  • the other mistake of having something super complicated.

  • A lot of people fall into this trap,

  • where they think it's like you know,

  • people feel cool if they're someones manager.

  • And if they're just an employee they don't feel cool.

  • So people come up with these convoluted circular matrices

  • management structures, where you report to this person for

  • this thing, and this person for that thing, and

  • this person for that thing.

  • But you know,

  • actually this person reports to you for this thing.

  • That's a mistake too.

  • So don't, don't try to innovate here.

  • This is the first instance of an important shift,

  • in companies, or in, in, in the founders job.

  • Before product market fit your only job that matters is to

  • build a great product, right,

  • you're number one job is to build a great product.

  • As the company grows and

  • at about this, you know, 25 or so employee size,

  • your main job shifts from building a great product.

  • To building a great company, and it stays there for

  • the rest of your time.

  • And this is probably the biggest shift in being

  • a founder that ever happens.

  • There are four failure cases we see all the time,

  • as founders become managers.

  • So I want to talk about the four most common ones.

  • The first one is being afraid to hire senior people.

  • In the early days of a Startup,

  • hiring senior people is usually a mistake.

  • You just want people that get stuff done.

  • and, and the willingness to work hard and

  • aptitude matters more than experience.

  • As the company starts to scale, and about this time

  • when you have to put in place a basic management structure.

  • It is actually valuable to have senior

  • people on the team.

  • You know, executives that have built companies before.

  • And almost all founders after the first time

  • they hire a really great executive and

  • that executive takes over big pieces of the business and

  • just makes them happen the founder says, wow,

  • I wish I had done that earlier.

  • But everybody makes this mistake and

  • waits to long to do this, so

  • don't, don't be afraid to hire senior executives.

  • The second mistake is hero mode.

  • So, I will use the example of say someone that

  • runs the customer service team.

  • Someone runs the customer service team,

  • they want to lead by example, this starts from a good place,

  • it's, it's the extreme of leading by example.

  • It's saying, you know what,

  • I want my team to work really hard.

  • Rather than tell them to work hard I'm going to

  • set an example and I'm going to work 18 hours a day.

  • And I'm going to show people how to get a lot of

  • tickets done.

  • But then the company starts growing.

  • Also they have the normal discomfort of assigning a lot

  • of work to other people.

  • So the company starts growing and

  • the ticket volume, keeps going up, and

  • now they have to do like 19 hours a day, and

  • then 20 hours a day, and it's just obviously, not working.

  • But they won't stop and hire people, because they're like,

  • if I stop, even for one day,

  • we're going to get behind on tickets.

  • The only way to get out of hero mode in this case is to

  • say, you know, what?

  • we're going to get behind on tickets for two or

  • three weeks, because I'm going to go off.

  • And I'm going to hire three more support team members and

  • I've calculated based off our growth rate that this is

  • going to last this long.

  • And next time,

  • I'm not going to make the same mistake.

  • I'll get ahead of it and hire again.

  • But you actually have to make a tradeoff.

  • You actually, have to say, you know, what?

  • I need to hire more people and

  • we're going to get behind on other stuff.

  • That is the right answer.

  • The wrong answer is to stay in hero mode until you burnout,

  • which is what most people do.

  • Third mistake bad delegation.

  • Most founders have not managed people before and

  • they certainly haven't managed managers.

  • And so the way that the bad way you delegate is you

  • say hey, employee, we need to do this big thing.

  • You go off and research it.

  • Come back to me with all the data and

  • the trade-offs, I'll make a decision and tell it to you,

  • and then you'll go off and implement it.

  • That's how most founders delegate, and that does not

  • make people feel good and it certainly doesn't scale.

  • A subtle difference but really important is to say,

  • hey, you're really smart, that's why I hired you.

  • You go off, here are the things to think about,

  • here's what I think, but you make this decision.

  • I totally trust you, and let me know what you decide.

  • That's the delegation that actually works.

  • because, I think, because Steve Jobs was able to get

  • away with the former and make every decision himself, and

  • people just put up with it.

  • And every founder thinks they're the next Steve Jobs.

  • A lot of people try this.

  • But I, for 99.9% of people.

  • The second method here works a lot better.

  • And then the fourth area is just

  • a personal organization one.

  • When you are working on product,

  • you don't actually need to be that organized in terms of

  • how you run a company, and

  • how you talk to people about what they're working on.

  • But if you fail to get your own

  • personal organization system right.

  • where you can keep track in some way of what you need to

  • do, and what everybody else is doing, and

  • what you need to follow up with them on.

  • That will come back to bite you,

  • so developing this early as the company begins to

  • scale is really important.

  • Two other things that we hear again and

  • again from our founders, they wished they had done earlier.

  • And that is simply writing down, how you do things?

  • And why you do things?

  • These two things, the how and the why, are really important.

  • I mean early there is you just tell everyone,

  • employee, when you're, like,

  • sitting around, having lunch or dinner, you know?

  • This is how we think about building products,

  • this is how we push production, you know,

  • this is how we handle customer support, whatever.

  • As you get bigger, you can't keep doing that.

  • And if you don't do it,

  • someone else is just going to say it.

  • But if you write it down, and put it up on a Wiki or

  • whatever, that every employee reads.

  • You as the founder get to basically, write the law.

  • And, and if you write this down it

  • will become law in the company.

  • And if you make everyone read this as the company hires 100

  • and then 1,000 employees people will read this and

  • say, all right, that's how we do things.

  • If you don't do it it will be like random oral tradition of

  • whatever the hiring manager or their best friend that

  • they make at their first week in the company tells them.

  • So writing down how you do things?

  • And the why?

  • The why is the culture of values,

  • Brian Chesky talked about this really well.

  • Every founder I know wishes that they'd written down

  • both of these, the how and the why, earlier.

  • To just establish it as the company grows, and

  • then this becomes what happens.

  • I think it's one of the highest leverage

  • things that you can do that, that people don't.

  • All right. Next area, HR.

  • HR is another thing that most people correctly ignore

  • in the first phase of a Startup because again,

  • it's not writing code.

  • It's not talking to users.

  • But it's a huge mistake to continue to ignore it.

  • And the reason that I think most founders ignore it,

  • is they have in their mind this idea of,

  • like TV sitcom HR, you know, awfulness.

  • But it doesn't have to slow you down.

  • Actually, it speeds you up.

  • Most founders will say, out of one side of their mouth,

  • people are our most important asset.

  • And, the other side, we don't want any HR.

  • So, what they mean is, we don't want HR.

  • We don't want, like, the bad kind of TV HR.

  • What good HR means is, a few things.

  • A clearer structure, which Charlie talked about.

  • You know, a path for

  • people about, how they can evolve their careers?