What Good is a Start Up Company if You Run it Like a Corporation?
It’s not good. period. I should probably start by telling you what I think of as a corporation: 1) Sign offs 2) “strategic plans” that cannot be altered in a moment’s notice 3) High level executives who want to ‘stick with what they know’.
In my first start up, we went completely outside the box and did things that had never been done before. We didn’t listen to other people’s opinions, but like the book BLINK says, we went with our gut…and we got it right. We had belief in our product (leads), we were able to sell our product, and our CEO / COO that ran the marketing component of our business were not limited by norms. To be more precise, they went against the norms. We ended up with two things: 1) Profitability in under one year 2) A new business model for our industry. If we had been running our business trying to stick with what we knew, not changing or testing things on the ‘fly’, and not listening to the younger / less experienced folks in our organization, none of this would have occurred.
Taking “C” level executives from the corporate world and throwing them into a start up business is not a good thing unless there is balance. If you have 3 “C” level or “VP” level employees from ‘corporate’, they should be balanced by those of us who have succeeded in the ‘start up’ world. There is a reason the same people are successful in start ups again and again and again; they have great business instincts, have no fear, and are tenacious. When they try something that is “outside of the box”, they’re going to do whatever it takes to make it work. They’re out to prove their model. In many companies, they would likely be defined as “rebels” as they may be superstars, but many of their ideas are viewed as outrageous.
Start up people need freedom. They need freedom to make decisions and freedom to act on decisions within a short time frame. Not everything must be laid out in a “plan”. If something works, SCALE IT…and scale it immediately before your competitor does.
Where did this come from? Many companies I work with have solid products…not disruptive technology and neither are all business models different, but the products can certainly beat out that of their competitors. Most have high level executives who come from ‘corporate’ backgrounds; certainly brilliant and experienced in their respective areas, but ‘corporate’ nonetheless. At times, I’m hired to consult in one area that I’ve had immense success in; marketing for higher education. Under the marketing umbrella, many times I’m hired to execute on ONE aspect of that strategic marketing plan. I attempted to remain focused on that specific ‘goal’ and as I’m was executing, it becomes apparent that there are secondary strategies needed to supplement what I was doing. It’s low risk / low cost. I put it out there for the companies to evaluate. Response, “We’ll think about it”…and you could tell the companies weren’t ‘really’ going to think about it. Think about it? 1) Who thinks about anything in a start up? Think about it for 5-10 minutes maybe…and get back to me with an answer. It would be less than a $2K test. I wanted to say, “if it doesn’t work, take it off my paycheck…” but surprisingly keep my mouth shut. 2) DATA. Past data from the same exact type of campaign shows that my ‘gut’ instinct was correct. I guess I should have sat down and made a formal “business case” for what I wanted to do, but it’s a start up – who has the time?
Anyways, as a consultant – even if hired to focus on 1 area of the business…I consider it my “job” to advise on other parts as well. I don’t mind being told, “No”, if there’s a good reason…but for a cheap test, that’s 100% scalable, and historical data proves it works…I don’t want a “No” or an “I’ll think about it”. I want a “Go for it” – like a start up company with a “start up” executive team would do.