Monday, August 17, 2009

Thoughts about Starting a Technology Business: People

Hiring and managing people in your own business is different from doing the same as a manager in a large corporation, so here are some thoughts about that.

Firstly, you will be anxious to hire people to help you, and may find it difficult to imagine that people will actually want to come and invest their futures in your improbable little venture. Don’t hire the first willing candidate just because he or she is there! There are many adequate to good people in every profession. It is rare to find great people. It is also rare to find people who want to work for a small start-up, but these are the people you have to find, and you are better off hiring no-one if you can't than to hire a journeyman or someone who would prefer the "safety" of a large corporation, but needs a job right now.

Understand and specify clearly what you need the person to do. You are starting the next great business, so anyone you hire should be excellent at their job, should be willing to work to demanding targets, does not bring baggage (i.e. avoid the brilliant but trouble types!), and is willing to accept risk for reward (typically equity), which you should be prepared to give willingly and reasonably generously to the right people!!

One important point: don’t hire just for company! Being an entrepreneur is lonely. Being an entrepreneur who hired a less than stellar person so you wouldn't feel so alone is lonely and a pain in the neck.

When you have hired, remember: you are the boss. Don’t be afraid of confronting issues. Raise then respectfully with the aim of resolving them, not beating people up. Remember you are under a lot of stress, so it will be tempting to blame other people, especially your team. That said, be prepared to fire / part company quickly, especially early on if you find one or both of you have made a mistake. It's best for everyone if done with dignity.

In all your dealings with your employees, partners, consultants and other team members, be consistent, honest and empathetic. Remember you are the boss, and the reason they are there: it’s your job to inspire them, not theirs to inspire, reassure or comfort you. Finally, lead, don’t drive! You'll get some results by threatening or manipulating people. You will get much more by making them want to do their best for you and the company.

No comments: