Tech Business Advice from Proven Experts
October 27, 2015 Leave a comment
The tech industry at present looks suspiciously similar to the dot-com bubble, but this time around we’re calling those companies unicorns! The fact that these types of companies, named unicorns because of their rarity, are springing up so quickly is causing a lot of the worry. But that doesn’t mean that you should avoid starting your own tech start-up!
At Morgan Stanley’s recent NextGen conference, three tech business leaders with a great deal of experience—Keith Krach (previously of Ariba, DocuSign), Jyoti Bansal (AppDynamics), and Stewart Butterfield (Slack)—shared some of their insights and advice for new tech startup owners. They had some interesting things to say!
- Butterfield noted that employees need to know that your start-up won’t last forever. While many of us either lived through the dot-com bubble or experienced its aftermath first-hand, there are also many who expect that unicorn companies will continuously expand. This is a dangerous mindset for your employees. According to Butterfield, young engineers at hot tech companies today expect 20% to 30% annual pay increases, something that simply isn’t sustainable. Therefore, it is important that you share with your team that the good times won’t last forever.
- Krach advises against outsourcing executive hires, even as your company grows. Recovering from a bad hire can take a lot of time to recover from, and the consequences are exacerbated when the bad hire is someone at the executive level. To make such an important decision, Krach says that he makes between 15 and 20 reference checks each time he is making a management team hire!
- Bansal made it clear, and everyone else agreed, that you shouldn’t expect work-life balance in times of hyper-growth. “In a high-growth situation, there’s no way you can do it,” says Bansal. However, he’s not constantly working, either. Instead of lengthy vacations, Bansal said that he tends to take more 3-day breaks. In this way, he gets to step away for a little while, but not long enough that things can get out of control.
Are you hungry for more tech start-up advice? Read this article from Forbes for some further reading!