Pawel Brodzinski on Leadership in Technology

Whatever it takes to lead a team, build a product, and run a business

Tag: entrepreneurs time

  • Role of Leaders in Startups

    Who should be a leader of a startup? An easy question. One of founders. Or even better each of them. They are naturally predestined to leading role. They got the idea. They own the company. They keep all things running.

    Now the more important question: what kind of leaders are they?

    Why is it so important you ask? Well, having a great idea, being a CEO of a company and managing it on a daily basis tells you nothing about leadership. You can end up working either for a great leader or for a sick asshole. No matter which one is true as far as the startup has money leaders won’t change anytime soon.

    Because of a small size of the startup role of leaders is defined a bit differently. Not only they motivate their teams and set up a strategy of the company but they’re also personally responsible for building company culture and enabling company growth.

    In a big organization one asshole doesn’t make much difference – you either work for dozens of them or he’s going to be the only low-performer among great leaders. In a big organizations company culture is already set and it takes a lot of effort and a lot of people to change it (for better or worse). In a big organization one person won’t hamper growth even if that’s CEO who believes leadership is all about yelling at people.

    In a startup one person makes a difference if he leads the company. If he’s a sick weirdo don’t expect healthy atmosphere all over the place. If he makes working for him a hell you won’t see many long-runners in the team as everyone comes and goes as soon as they realize things just won’t change with that kind of boss. In small organizations poor leaders are the main reason why companies suck.

    If you worked for a person who is physically unable to build anything bigger than a couple dozens of people or creating healthy atmosphere at work you exactly know what I’m talking about. Big corporations can be filled with these types and they’ll manage. Startups don’t have luxury to be lead be them.

    That’s a final post of Entreprenurs Time series. I hope you’ve enjoyed it. Please leave your feedback and let me know whether I should post this kind of series in the future.

     

  • Lessons Learned: Startup Failure Part 2

    Last time I shared mistakes we made while working on Overto – startup which was closed down some time ago. Today another part – things we did right and are worth replaying next time I’ll be engaged in a startup.

    Setting up a company behind

    Setting a company, which is quite an effort in Poland, from the very beginning was really a good idea. All founders knew each other well so lack of trust wasn’t the main reason standing behind the decision. We just wanted to give ourselves a bit of motivation making it a real business. However thing we didn’t really plan was that we gained much credibility showing company’s details instead of letting people think the whole thing was created by some student during holidays and won’t be supported in any way in future. Seeing a company behind a service doesn’t guarantee you it won’t die but at least you can be sure someone cares.

    Long discussions before start

    Before launching the project we had very long discussions about what we plan to do and how we want to do it. Of course not every detail was checked but when I compare Overto to other startupish projects I was working on it was really well-thought at the beginning.

    Wide range of roles covered with our experience

    We had really good pack to run an internet service. Development, administration, user support – in all those areas we had experience from the past. There weren’t many things which could have surprise us. We weren’t forced to look for a specialist in any technical aspect of building our application.

    Working in the same place

    For some time we worked in the same building which helped much in decision-making process. We could all meet ad-hoc whenever something important had to be decided. After some time we spread among different places and suddenly we saw how much value was in working in the same office.

    Despite we invested some money to fund the project I don’t treat it as a loss. For experience I gained it was a low price. Another time when I’ll decide to jump to that kind of project chances of success will be bigger.

    First part of lessons learned from startup failure

    Whole Entrepreneurs Time series.

  • Lessons Learned: Startup Failure Part 1

    Some time ago we closed down Overto – startup I was involved in. It was a failure – pretty obvious thing since we’ve closed the service. Since we learn much on our mistakes I think a reliable analysis why the business have failed should be valuable for you. For the beginning things we screwed.

    No one working full time

    From the very beginning we knew none of people engaged is willing to leave their daily jobs to commit fully to the startup. We thought we’d able to run internet service after hours. To some point that was true. As far as nothing bad was happening with the servers and the application it was all fine. We were working on new features when we had enough free time. Problems started when we faced some issues with our infrastructure. We weren’t able to resolve issues on the fly and had several downtimes. You can guess how it influenced user experience. That also backfired on service development since we had to focus on current problems instead of adding new functionalities. Lack of person working full-time and being able to deal with maintenance and bug fixing was the most important reason of failure.

    Catching the market

    That’s partially a consequence of the previous point. Since we spent majority of our limited time on trying to keep the service running we weren’t able to catch the changing market. We needed to cover new areas to move the application to another level but we couldn’t complete ongoing development. The whole project stopped in beta version and for users it didn’t look like anything was about to change.

    Lack of marketing skills

    Thin line between life and death of internet service is a number of users. For the initial period of time the numbers were growing systematically. Then we hit the ceiling of what we could achieve effortlessly. It was a time to do some marketing. Unfortunately no one of us was skilled in that area. Even worse, no one had enough time to fill the gap. That would be another stopper if we dealt with the problems mentioned above.

    Business model

    We hadn’t checked very well a business model we set up on the beginning. We were surprised a couple of our features weren’t as unique as we’d initially thought. Ironically that wasn’t a big problem since we had a bunch of ideas how to adjust the strategy in a new situation. Anyway, you should plan to change your initial business model.

    Screwed chance of selling the business

    After we’d decided we won’t be able to maintain the service in the long run we had a chance to sell it. To make a long story short we screwed negotiations starting with way too high price. We thought more about how much work we put into the project than how much it can be worth for potential buyers. Things are worth as much as one’s willing to pay for them, no matter how long it took you to produce them.

    Waiting too long with final decisions

    I think that one is a bit sentimental. Since the service was our child we were reluctant to make a decision about closing it faster and limit losses. We’ve been tricking ourselves thinking that everything would be fine while we couldn’t get the application back to work properly.

    Second part of lessons learned from startup failure

    Whole Entrepreneurs Time series.