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It IS still a startup!

Great chat last week with the proud manager of a young company, that has made the gap in becoming profitable now. Not easy, and really a great achievement.

Bit strange however when he told me about all the changes he would now make in the company…

I have witnessed this behavior before. Some people that run startups think the battle is over once results have changed colors. It’s still a startup, it still lives because of the good care-taking of the startup, and there is no reason to change that:

  • If it’s the chaotic culture that got you trough the first phase of existence, it might be the power that maintains the growth. Now is not the time to start drastically changing your operational culture.If you need to tune, go easy, one step at the time. Change management is a fine art.
  • If good cash management was a key success factor in the survival, this effort should not stop now. Stay sharp and conservative when spending money (I will come back on this when talking about metrics in startups in a later blog). Explain your staff why you don’t start spending (even when we are making a profit)
  • If the effort of your staff has made it possible to become more profitable, and you believe that you must now spend some money: they might be the first to think about. Celebrating success is one of the most important activities in any organisation, and now might be the time to thank all that brought the great venture to this important stage in its still fragile and yound existence. But I believe that you can do this in so many different ways than just giving them cash…

A newborn baby will have different needs than the child you leave for the first time in daycare, but it still needs CARE and still is extremely fragile. Having the first cash coming in might be a more dangerous situation for the company, than the time we were all creative and could do without, as soon as you stop managing the start-up way, and think to soon corporate spending has arrived.

If you accept it still is a startup now, you’ll find that corporate life will come one day – in the future.

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This entry was posted on Friday, May 13th, 2011 at 14:10 and is filed under business, entrepreneur. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

Written by: Koen Blanquart

One Response to “It IS still a startup!”

  1. Meetings during office hours | Creative Critics Says:

    [...] I talk to some young folks that are about to startup their own company, they seem to have this fear of cold calling senior managers, potential mentors, [...]

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