David Cummings on Startups

Author: David Cummings

  • Video of the Week – Think Fast, Talk Smart: Communication Techniques

    For our video of the week, watch Matt Abrahams in his video Think Fast, Talk Smart: Communication Techniques. Enjoy!

    From YouTube: Communication is critical to success in business and life. Concerned about an upcoming interview? Anxious about being asked to give your thoughts during a meeting? Fearful about needing to provide critical feedback in the moment? You are not alone! Learn and practice techniques that will help you speak spontaneously with greater confidence and clarity, regardless of content and context.

  • 4 Ideas for Employee Feedback

    Recently I was listening to a CEO give a talk and he mentioned how listening to employee feedback was one the most important things he does every other week. Naturally, this got me thinking about the many different ways leaders solicit feedback and ideas.

    Here are seven ideas for employee feedback:

    1. Facilitate bottom-up daily check-ins across the company
    2. Use a UserVoice idea exchange and let employees submit ideas and vote up their favorites
    3. Hold a weekly town hall where any employee can ask questions or provide feedback
    4. Run an anonymous quarterly employee survey using Survey Monkey asking for feedback and capturing an employee net promoter score (NPS) (note: some people think anonymous surveys are bad because it is a crutch for cultures that aren’t healthy enough to share things out in the open while others find it to be very valuable)

    Employee feedback is a critical part of healthy organizations. Try these four ideas and find out what does, and doesn’t, work for your organization.

    What else? What are some more ideas for employee feedback?

     

  • Companies Grow as Fast as the People Grow

    One of the important leadership lessons I learned at Pardot is that companies grow as fast as the people grow. Some companies have a preference for bringing in experienced people from the outside that already have grown to the necessary level. Other companies have a preference for promoting from within and looking to grow their own people. Have a high growth company? Here are a few things to keep in mind:

    Entrepreneurs would do well to build an environment that recruits, trains, and grows people as fast, if not faster, than the growth of the business.

    What else? What are some more thoughts on the idea that companies grow as fast as the people grow?

  • Balancing Quantitative and Qualitative Information

    As a technical, product-focused entrepreneur, I find more comfort looking at quantitive metrics and data as part of growing a business. Of course, that’s not the full story. There’s a wealth of qualitative information that needs to be assessed such that decisions are made with both quantitative and qualitative information.

    Here are a few thoughts on balancing quantitative and qualitative information:

    • Startup stages, like idea and seed, have such small sample sizes that quantitative data is often minimal (still important to track)
    • Besides tracking the operational metrics, look for ways to answer the “so what” questions (meaning, often times you have to dig deeper and figure out underlying trends)
    • Strong internal meeting rhythms ensures there’s a time and place for continuous qualitative feedback
    • Leadership tools like the weekly team update incorporate both quantitative and qualitative information

    Building a successful business requires both quantitative and qualitative information. Ensure there’s a healthy balance with the two and build systems to track the data and the human feedback.

    What else? What are some more thoughts on balancing quantitative and qualitative information?

  • Challenges from a Poor Initial Target Market

    One of the challenges I’ve seen is when an entrepreneur gets positive initial feedback from their target market on a new idea, builds the product with customer feedback, and then realizes the initial target is not actually the right market to go after. Thankfully, this realization almost always arises in the race to 10 unaffiliated customers as paying customers provide the best feedback.

    Here are a few challenges that might indicate a poor initial target market:

    • Sales cycles, even when it’s a perfect fit prospect, are substantially longer than expected
    • Customer budget isn’t commensurate with the complexity of integration (e.g. the customer can only pay $250/month but it will cost $10,000 just to set things up)
    • Product usage is sparse, even after paying for the product (likely indicates a nice-to-have for that market)
    • Even with regular product usage, customer feedback and feature requests are limited, indicating lack of engagement and value

    Once it’s clear that the initial target market isn’t right, it’s time to either change markets (typically go up-market, which has its own set of challenges) or to change product directions (sometimes a pivot and sometimes a heavy iteration). They key is to move fast and work to find product/market fit followed by a scalable customer acquisition process as quickly as possible.

    What else? What are some more challenges from a poor initial target market?

  • Founder DNA in a Company

    One of the most important early elements of a startup is the imprint of the founder DNA on the business. As the company grows, and more team members join, the original DNA continues to permeate all aspects of the business.

    Here are some areas of the founder DNA in a company:

    Of course, these aspects evolve over time but elements of the initial founder DNA stay on forever. Founders would do well to be intentional about the type of organization they want to create and nurture it over time.

    What else? What are some more areas of founder DNA in a company?

  • 8 Sales Lessons for Entrepreneurs

    Last week I was talking to an entrepreneur that’s in the process of scaling out his sales team. Scaling a sales team is much harder than it sounds. Sales people, as you’d expect, are great at selling themselves, but not always great at selling to prospects. Then, sales reps often want to be sales managers, and managing people is a very different skill than selling to people. Here are seven sales lessons for entrepreneurs:

    1. Learn modern BANT qualifications
    2. Do the match to ensure inside sales makes sense
    3. Align special incentives with desired outcomes
    4. Plan out the first 30 days for a new sales rep
    5. Develop a sales playbook
    6. Model the time it takes to ramp up sales reps
    7. Hire reps ahead of plan at scale
    8. Implement a sales development process

    Bonus: Every entrepreneur should read these four sales books.

    Entrepreneurs need to understand sales even if they aren’t a “salesy” person. Start with these eight sales lessons and read the four books to build a solid foundation.

    What else? What are some more sales lessons for entrepreneurs?

  • Video of the Week: What is leadership?

    Several years ago I enjoyed hearing David Marquet give a talk at a YPO event. For our video of the week, hear him talk about his experiences as the captain of a nuclear submarine and lessons learned on leadership. Enjoy!

  • Stage-Specific Startup Advice

    After yesterday’s Growth Stage Entrepreneur Summit, one of the entrepreneurs mentioned to me how even though he’d heard a few of the best practices before, now that his company was much bigger, the ideas resonated and he was going to implement them. This got me thinking about the importance of stage-specific startup advice. When hearing advice, apply a startup stage lens and ask these questions:

    • Is this advice for idea, seed, early, or growth stage startups?
    • Is this advice relevant for us now or do we need to be at a different stage?
    • What’s the context of the size and scale of startups this person has worked at in the past?

    The next time someone offers advice, put it in the context of a specific startup stage.

    What else? What are some more thoughts on stage-specific startup advice?

  • Takeaways from the Growth Stage Entrepreneur Summit

    Earlier today we had a Growth Stage Entrepreneur Summit at the Atlanta Tech Village. The idea was to get a group of 15 entrepreneurs together that have 20 – 100 employees and share best practices for scaling a startup.

    Here are a few takeaways from the presentations and discussion on scaling a startup:

    • Plan for different “missions” as the startup hits different stages
    • Know that not all early team members will be able to make the transition to the next stage as the business grows
    • Spend more time on communication as the company grows (alignment and focus gets harder and harder)
    • Move from generalists to specialists (e.g. hire specialists like sales engineers to make your best sales reps even more productive)
    • Build a Simplified One Page Strategic Plan and update it quarterly
    • Ensure a culture of accountability
    • Hire for culture fit
    • Develop a meeting rhythm

    Today’s event went well and we’ll likely do it again. Know any entrepreneurs in the Southeast in the growth stage? Send them our way.

    What else? What are some more thoughts on scaling a startup?