6 Ways to Weatherproof Your Business
I started a company with my best friend out of my 750 sq. ft. apartment several years ago and we bootstrapped it to what it is today: a rapidly growing 60+ person company, serving over 200 thousand customers in over 30 countries.
We have some amazing people that work at CanvasPop. From developers, to designers and marketers, we have all come together to create a company focused on design, remarkable customer service, innovation, as well as a positive and inspiring work culture.
Bootstrapping a fast-growth technology company can be quite a roller coaster. In the early years, the highs can be very high and the lows can be very low. However, if the right systems and people are in place, the highs and lows start evening out over time. What has always determined our success is how we handled those low moments. They challenge your team’s character, heart and commitment to your vision. How you handle the lows can also be a source of inspiration for your company if you deal with them effectively.
As a leader of any organization,one of the most important things you can do is weatherproof your business during the early stages. Every business is going to hit a few storms and if and how you get through them will depend on the foundation that was laid in the early years. There are several things you can do to ensure that your company is strong enough to weather any storm — big or small. Six key considerations include:
1.Nothing is more important than the product. Everything starts with that initial product. From traction, to customer loyalty, to revenue, to attracting top talent, to growth — it all stems from your product. In the least amount of time, with the least amount of money spent, nail the product. No matter how much volatility you hit or issues you encounter, if you have a great product that people truly love, you can get through anything.
2. Ensure your vision is bold and gets bigger over time. As a bootstrapped company with no outside investment, you may have to start with a small vision. However, as you gain traction and generate revenue,use that momentum as a base to move into bigger markets, solve bigger problems, and create a bigger vision. As a leader, it is your responsibility to clearly articulate that vision to your team and ensure that it is an inspiring one.
3. Hire people you can’t afford. Your brand is simply a result of the sum of all your employees’ decisions. If you want those decisions to be of the highest quality, you need to attract high quality employees. When you are a self-funded company pushing for growth, there is often a temptation to save and not shell out the money for top talent. This is a death sentence for any company. Your first 10 hires are going to attract your next 10 hires, and the 10 hires after that, etc., etc., so they must be of top quality. You need to figure out a way to get the right people in your organization. If your vision is too small, then think bigger. If your culture is non-inspiring, then turn it around. If you simply don’t have the money,then either make more or stop the bootstrap model and bring in investment. Whatever it is , get the right people in early and you’ll drastically increase your odds of getting through the tough times and achieving success.
4. Base your decisions on a set of core values. You are going to be tested as an entrepreneur at every stage of your company’s life cycle. At every turn, the decisions you make will be judged by both your employees and your customers. If you remain consistent in your decisions, both your employees and customers will develop loyalty and trust. The best way to ensure that all your decisions are consistent is measure them against a set of core company values. Clearly define these values, communicate them with your employees, and ensure that they are the cornerstone of every major company decision. This will provide a framework and some structure to the chaos that often ensues when you are growing a business.
5. Be in great physical shape. When you hit business challenges,you want to be in the best frame of mind possible, of which being physically fit is part and parcel. Being in your best physical shape can only increase your odds of thinking clearly and positively, and ultimately help you weather the storms. This may mean getting up earlier, curbing your diet, or cutting down on the beer — whatever it takes, do it...it will pay off.
6. Do not build a straw house. I have seen it time and time again: a founder starts a bootstrapped business; gets initial success; hits a few million in sales; and since there are no outside investors to answer to, starts to take too much cash out of the business and it becomes a straw house. When you hit initial success, keep feeding the machine: hire amazing people; invest into your company culture; re-invest in your products; broaden your business model; invest heavily in your technology; share the wealth with your employees who are helping you attain your vision; be patient; and stay focused. With this approach, you’ll build a solid foundation upon which a skyscraper can be built. I truly believe this is the big difference between bootstrapped entrepreneurs who can scale something big and those who can’t.
While there is no magic bullet that can determine a company’s success, the above points will certainly help put the odds in your favor. As a leader, it is your responsibility to understand and utilize these tools effectively. This way, when the storms hit, you’ll be ready.
