Feedback Loops
A topic that encompasses a lot of the startup process, and really life, is setting up feedback loops to not live inside one’s head. While my background and some of the verbiage below suggests a focus on tech startups, these are general ideas. Most startup talk can refer to any company getting going. I’ll relate the different types of feedback loops to different phases of the earliest stages of building.
There are a few core phases to starting a company (not limited to tech):
- Testing the idea
- Building and delivering an MVP to find product/market fit
- Creating a repeatable process to bring in users and/or customers
It takes successfully completing these three oversimplified steps to have a sense of whether the “thing” being created can be a company. There’s a large gap to jump between thing → company. The founders who do this consistently are those that set up feedback loops from trusted advisors, mentors, and professional contacts throughout the journey.
The best way to set up the dominant feedback loop is to have a cofounder/partner. Batman was arguably his strongest with Robin, and The Powerpuff Girls needed each other to handle any number of problems and villains. They also needed the camaraderie to keep focus and direction, and, above all else, companionship and moral support.
Most accelerators and many investors struggle to back a single founder and this is one of the reasons. A solo founder should take even more care in setting up immediate and consistent feedback loops to avoid running at a problem alone for too long. After all, the startup process, for any business, is about discovery and constant adjustments to address a pain point in a repeatable way, aka sales.
The next step is finding trusted mentors that have direct experience in whatever areas/problems you’re going after. Mentors are different than advisors because they typically aren’t asking for or expecting equity compensation. These individuals are wanting to see you thrive and get to the next level. Do this correctly and the business can thrive to the point where it’s time to either bring them on as an advisor (while maintaining the mentor relationship), or evolving into needs for new outside advisors to help with very specific, tactical areas.
The advisor relationship is one that can be compensated with equity in the company. They should be on a vesting schedule just like everyone else, but a shorter one. The key to the shorter contract length is a hint at the type of commitment and relationship being formed. A company will continue to evolve quickly over the first several years of the business. With that comes constantly needing new expertise and troubleshooting to keep up with growth.
Find 2–3 advisors, when it makes sense, that can work with the founders and even key employees in the advisor’s respective expertise. Keep them in the flow of discovery and change while showing their feedback and suggestions are being implemented where it makes sense.
Finally, too many opinions from different sides will give you mentor whiplash. Read what great investors had to say on this topic here and here. Setting up feedback loops takes a lot of strategy and positioning to be done correctly and without causing noise. The whiplash part is solely on the founders. Take in every bit of feedback and advice, but filter that intelligently to align with personal goals for the company. Be open, accepting, and methodical when hearing out those loops.
Join the Meetup group for Texas State Entrepreneurs! Founder or not, enjoy time with a high quality group of Bobcats and others.
