Startup Principles

Recently, I was asked for my advice on setting up a startup. In a previous life, I was one of the founders of a startup that ran for almost 10 years. Later, I worked for AWS, running training for small businesses, green field and start-ups.

If you’ve ever interacted with an Amazonian, you have most likely heard of the Leadership Principles. There are now 16 of them, and each one defines a way to think about decisions. For a company the size of Amazon, sixteen principles aren’t too many, so long as they are well thought out, but for a start-up, it’s just too many.

Start-ups need to be able to move quickly and react to market feedback. If they don’t, they will fail, or at least not reach their potential. So when I was asked for my advice, I tried to think of what principles make sense for a start-up, focusing on only a few. As the business grows, and matures, they can take the time to work out what principles work for them.

So, what are my principles for a new startup? Nothing here is new, or a great idea I’ve uniquely had; it’s just my thoughts on a good set of principles.

Do one thing and do it really well

We’ve all seen the latest offering on Kickstarter: a camping light, battery pack, torch, emergency beacon, mosquito repeller and hand-warmer. There is always one decent idea, but with extra fluff added to try and make it a unique product. But it just ends up making the product a hodgepodge of mismatched parts.

When it comes to building a solution, extra fluff has two knock-on effects:

First, it’s a distraction for your teams, and
Second, it complicates your solution for your customers.

Put very simply, don’t try to be a master of all trades. The reality is that you are fighting in a market where you are rarely alone, and there are a great many companies with more money and time than you have. So keep the focus on what makes your solution unique and valuable.

Scratch your own itch

I cannot count the number of start-ups I have worked with, that have ended up failing due to distraction burnout. The reality is that the process of getting a start-up going and out of the start-up phase will be hard. There will be a lot of hours, days and weeks that you will need to pour into it, with no guarantee of any return. To that end, you will need focus and commitment. I say “scratch your own itch” because if you are trying to solve a problem that frustrates you, it is easy to keep that focus. You are your own first customer.

But if something bugs you enough to come up with a solution, it probably bugs others. This is your initial customer base. There will also be a bigger base of customers that may not have thought of a better solution. This is where marketing kicks in.

Embrace the Minimal

Embrace the Minimal doesn’t mean do a minimal job, it means do the minimal to achieve your goals. Most people have heard of the concept of a “Minimum Viable Product” as a way to ensure you are building lean and embracing learning from customers with an active feedback loop. So, of course, use this to drive your product direction. But I encourage you to take this further.

Take the concept of minimal into your technology decisions. A “Minimum Viable Architecture” is the idea that when you are designing the architecture for your product, both the infrastructure and software, focus on just what is needed to support the solution. Don’t spend your time over-engineering or learning the new and shiny tools. Not every decision will be the correct one for a company supporting millions of customers, but as a start-up, you’re not supporting a million customers. When you get there, you can change your decisions.

It’s worth a quick side note here. I’m not advocating that you shouldn’t think about and plan for a future state and ignore best practices. Rather design for tomorrow, build for today.

Finally, is the concept of minimal data. It can be very tempting to capture every little bit of information about your customers, in case there is a use case in the future. This adds additional on-boarding friction for your users, but also, you cannot loose, or breach, data you don’t have. My approach is the opposite, capture only what you actually need to complete your business functions, and store it for only as long as you need it.

Every decision should create an opportunity or remove a roadblock

I heard this from Alex Lindsay on Windows Weekly and loved it. It’s such a simple way to justify or challenge day-to-day decisions that businesses need to make. This is doubly true for start-ups. A start-up, generally, doesn’t have the time or money to wander down side tracks just for interest. Do you want to learn and use a new technology? Great, but how does that decision help the business. It’s so simple to ask “does this new tech resolve a problem we are currently facing, or does it open up a new opportunity we can embrace.”

If the answer is yes, then charge on. But if the answer is no, this is a good indication that now is not the right time. Maybe later, the answer may be yes. If you are successful, there will be more money or time.

What Else?

As with any list like this, there are others that could be on your list:

Don’t reinvent the wheel - Focus on building upon existing foundations and innovating in areas where you can add unique value. If all you are doing is another wheel, your unlikely to take over the world.
Ask for help - Don’t be afraid to ask for help when needed. Recognise that you don’t have all the answers and be open to a bit of help.
Be willing to pivot or adapt - Did you get it right the first time? Maybe, but maybe not. Be willing to pivot or adjust the business strategy in response to changing market conditions, customer feedback, or unexpected challenges.
Measure and Evaluate - It’s easy to get wrapped up in your own sales pitch. Make sure you have a way of measuring the success of decisions, and take the time to do the evaluation.

In Conclusion

Setting up a successful startup requires focus, commitment, and a clear set of guiding principles. By embracing a minimalist approach, scratching your own itch, and doing one thing really well, you can create a solid foundation for your business. Additionally, ensuring that every decision creates an opportunity or removes a roadblock will help you stay on track and make the most of your resources. Remember to stay flexible, ask for help when needed, and continually measure and evaluate your progress. By following these principles, you’ll be well on your way to building a successful and sustainable startup.