Running a business will be stressful at the better of times. When difficult market conditions begin to get in the way, stress levels can skyrocket for each founders and their teams.
We launched Pipe right at the starting of the Covid-19 pandemic. While there have been obstacles and challenges along the way, 4 key principles have helped us grow, protect our mental health, and build a company our team loves working for.
(*4*)
Search less. Close more.
Increase your revenue with end-to-end exploration solutions powered by the leader in private enterprise data.
Here are priorities that may show you how to do the same:
Trust that your team will do their job well
Trusting your team will be difficult for startup founders, who often have to remind themselves that “their baby” is larger than them. But trusting others means you have to juggle less. It also improves morale and buy-in and opens the door to big pondering.
As a global company, Pipe offers equal compensation (not geographic compensation), which has helped us build a solid, collaborative team with diverse ideas and experiences. This is a major source of resilience because it helps us find recent solutions to problems as they arise.
With a great team in place, trusted and empowered to do their work, founders can focus on the impactful, strategic work crucial for their roles.
Keep staffing levels low relative to valuation
We worked hard to remain slim. This meant that our teams weren’t only efficient and collaborative performers, but also people with the right resources. When we reached a $2 billion valuation, our team was lower than 50 people; today there are only about 100 of us.
If recent changes in the economy have shown us anything, it is that nothing is certain. This week’s budget may not match next week’s budget. Instead of building large projects and having to make cuts, maintaining lower staffing levels may give team members room to contribute significantly while still maintaining margin in the staff budget in case of unexpected declines.
It could also be tempting to grow quickly, but staying (strategically) lean gives you an advantage like the tortoise and the hare.
Maintain a money cushion in case the market slows down
Running a business is a series of booms and troughs, bull and bear markets. The ups and downs can eat away at your peace of mind, especially if the downs bring you closer to the edge. Having a money cushion is crucial to build a strong and lasting company and lets you safely (more or less) proceed your small business as usual.
Whether you are trying to raise capital in the near future or not, keep your runway in mind. How long could you function without a money injection? What happens if your revenues drop by 10%? A money cushion extends your runway so you may weather change with less disruption.
Be flexible and open to changes
It could also be a cliché that the only constant is change, but it’s true. The entrepreneurial journey is about overcoming obstacles and finding inventive solutions. Unfortunately, it is simple to get stuck in one way of pondering – a habit that turns changing circumstances into stressful nightmares.
Companies that thrive in a demanding market are flexible and agile. While your goals may not change, be willing to alter the way you achieve them. As the market, competitive landscape and customer needs change, it is important to give you the chance to roll with the punches.
Application
Economic challenges can threaten the survival of your small business in addition to your mental health. No success is value sacrificing the well-being of you and your team. We have found these 4 principles to be very helpful in building our company, so I encourage you to seek out what works best for your team and build these pillars into your organization culture.