16 New Rules of Business

Entrepreneurs are nothing if not a trailblazing bunch, and they know firsthand that many rules were made to be broken. From hiring to time management, email etiquette to funding, today's business owners are tossing the guidebooks. More and more businesses these days are even breaking the (former) cardinal rule of business — don't start a venture with friends — and seeing success.

We spoke with a handful of entrepreneurs about their approach to business — and the rules they broke along the way.

1. Hire outside the box

"I have learned over the past eight years that it is better not to hire someone with 'industry experience,' particularly when your product and business model is a disruptor. People with industry experience have been trained to approach growing a brand, going to market, and selling in the same way that all big incumbents have. When you are a disruptor, you purposefully need to think and act differently — to see the opportunity where others haven't looked. It is true in how you talk with your consumer, how you make your product and how you go to market. I have found that people from the industry have a very difficult time thinking another way." — Kara Goldin, founder and CEO, Hint

2. Timeshift your team

"Of a Kind HQ doesn't officially open for business until 10:30 a.m., and we made the decision to have a late start-time in order to protect our mornings. We realized quickly when launching the company that our nights were almost always packed with commitments (drinks meetings! events! dinners!), and that if we didn't do things like exercise and drop-off dry-cleaning in the morning, we would never have that personal time. This way you can come into the office feeling like you've got your sh*t together, which sets the tone for the day ahead." — Erica Cerulo, cofounder, Of a Kind

3. Do a little bit of everything — even the dirty jobs

"In the very early days we did everything ourselves to save cash (cleaning toilets is not below us!). But this was really instrumental in helping us understand how to operate the most efficiently, and it has generated enormous respect from our employees. When they see us doing everything and working our butts off, it helps motivate them to do the same." — Chelsea Kocis, cofounder and COO, Swerve Fitness

4. Tune out

"Disconnect and take time away from your 'baby.' When first starting a business, you most likely play the role of the CEO, COO, CFO, CMO and Director of HR. This leads to long hours and very little separation between work and home. Set aside time to shut off your phone and take time to disconnect. You will be a better entrepreneur and a better human being by doing so." — Tracey Noonan, owner, Wicked Good Cupcakes

5. Be transparent — even in HR

"Every new employee joins us on a 45-day trial. At the end of that trial, the entire company gets to have input on whether that person should join the team — kind of like Survivor, where the person can be voted off if there isn't a fit. Cultural fit is so key to an early-stage company that spending this extra time in hiring is key — about 60% of candidates successfully make it through the trial. We also don't have many of the traditional recruiting levers at our disposal. With all salaries banded and transparent to the rest of the organization, it isn't possible just to get a potential employee to sign up by slipping a few extra thousand dollars. Negotiation really doesn't exist in the salary component, which changes a lot from the normal process.” — Dane Atkinson, CEO, SumAll

6. Enforce a hard stop

"My company is distributed, with most of us working from home most of the time in different time zones. Our rule: No email on weekends or after 7 p.m. in whatever time zone you're in. You can work any hours you want, but you have to use Boomerang for overnight email. (We make exemptions for urgent business and in the time before a big event.) It helps everyone stay conscious about working too long and ensures that we have meaningful breaks from each other. Plus general sanity." — Sarah Milstein, CEO and cofounder, Lean Startup Productions

7. Don't think in annual terms

"It took the experience of running five companies before I was able to slap some sense into myself and convince myself I could bootstrap it out of cash flow and sales. Many times it's not until you begin to lose money in business that you cut back on marketing and customer service, which is a vicious cycle. It's foolish to cut costs in the business to the detriment of the delivery of your product or service. Simply getting rid of staff or resources that adversely affect great customer service or quality of your product will only serve to end up costing you more in the long run. [In the beginning, you should] seek better supply chain deals to reduce cost of goods and bonus staff on performance so your salary and wage costs reflect a sales result or improvement of revenue in the business. [Also], monitor your P&L monthly, not annually — a business is typically going broke 12 months before it does, so an annual review is too little too late. Spend time managing the money you've made, not just on making more money. — Troy Hazard, former global president of the Entrepreneurs' Organization, founder and owner of 11 businesses and author of Future-Proofing Your Business

8. Splurge on things that are often overlooked

Image: Stitch Fix

"Many ecommerce companies make the mistake of only thinking about the customer experience in relation to the website experience. There are a series of touchpoints that customers will have with your brand, and

the shipping experience is a huge opportunity to improve your customer’s overall brand experience

the shipping experience is a huge opportunity to improve your customer’s overall brand experience. Many companies only think about how to make shipping as cheap as possible, and as a result, the items you spent your hard-earned money on arrive in plain, dirty packaging. We made a point not to skimp on shipping, instead investing in beautiful branded boxes, tape and tissue paper. Our warehouse team puts an incredible amount of care into packaging each Fix so when it arrives, it's an exciting and engaging experience for our clients, like opening a gift. As a result it's one of the most inherently sharable parts of our service, and beautiful packaging has become synonymous with the Stitch Fix experience." — Katrina Lake, founder and CEO, Stitch Fix

9. Toss out the projections — your business is you

"The new rules of business say that a voluminous business plan is no longer necessary to get in the game. Friends and family, angel investors and VCs care deeply about who you are as a business owner, what you bring to the table, your experience, your likability, your drive, your horse sense. Everyone knows your financial projections for a startup are best used to wrap fish. There’s no formula based on silly projections — you have to show you know your offering and your market in a way you never did before. While you don't need a big fancy business plan anymore, you need even more clarity and direction than you'd find in that plan. Under the new rules of business, no longer is your business something you do, it’s something you are." — Emily Chase Smith, Esq., attorney and author of the new book, The Financially Savvy Entrepreneur: Navigate the Money Maze of Running a Business

10. Embrace a hybrid model

"We started our menswear brand on Kickstarter last year to test our market affordably, and since launching we've adopted a hybrid model. Half of our line is direct to consumer and exclusive to our online store. The other half, we do the traditional wholesale/retail way. We also make a point of keeping our prices affordable and our items eco-friendly while still manufacturing small-batch goods in the U.S.A. Our hybrid business model straddles the traditional and direct to consumer pricing strategies. By offering online exclusives, we're able to sell some items at a lower (D2C) price point while still expanding the brand's reach through retail accounts. It doesn't pigeonhole us into only using one method. It allows us to test things out and we can pivot at any time." — Josey Orr, cofounder, Dyer and Jenkins

11. Ditch the HQ, go BYOD

"Formerly a part of a large agency, we're working to provide the same quality of service with much lower overhead expenses. We have reduced real estate overhead through telecommuting, allowing our employees to work wherever they are most effective, while bringing each other together for necessary meetings. Along with this, we have implemented a BYOD (bring your own device) to work policy, again cutting down on infrastructure costs. We use cloud-based networking and CRM and CMS tools in cost-saving ways. Additionally, there are many free and freemium tools that we use to further cut down on overhead." — Katie Mayberry, principal, Spyglass Digital

12. Nix ineffective meetings

"We don't like meetings. We have weekly staff meetings that last 30 minutes or less, but otherwise we do not schedule and plan lengthy or otherwise repetitive meeting dates. Meetings don't accomplish what we want and often waste the time of the parties involved. [Similarly,] we don't feel the need to involve every single person in all our tasks; we prefer getting things done versus just talking about getting things done." — Luke Knowles, CEO, Kinoli Inc.

13. Use CC to replace your old "status update" meeting

"Claire and I are CC superfans. We CC each other on most everything — we ask our employees to do the same — and it gives us peace of mind. Yes, it means you have a ton of emails in your inbox, but you don't have to actually read them all: They're there for reference when you wake up in the middle of the night and think, "Dear god, did so-and-so ever do that thing?" And, because Claire and I have a general sense of what the other's working on, we can spend our meetings together thinking about bigger-picture projects and can be better brainstorm partners — it eliminates the need for the endless stream of status meetings." — Erica Cerulo, cofounder, Of a Kind

14. Go on and ask for things

"Don't be shy to ask for favors. When you're building something valuable, you'll be amazed by how many people are genuinely excited to pitch in and help." — Trina Chiasson, CEO and cofounder, Infoactive

15. Don't charge for status — price your goods fairly

"We evaluated the retail landscape and saw the majority of brands abiding by antiquated norms. Businesses that incur massive distribution costs and rely on high-priced marketing campaigns have less to invest in their product. At American Giant, we decided to forego those norms in order to build a business we believe resonates with consumers. By selling direct-to-consumer, online only, we avoid the costly practice of opening, maintaining and marketing brick-and-mortar retail stores. Represent something your customers care about by focusing on building quality product and selling it at a fair price. We believe this is what resonates with consumers and what ultimately drives word-of-mouth marketing and brand awareness, as opposed to spending on expensive traditional marketing campaigns and materials." — Bayard Winthrop, founder and CEO, American Giant

16. Be the human face of your company

"You are your brand and your company. Social media has changed everything! People expect transparency and — to a certain extent — an element of publicity. Be aware that everything you do and say on the Internet can and will be connected to your company. Use this to your advantage! Share your personal story. When people feel attached to you, they feel attached to your company. Tweet about your company from your personal social media accounts. Include pictures of you and your team in your company blog posts. You and your brand and your company are one." — Jody Porowski, CEO and founder, Avelist

By Lauren Drell

All the Marketing in the World Won’t Make a Bad Product Good

Here’s the scenario. You’re heads down. Trying to build a business from scratch. Is marketing your first priority? Let me tell you why it shouldn’t be.

It seems counterintuitive. And believe me, there’s no shortage of advice out there on the best ways to market your product or business. I mean, just Google it. But don’t be tempted to take a one-size-fits-all approach. Instead, take a step back and size up your product. Is it innovative, game changing? Is it something that people will tell their friends about?

Prioritize nailing the product before you put too much focus on marketing. This is an alternative approach to what we currently see from many startups.

Silver Bullets Are Rare: Don’t get me wrong your startup needs a strategic marketing plan. Even with the best product or service, if customers don’t know you exist or understand the value proposition, then you can’t build much of a business.  But everyone thinks there’s a silver bullet. Believe me, silver bullets are rare. When it comes to marketing, the expectations around what it can deliver are often way out of line. Marketing is a long-term play and very much a “what have you done for me lately game”. Very rarely do you hit a home run. It’s much more about hitting lots of solid base hits.

Follow good advice.

Product first: Let your product speak loudest. Whether you’re building a product or a service it must be innovative, disruptive and indispensible. Qualtrics didn’t have a dedicated marketing team for the first 10 years. Instead, we focused on product development. We tore down our systems time and time again until we knew that it was the best it could be. You have to nail it before you scale it. How did we know it was good? Because our customers would share it with their friends, and a strong recommendation from one customer to another is the best marketing. Period.

 Market Focus Matters: Be laser focused on one specific industry. The shotgun approach does not work. You can’t spray and pray. Goal setting is super important to making this strategy work. So set goals and be relentless in achieving them. For Qualtrics it was all about academia. The target: Secure 200 leading universities as Qualtrics customers. Nothing else mattered. Professors were the early adopters, essentially crowdsourcing our product and providing great insight into feature development.

Never Underestimate Word-of-Mouth: Single market focus taught us a great lesson: Word-of-mouth is the most powerful form of marketing. Whether you’re a startup or an established brand, harness the power of WOM, but use it wisely. With a solid product and concentration on a slice of the market, your startup can more readily build customer advocacy.

Be Bold: Now, when it comes time to scale your business and really amp up the marketing machine, don’t be afraid to do it your way. Be unconventional, wild or just different. Or as we say in Utah, “Don’t be afraid to lean out over your skis a little”. There’s no standard playbook.

Qualtrics has grown up a lot since our young startup days, while we currently have a full marketing team, our biggest goal is to stay lean and scrappy no matter how big we get.  And, we haven’t forgotten the core values that ultimately took our company from a crowded basement to almost 500 employees.

This lesson is one that we won’t soon forget: Stellar products that deliver ultimate value are the foundation from which all marketing efforts will either succeed or fail. Let’s face it; you can put lipstick on a pig, but all the marketing in the world won’t make a bad product good.

Mr. Smith is CEO and co-founder at Qualtrics, a private research software company.

6 Ways to Make Your Content More Likely to Succeed

It’s no secret that viral content is a hot topic — and ongoing debate — in the marketing world. What content catches on and what doesn’t? Can a campaign go viral without major ad dollars supporting it? Is there a “formula” to increase reach?

While there’s no five-step process for creating a marketing campaign that catches like wildfire, there are a few things that brands of any size can do to increase the chances of their campaign achieving massive success:

Leverage “trend jacking”
Want people to talk about your campaign? Tie it back to something they’re already talking about. For example, the word “selfie” was mentioned 28.8 million times on Twitter last year, and it’s no surprise why. Give someone a camera, a mirror and near frictionless sharing with friends, and voila: You have a compelling experience that millions of people repeat every day. You also have the foundation for a successful user-generated photo campaign. When we wanted to expose SXSW attendees to our platform earlier this year, selfies were the answer. We created a campaign where participants simply had to upload their best “SxSelfies” to a website, then people voted for their favorites. By turning selfies into a social game, our hashtag reached 833,000 people and generated 1 million impressions – far exceeding our participation goal.

Think “and” not “or”
Once we wrapped SxSelfie, we used Google Analytics to see which devices people used to access the campaign. As we suspected, more than half of the people who visited the website did so through their phones. What surprised us, however, was that one-third of visitors used their desktop to access the site instead. Lesson learned: Had our campaign been mobile- or Web-only, we would have lost a good chunk of participants.

Eliminate participation barriers
This one may seem like a no-brainer, but the easier it is for someone to participate in a campaign, the more likely they will. If you want your campaign to go viral, tell people exactly what they need to do to join. Even better, give them the tools they need to do it. The Kind Campaign leveraged the 10th anniversary of “Mean Girls” earlier this year to launch an effort to end girl-against-girl bullying. To participate, people simply had to share a pre-created image with the campaign hashtag – both of which Kind Campaign provided. In one week, the hashtag was mentioned 10,000+ times on Instagram alone.

Fire up your fans’ passions
If you know people love their cats and dogs, why not create a campaign around them? That’s what we did with Calendars.com – and it worked. We asked participants to upload photos of their dogs and cats to a campaign website, and then asked community members to vote for their favorites. The top 13 photos in each category were then used in 2014 calendars. In six weeks, Calendars.com collected 1,400+ photos – 11 times the total amount they had captured in the past six years.

Make it count
Social media has changed the way brands manage social good campaigns. Suddenly, anyone can support a cause simply by tweeting, tagging or sharing a photo. So, adding an “online giving” aspect to social campaigns can help increase both participation and social reach. Earlier this year, we partnered with Boston’s Frost Ice Bar to raise money for the victims of the Boston Marathon bombing. The Frost Ice Bar hosted the “Froston Marathon” pub crawl, encouraging participants to take photos along the way to show their Boston spirit in support of the marathon. The contest simultaneously drove brand awareness for the Frost Ice Bar while raising funds for a fantastic cause. Sounds like a win-win, right?

Build in social sharing
Each of the campaigns we’ve mentioned so far has one more thing in common: They were also easily shareable. With Calendars.com, each photo was shared three times on average. As a result, 45 people viewed or voted on a photo for each one submitted and 360,000+ votes were ultimately cast, helping Calendars.com drive brand awareness. The same could be said for Froston Marathon: With each photo shared four times on average, social sharing drove more than half of participants to the campaign website and helped Frost Ice Bar add more emails to its database.
How have you increased virality of your social contests and campaigns? Let’s discuss in the comments.

Mike Svatek is the cofounder and CEO of Together – a mobile-first marketing campaigns platform.