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, Hint2. 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 Kind3. 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 Fitness4. 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 Cupcakes5. 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, SumAll6. 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 Productions7. 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 Business8. Splurge on things that are often overlooked
Image: Stitch Fix
the shipping experience is a huge opportunity to improve your customer’s overall brand experiencethe 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 Business10. 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 Jenkins11. 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 Digital12. 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 Kind14. 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, Infoactive15. 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 Giant16. 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
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