Creating your Guiding Principles

Sherrie Suski discusses guiding principlesJust like there are many different versions of a Purpose Statement, there are many different versions of Guiding Principles.  They can go by How’s, Core Principles, Core Values or Guiding Principles.  But, by any name, their main purpose is to start to establish what you stand for and what you believe in. They start to form the framework for how you will guide your company, how you will do business and how you will realize your Purpose Statement.

As with the purpose statement, it is always best to engage your workforce in the creation of your guiding principles.  Have a few brainstorming sessions, have an idea box or e-mail address that suggestions can be submitted to, have a contest, anything that will start people talking and then thinking, and it usually does happen in that order, about how they are going to actively contribute to the Company’s Purpose Statement.  Let people know up front that the management team appreciates all of their input, will take all of it into consideration, will summarize it and will come back to the group with 4-8 Guiding Principles.  There is some debate to be had over the ideal number of principles.  My preference is to have about six.  You need enough to cover everything you need to, but not so many that no one can remember them all.  Keep in mind that you will want them hanging or painted on a wall and you don’t want it to look like a long story that no one wants to take the time to read.

Some examples of Guiding Principles might be:

  1. Do what is right and not what is easy
  2. Be appreciative
  3. Have a positive impact with each encounter
  4. Be humble
  5. Focus on our customers

Once you have identified your core Guiding Principles, it’s time to announce them to the Company.  Make sure this is accomplished with some fanfare and that, preferably, it is participatory.  People remember how they feel and it is much easier to elicit a feeling if you are participating in something than it is if you are simply listening to something.  One idea might be to break your team up into groups and to have each group take one of the Guiding Principles.  Ask them to come up with a skit to depict the wrong way to portray and GP and then the right way.  Be sure to end with the right way as that’s what you want people remembering.  Teams can have a lot of fun with this exercise!  Imagine a skit showing how NOT to be humble where someone is walking around boasting how great they are and taking all the credit for a goal that has been achieved and then showcasing what the same scenario would look like when someone was being humble, giving credit to the team in its entirety.

Guiding Principles should concisely convey how a company defines itself from a variety of different perspectives.  Make sure that your Guiding Principles speak to your external customers, your internal employees (which can also be customers) and to what success means to you. Your Guiding principles should flesh out your purpose Statement, adding more specific information on how you plan to accomplish that on a daily basis. Ideally you become recognized by your Guiding Principles and stand out amidst your competition.

When Startup Culture Changes

startup-photos-largeIt is a very intense time when a startup first goes into business. Everyone is working full-tilt and you likely have a small, close-knit staff that appreciates a fun and free atmosphere. But there will always come a time when a startup is no longer a startup. Either it goes out of business or continues to mature into a regular company. This is a transition few, especially young people, tend to think about when they dream of beginning a new startup. But the fact remains that startup cultures, by definition, are ultimately unsustainable for a number of reasons, and it’s critically important to have a vision for your business beyond the early stages and a plan for when the inevitable transition occurs.

Fix The Typical Weaknesses Of Startups

For example, spending often gets out of hand at startups because you want to have a good time around the office, offer fun perks and haven’t gotten around to hiring an accountant yet. If you don’t have an accountant or finance person to manage, interpret and advise you on the numbers, it’s critical that you bring one on. Know also that many startups fall into the trap of making emotional rather than rational decisions. This is especially true when it comes to creative differences and underperforming employees. You may like them and want them to stay around. They may be old friends. But at some point you’re going to have to start making the tough business decisions, and that includes letting people go if necessary.

You’ll Need To Bring In New Employees

Of course it’s possible your new employees will hold the same passion for your company that you and your original team do. But it’s also likely that they’ll be a step down when it comes to engagement. It’s the responsibility of you, your employees and the established company culture you’ve built to get any new employees as impassioned about your work as you are. You will not only need to bring in these new employees, you will have to train them. Sometimes, that means abandoning your startup’s stereotypical laissez-faire attitude for some micromanaging. It’s very important to develop a good training program at your company as well – without one, you risk new employees getting confused or lost and ultimately dissatisfied.

Your Organization Will Start Getting More Complex

When an organization starts to get more complex, it will require more complex methods of managing it, many of which are typically adopted by more “normal” businesses. You will need to choose your leaders carefully at each level. You will need to be able to distribute workload more fairly, so typical long startup hours are not needed to be worked by large numbers of people. Long hours are usually a necessity at the beginning, but it’ll only be so long before disillusionment and burnout set in.

Keep Your Startup Culture Alive!

While by definition a “startup culture” never lasts forever because your company isn’t a startup forever, there are some things you can do to ensure that “new startup feel” continues. Perks are nice, but they aren’t going to keep employees invested in your business in the long term. Make sure to always listen to the suggestions of other employees while having a defined hierarchy. Hold onto your established values. Reflect upon them, and live them every day during your startup.This will help ensure continued growth and employee engagement.

Raising Funds For Your Startup – Without Investors

sherrie suski meeting

You’re an entrepreneurial spirit; you have an idea and you know it has potential, but you’re just not sure what to do next.

Well, one of the first things you’re going to have to do is get some money. That’s the hard and fast truth; it’s incredibly difficult to get a business off of the ground without at least a little bit of financial capital to work with. But for some, the idea of fundraising is appalling, and finding funds through an investor seems even more daunting.

The good news is that there are ways to build funds for your business in its first phase that don’t involve pitching to potential investors. So, if you’re an investor who wants to avoid the standard path to fundraising, explore some of these alternatives:

 

Back Yourself

This is probably the most difficult (and scary) option to wrap your head around, but honestly, if you really believe in your business, you should be ready and willing to invest yourself fully into your idea. Depending on how financially established you are, you may have a few options that you can tap into. Look at your savings, and determine how much you can reasonably put towards your business. If you have a mortgage you may be able to refinance / make use of your home equity.

Remember, no one is going to want to invest in a business if its founder isn’t willing to put a bit of their own money on the line.

 

Partner with the Correct People

This really comes down to networking and networking well. If you have people in your network that believe in both your business idea and you, you may very well have the co-founders or investors you’re looking for right there within arm’s reach.

As an entrepreneur, you should always be working your network, and your network’s network to build connections. You’ve probably already researched the various channels you’ll need to access when growing your business (distributions, supplies, clientele, etc.), and made connections with people in all of those realms. Don’t be afraid to look for investors within those channels.

One of the most important parts of your business will be the people that you build it with. If you can get an existing supplier to invest in your business, you’ll not only have an investor….you’ll have the supplies that you need.


There are a few other ways that you can get around the investor pitch. Check back soon for more ideas!