Founder’s real ability is embodied in “will save money,” is not “can let money”

(compile: cloud)

cloud network hunting note: abandoned the traditional concept of the faster into the development of the business, the Location, founder of Labs, tassos roumet lai Otis, the other of vision, think startup to thrift, don’t be too, just staring at the, the key still burn rate. Course, of course, people with popular products are two essential factors of entrepreneurial success.

when in 2001, tassos roumet lai Otis, establish the Location Labs, puncture of the dotcom bubble, venture capitalists followed by paranoia. The founder (its mobile security application project in September last year to $220 million valuation being AVG) memories of the region’s tragedy. In fact, his first experience of financing is so difficult that hair under oath, namely, unless as a last resort, otherwise oneself not to financing, and this means that the burn rate drops greatly.

he said frankly: “that experience is really a nightmare, we spent a long time to prepare, to overcome the obstacles, the result is not ideal) I don’t want to go to financing. We think that every dollar is precious and say that it is our attitude held from the beginning.”

in the early days of the great trust the team, with the help of roumet took the conservative cost-conscious Otis concept deeply into the Location of the Labs culture. For contemporary many attempts to the same rushes out one day means of entrepreneurial companies, he provides a low cost strategy to use the template not only get high returns, also make the company grow continuously in the process.

focus on core issues, on the other said “bye”

even before roumet lai Otis set foot on the financing way, he has realized his work serious environment: thrift is revered than ever before. The Location Labs is the mood, the first set up a website for $1500, and is often in the second-hand market for furniture. More rumors that, when they won a $9.8 million in the first round of financing success (given the final $25.8 million), few investors have said is because there are related to the existence of the promise of low cost, the deal was finalised quickly.

as a result, once confirmed that money into funding bank account, they don’t profligacy. As roumet lai Otis said, “I have no plans to fully formed or other, but I would say, ‘look, we don’t need to recruit, because the squad is enough,’ this is the case, in the two years after I refused to increase the new position, and also, for example, founder and chief executive, product manager, interface designers, a small groups of managers, architects and solely responsible for from payroll to human resources and administrative management of all logistics affairs. That’s all.”

in order to keep the total number of employees in a lower level, roumet lai Otis is by looking at the company’s main goal, the whole to find out the needs of all possible. At that time, the Location of the Labs focus on consumers and mobile operators will want to buy their software. This is the core problem, other conditions can be calculated. Then rapid prototyping has become the most important part of, other irrelevant.

he said, “until we win first business and financial resources, when he first rolled into their headcount is really low, but the work efficiency, no doubt. And when it comes to hire more engineers or a vice President to deal with this or that kind of emergency, I told myself, ‘before we have yet to find the key issue, don’t move these crooked brains’ “.

“you spend together every day. No management personnel. No corresponding daily expenses.”

the Location of the Labs team is strict in the recruitment process (or even can be said to be the critical), they will not hesitate to put the work experience of supervising ChuiLei himself had hired into blacklist. Roumet lai the Otis explains, “we knew at the time management will only dragging, and the others people management in the past and want to hit a peak in the field (so a contradiction between the start). What we need is that at 2 o ‘clock in the morning and we fought to submit code, so the next day we can in AT& T before ahead. In those early days, everyone wants to be a market test, to shoulder the burden of development, debugging, or sales.”

in order to better and faster expansion of scale, roumet lai Otis depend on the so-called “Scream” Model (Scream mode).

, he said, “we don’t hire others, unless you really trust guy (employee or manager of a cost conscious) rush to kill into the office, and the theory of chief technology officer with me, ‘I need more people to brainstorm! Don’t fucking bullshit! ‘we’ll consider it. Of course this is only when they really need.”

as roumet lai Otis can see, your people always want more people to work. After all, is human nature to form a team (like the earliest matriarchal and patriarchal clan), it brings a sense of security and belonging, let a person feel the unity is strength. However, reflect on, dig to the company really necessary? Pay the huge price worth it? Don’t hire him that we will fail?

especially in the early days, the recruitment will only induced by two things, he points out: either without their presence, product research and development will be gummed up (and this business will be ruined), or they will bring to the company substantial huge change.

“as the saying goes: there is no rules, no fangyuan. Decisions more crisp, course, people, product market adaptability to the next level, why should I worry about company future.”

wisely, make good team

startup Location Labs thrift as derived a lot of enviable “by-products”, the best is its core team. Without exception, player-wise still shed their blood for the company’s future. The once dedicated team on Sunday afternoon training out of the company’s chief scientist, mobile technical director and chief technology officer.

roumet lai Otis once said, “compared with than ordinary engineers, 10 times good engineers had a better work efficiency. If you want to keep the real elite talent, you have to early to plan, high salary, but also have other subsidies, so they wouldn’t move. To get them to face the huge challenge, of course, in one difficulty in the process of growing, in the long term it can be done with less manpower to complete more tasks. And this is our company’s consistent style and principles.”

actually, can let a high-level prioritize focus on burn rate, put the money to use on the blade, hire people who can in this kind of enterprise culture in the future. Facts have proven that morale is a good indicator of the character of many other high quality, the most important is the sense of responsibility and courage.

he also acknowledged that “we hired some people may not have imagined so on, and we usually within 2 weeks to find they failed to follow others steps clues well”.

“when you are working in a big room, looked up and looked down to see. Of course, “dark horse” is obvious.”

general, doyen are with the company through years of ups and downs, witnessed the flourishing and bleak. Today, the Location of Labs every vice President and manager are internal promotion.

a typical example, chief operating officer Joe grossman at first is to start from the business school’s summer interns, at that time he aspires to learn more. When he graduated, he became the first products to company vice President, head of operation up to now.

roumet lai Otis has been stressed that “when you have all grown up with the company’s leadership, they will be more loyalty, and also among the highest in the list of company’s sense of belonging. They usually they will like you care about the company, pay attention to small (details), will also motivate yourself, make yourself better.”

abide by this principle will not only help low capital consumption roumet lai Otis has built a team of master gathered close, it also as a kind of idea, pay attention to the elastic assignments and team cooperation, advocating the interests of the specific purpose is to extract the most from limited resources. Relevant examples abound.

he said: “when we are on the trip (tickets on Priceline) meeting with the customer, I will choose the middle seat, and hype on such ideas, because I want to convey their very bullish on the meaning of this way.”

at the same time, the whole team can be in the absence of new tools or cool automatic test system and customer relationship management (CRM) software under the condition of normal operation, and achievement. In other words, “we can only use of open source, this will lead us to find the low cost of innovative ways to solve problems.”

throw away your budget sheet

this may sound perverse, whereas roumet lai Otis admits he’s chief operating officer, still give him trouble in this aspect, because the former resolutely resist the budget.

“unreasonable budget is like this, whether reasonable, always planning.”

he said, “if you can tell them with x amount of money, they will try to spend. So today, I resolutely resist the company all aspects of the budget. If you don’t have the budget, people will be more cautious. It’s like unlimited paid vacation policy, the people taken less.”

this principle also applies to the business expansion phase. If you configure a certain number or limit growth lines, everyone will try our best to achieve these goals, even if they don’t need to completely or make no sense to do so. “Whether your company is in the expansion now or in decline, this mindset really bad.” He suggested that entrepreneurs don’t walk into the erroneous zone.

roumet lai Otis said, “I told the team without expanding too rapidly, as long as the appropriate expansion. If you just want to rapid expansion is to show its expanding quickly, that is stupid. Sometimes, even a lot of time, you need to stop and reflect. If employed a lot of people, you will need to stop working, consider carefully, and help them as soon as possible into the collective. Sometimes it will bring the hiring freeze, however, if you don’t slow down the pace, make sure everyone has just hired a workout, the in the mind will not steadfast.”

it is not easy to keep this attitude, especially when it is with the company’s investors’ attitudes. “, he thought, the VCS always love, they have been suggested, ‘hey, many companies have operations director, marketing director and sales director. You also need to it! “My righteousness is words to refuse. Reality is one from beginning to end I played by many angles, and when we find the product market resilience that model performed well.”

Primary focus on burn rate

compared to do budget to focus on money, roumet lai Otis recommends entrepreneurs more real-time monitor their funding rate. He said, “it was incredible! So many startups ceos only does it look when they held the board of directors. I see a similar situation for many times, when someone finally examine their funds usage can not help but sigh, ‘oh, my god, we really do too much. ‘”

in the analysis of the burn rate more and more common careful, this kind of situation how? How can a chief executive for capital inflows/outflows of cowboys?

, he said, “the next thing to consider is more common. Worked as a founder of some hard work, it was down a kind of rhetoric. You have to manage a team, but also strengthen and deal with change the competitive position. You may end up paying more than original amount 20% – 25% of money to ten different people. The company’s high burn rate. Of course, you will also focus on the product itself and do what you should do. Cold in the past 6 months, then found that ‘I go, only have six months of cash left! ‘if you only focus on two things, don’t hesitate, just staring at the burn rate and customer base.”

“you as the founder of the job is to determine if they need the money.”

in roumet lai Otis’s view, the founders should always focus on their funding rate. He said, “I’ll look at the burn rate every day, because when I think about some questions it can provide effective tips, such as’ we need a person to help make a product? ‘it usually is’ no, we don’t have signal.”

when the company ran out of money, it is almost always because of artificial cost and process cost out of control and no one noticed this kind of situation. “If you don’t look at the balance of bank account number and the media to spend money, basically hired a lot of people will eventually be fired. And when you implement this behavior is cut, the market will receive an error message that your company is desperate, divided the whole company. And then cause a vicious circle.”

because of the Location Labs need frequent stubbornly believe that invite applications for a job, to be pickier, so it never happened layoffs. This, in turn, has created a transparent safety and health environment, increase the staff and the manager’s sense of belonging.

change state of mind, “borrow” to “have”

roumet lai Otis also thought, “if you admit to melt into each dollar as their own, the mood will be very different. This is correct. However, the reality is that you borrow money from others.”

“imagine your parents need to sell a house to help you return your investors. In an instant, that money is real.”

he said: “when to seed round, you’re likely to get some help from family and friends and family. So, when I began to seek help from the VCS, they try to convert this mentality.”

as conservative use of funds, it is very effective, but it also has other benefits. nullnullnullnullnullnullnullnullnullnullnullnullnullnullnullnullnullnull