Entrepreneurs often celebrate the decision to go out on their own, happy to take on the risk. This is despite the statistics that 60 percent of businesses in Australia will fail within their first three years, with 20 percent failing in their first year alone.
Once the intense first year flies by – a blur of long hours and worry about joining that 20 percent – the next milestone is making it to the three-year mark. The question then becomes: What needs to change to survive the next two years? The clear answer is that your team must grow, and as a leader you need to gain their respect.
So as the leader, what’s the best way to do that?
Be real
It’s common for entrepreneurs to be detail-oriented, driven visionaries with all the details of the vision and operations in their heads. If that’s you, then celebrate it – you’re sharing your vision and providing an opportunity for others to join.
Recruiting a team to this environment, however, requires some leadership skills that aren’t always top of mind for a newly successful entrepreneur.
When recruiting, be open about your startup. Usually, it’s a business that can grow with a team who believes in your service or product as it develops. Hint: it’s not Nirvana.
It’s a startup in a growth stage. You’re recruiting a team because you need them, and they’re working with you because you’re the entrepreneur with a vision worth supporting.
Play to your strengths
Few people excel in every field of business and even fewer enjoy every facet. Play to your strengths and hire someone as soon as possible to cover the areas you don’t enjoy. Accounting, for example, is often one area entrepreneurs avoid. If that’s the case, bring in someone with those expertise.
Respect
The Cambridge Dictionary defines respect as “admiration felt or shown for someone or something that you believe has good ideas or qualities”. The rip, tear and bust of the early startup stage now needs to refine itself for managing people. And the first person to manage is yourself.
While being driven is essential, a slower, more considered approach to communication can reap rewards. Snapping out a command may be effective as long as everyone’s in a receptive mood, but addressing a team member by name shows consideration.
While being driven is essential, a slower, more considered approach to communication can reap rewards.
Dale Carnegie, in his book How to Win Friends and Influence People, famously said, “Remember that a person’s name is to that person the sweetest and most important sound in any language”. If your goal is to influence people, make them feel that you’re respectful and, therefore, worthy of their respect.
Brisk communication may be efficient, but it usually only gets one message across: what you want done now. After addressing someone by name, thank them for their idea – even if you’re not fully on board. Let them know you’re reviewing it and, in the meantime, suggest they move forward on the latest issue.
Caution in communication
Hedge your bets when it comes to communication. Everything you write could potentially be used against you. Regardless of where you live and how litigious your culture is, caution is key when addressing anyone in a professional environment.
Business is business
Your team members are not primarily friends. They’re professionals worthy of respect, and that includes the kind of respect you’d give a potential competitor.
A strong new idea that has survived the first stage of entrepreneurship – say, the first year – and is now expanding its team is likely to attract attention from competitors. Often, these competitors are already in the market. Confidentiality needs to become part of the culture. Keep discussions of your ‘next big idea’ under wraps.
If you’re honest with yourself in how you present your working style and the product you represent, you’re respecting yourself.
Phrases like “When we get the funding, we could improve the product…” can inspire competition, including from current team members. Many startups have faced internal competitors – a spin-off that emerges from a small company that ‘lost its way’. Avoid being that company by protecting your ideas.
If you’re honest with yourself in how you present your working style and the product you represent, you’re respecting yourself. Bringing that honesty to your team builds confidence and fairness.
With confidence, you can relax in a professional setting. Address everyone with courtesy, acknowledge their efforts and, sometimes, add a little flair. That’s what respectful leaders do, and it’s likely to gain you respect in return. Finally, remember: you’re in business for business.
