Startup companies need a specific type of management, which is different from managing business through the traditional ways.
Startup Management is different. When an entrepreneur has in his company; department managers, employees and each one knows his job, and does it. The same is very traditional. For example, the departments in a typical telecom company in Japan are similar to the same in another telecom company in India. They almost have the same goals. The same is very true when both companies are in business for over a decade. When the Indian or the Japanese HR manager hires a marketing manager, the latter expects the details of his job description. The experienced candidate has full confidence that he is fully qualified. He is a manager, he should be willing to train the inexperienced employees who are new in the career of marketing.
Getting a high salary and doesn’t expect to do minor tasks. Also expects to spend the regular working hours at the office. When it is time to leave, he leaves the office. While there is no overtime policy, the staff member who doesn’t finish his daily tasks, does not leave. He must finish his work first. Very traditional, is not it? The employer shares with the manager the same expectations. Therefore, the manager is happy and his employer is happy as well. The company in this example is not a startup company. Because it is in business for more than five years.
When a startup company hires the same manager, he has the same expectations hasn’t he? However, the experienced entrepreneur who runs the startup company doesn’t share the manager the same expectations. If he does, he doesn’t know what he is doing. There is stability in the first company. Things are managed in an atmosphere of high certainty, which is not the case with the startup company. Consequently, things can’t run traditionally.
When the traditional manager works for the nontraditional employer, both don’t like each other. There are two things that are expected to happen. Either the manager submits his resignation, or the employer dismisses the manager.
Here is why
- The employer asks the manager to do minor tasks.
- The entrepreneur expects the manager to agree on the same.
- While the working day ends at 5:00 pm, the manager never leave the office before 8:00 pm. Sometimes he reaches home at 10:00 pm.
- The owner asks the manager to do a lot of tasks that are not part of his job description.
- While the employer expects him to accept, the manager is furiously upset.
- The employer tells the manager that there are a lot of things that he should learn. Additionally, the entrepreneur evaluates the manager based on his learning curve.
- The manager says that the company owner is a supper idiot who knows nothing about managing a business. Because he doesn’t evaluate him based on typical marketing job description.
Why does the startup owner act this way?
- He runs a startup company. While he runs the company under a high level of uncertainty, the Board members hold him responsible for the company’s progress.
- He learned from other successful startups that it is wrong to start the business assuming that he knows the details of his customer’s. He is still learning customer’s needs and modifying the product or the service based on the feedback he gets.
- The entrepreneur doesn’t implement the knowledge that he has about business blindly. In There are successful companies offering the same services. Yet, the same does not mean that; when his startup company offers the same service and do the same things, he should expect to achieve the same success.
- He finds some aspects of the traditional management cause the waste of a lot of resources, which he can’t afford. It works hard to minimize waste.
- As everyone still learns the needs of the client, he or she should evaluate everyone according to their ability to learn.
- The company is unstable. There are many decisions that board members must make. There is a risk of making mistakes. The companies that have been in the market for ten years are fortunate to have passed this stage. They do not have to make more risky decisions that may cause them to go out of business.
- He can’t hire too many employees. One employee has to do a lot of things.
In conclusion, managing a stable company is different from running an emerging company. The tasks that are done within companies that are in business for more than five years are considered traditional tasks. On the other hand, startups are doing a lot of unconventional activities. And require the hiring of employees who have a great willingness to face change. They must be able to act with skill, intelligence and flexibility in conditions of instability.
Muhammad Helmy is a Business coach, Lawyer, Training package designer and Content writer. When coaching, Muhammad Helmy considers not only assisting Entrepreneur in solving the startup problems, but also developing a business model that offers unique value to the community.