Five Myths About Startups

A recent post on GigaOM, an online resource for analysis and reports relative to the technology sector, cites five myths they say could “kill a startup.”  They include: 

Myth #1:  Hire Smart People and Let Them Do Their Magic

Truth:  Hire stars and let them do their magic.  IQ is sometimes less important than EQ (emotional quotient) in building a team and identifying true leaders.

Myth #2:  It’s About Your Great Idea

Truth:  It’s about your customers.  A killer idea on its own will not necessarily bring fame and fortune.   Successful products need to be launched at the right time and in response to customer needs.  Start beta testing your products early and engage in adaptive experimentation.

Myth #3:  Conflict is Bad

Truth:  Affective conflict is bad; cognitive conflict is good. Affective conflict is negative as it typically consists of heated arguments about how to do something or who should be in control of doing it.  It has been found to destroy morale and decrease performance.  Cognitive conflict on the other hand is characterized by healthy debates about what to do and why to do it.  It generates multiple strategic choices and allows for the weighing of options.

Myth #4:  It’s About Hard Work; Don’t Expect to Have a Life

Truth:  It’s about results … and you need a life.  Some companies have an unfortunate culture that when things get tough, people work harder and when things are good- they work even harder in order to keep the good times coming.  This leads to burnout, illness and turnover.  What’s more important is to have people who are intelligent enough to get the job done and who will work hard enough to accomplish the mission.  But it is effectiveness, not necessarily long hours, that drives performance and value.

Myth #5:  It’s an Uphill Battle Until One Day, When it All Comes Together

Truth:  It’s a rollercoaster ride.  As opposed to a single upward trajectory of hard work until a company is acquired or one large customer is signed, growing a business is full of ups and downs that rarely let up.

For more insights on these myths, see the story