Jason Calacanis, the CEO of Mahalo.com, a human powered search engine, recently blogged about “How to save money running a startup (17 really good tips)“. In his post he talks about money saving techniques like investing in chairs instead of tables and automatic expresso-making machines so that minutes aren’t wasted going to starbucks and the like.
Fire people who are not workaholics. don’t love their work… come on folks, this is startup life, it’s not a game. don’t work at a startup if you’re not into it–go work at the post office or starbucks if you’re not into it you want balance in your life. For realz.
This tip drew flak from readers, sparking off some big debate over at TechCrunch, inspiring 2 opposing articles – Michael Arrington’s “Startups Must Hire The Right People And Watch Every Penny. Or Fail.” and Duncan Riley’s “Calacanis Fires People Who Have a Life“.
No matter how you look at it, start-ups are a different ball game altogether.
“If you’ve got a product to launch and you’re ultimately trying to disrupt a bigger and better funded company, it’s likely that you are going to need a superhuman effort from the team. I doubt Google’s early employees complained about the hours (and take a wild guess as to why Google gives employees free lunch and free dinners).” – Michael Arrington.
Unlike big corporate companies which have the finances, for a start-up, every dollar lets your company function for that little amount of time you need to get deals in and gain returns. Wasting money is a surefire way to failure.
Hiring the right people is also of paramount importance – this is especially true of most start-ups who have tight budgets for hiring workers. Ultimately, passionate workers who really have the desire to contribute and carry forth the company’s vision would be a stepping stone towards success (for a rough idea of what one’s passion for work is, check out the comic! Courtesy of http://www.xkcd.com/).