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Maybe it is just me, but I've never seen the reason for being "transparent" about internal business processes. While I am certain that the HN crowd here finds

by jamroom 16y ago

Maybe it is just me, but I've never seen the reason for being "transparent" about internal business processes. While I am certain that the HN crowd here finds it interesting, our customers have never once asked us (in 8+ years) to divulge our monthly sales figures. We are 100% focused on our customers, and really don't worry what other entrepreneurs might think of our company. Does anyone here have any stats that show that being "open" about your sales/business processes improves the bottom line? That's something I'd love to see - even some anecdotal evidence from those that have tried it (i.e. you saw a boost in sales after becoming more transparent) would be nice. You can add us (Talldude Networks) as a successful (almost 8 years) "startup", completely self funded and roaring along.

bemmu 16y ago
A sort of indirect benefit, but I think patio11 will get more out of being open with BCC/Appointment Reminder than hurt by it. He's starting to become known, which will make it easier to find talent / co-founders / investors if he needs them later on. I doubt it will influence anyone to buy the software, though.
- jamroom 16y ago
  Yes - I definitely can see that being a plus. Can you think of any negatives though (besides hiring) that come from NOT being transparent? I think one of the biggest concerns small companies have is that divulging their monthly income can give their competition insights into their revenue stream and customer count - something that I know makes me a bit uneasy. But maybe there's a way to be more open/transparent without divulging "too much" information - and maybe there is a benefit in that to your customers?
  - cullenking 16y ago
    Not all companies need or can even hide customer counts. In our business, one can easily guess our userbase by looking at how many maps are in our database. We could hide the total number, but a few simple searches would give a person an idea of what it is. As a result, we publish user counts and route counts. I don't think there are great benefits, aside from showing our users we are growing and have some substance, however, I also don't see there being much harm. I can see a company that provides mockups or time management tools being able to hide this info (it's not intended to be publically consumed), but in our case it's difficult. I guess creating a sense of complacency in the competition is a good thing. They might be more worried if they were watching huge growth in a competitor, but if the underdog is coming up with big growth anyway, there isn't much the market leader can do to prevent it...
sdrinf 16y ago
It doesn't, but you miss an important point: essentially, the "product business community" -those, who are in for the long run- is a small one. The real ROI does not come from having more customers, but rather from business contacts, who can (and will) provide important info, and valuable insight, for you, at the right time, which will have real impact on your bottom line. There are, of course, many others way to do that, than blogging. But the level of needed transparency is roughly the same.
- jamroom 16y ago
  This is an interesting point - thank you. What would you consider the level of transparency to be? Does it mean sharing detailed revenue figures, or is it more about simply being open about your "growing pains"? Thanks!
  - sdrinf 16y ago
    The two most valuable insights I'm getting from the blogs mentioned above are: _context_, and _details_. Incidentally, revenue fits both (especially with patrick, where evolution is trackable). To get the most value out of business partners, you generally have to put us into a position, where educated guesses can be made about which lever might give you the best ROI, and what you shouldn't pull too much. You don't need detailed revenue figures to make this happen. But, you are in _business_. Your most important enabler is money. Business discussions relevance to business will be correlating with it's proximate to money.
- skmurphy 16y ago
  given your desire to join the "product business community" it would seem you should put some information in your profile so others can understand who you are and where you are coming from.
ahoyhere 16y ago
If your customers are fellow entrepreneurs, it's one way to lure them in. If your ideology involves the encouragement of more small biz, it's a way to further your mission. And if you do like both of those things, but don't think your customers need to know, then blog about it elsewhere. Most won't bother to search for it :)

by jamroom 16y ago

bemmu 16y ago

A sort of indirect benefit, but I think patio11 will get more out of being open with BCC/Appointment Reminder than hurt by it. He's starting to become known, which will make it easier to find talent / co-founders / investors if he needs them later on. I doubt it will influence anyone to buy the software, though.

jamroom 16y ago
Yes - I definitely can see that being a plus. Can you think of any negatives though (besides hiring) that come from NOT being transparent? I think one of the biggest concerns small companies have is that divulging their monthly income can give their competition insights into their revenue stream and customer count - something that I know makes me a bit uneasy. But maybe there's a way to be more open/transparent without divulging "too much" information - and maybe there is a benefit in that to your customers?
- cullenking 16y ago
  Not all companies need or can even hide customer counts. In our business, one can easily guess our userbase by looking at how many maps are in our database. We could hide the total number, but a few simple searches would give a person an idea of what it is. As a result, we publish user counts and route counts. I don't think there are great benefits, aside from showing our users we are growing and have some substance, however, I also don't see there being much harm. I can see a company that provides mockups or time management tools being able to hide this info (it's not intended to be publically consumed), but in our case it's difficult. I guess creating a sense of complacency in the competition is a good thing. They might be more worried if they were watching huge growth in a competitor, but if the underdog is coming up with big growth anyway, there isn't much the market leader can do to prevent it...

sdrinf 16y ago

It doesn't, but you miss an important point: essentially, the "product business community" -those, who are in for the long run- is a small one. The real ROI does not come from having more customers, but rather from business contacts, who can (and will) provide important info, and valuable insight, for you, at the right time, which will have real impact on your bottom line. There are, of course, many others way to do that, than blogging. But the level of needed transparency is roughly the same.

jamroom 16y ago
This is an interesting point - thank you. What would you consider the level of transparency to be? Does it mean sharing detailed revenue figures, or is it more about simply being open about your "growing pains"? Thanks!
- sdrinf 16y ago
  The two most valuable insights I'm getting from the blogs mentioned above are: _context_, and _details_. Incidentally, revenue fits both (especially with patrick, where evolution is trackable). To get the most value out of business partners, you generally have to put us into a position, where educated guesses can be made about which lever might give you the best ROI, and what you shouldn't pull too much. You don't need detailed revenue figures to make this happen. But, you are in _business_. Your most important enabler is money. Business discussions relevance to business will be correlating with it's proximate to money.
skmurphy 16y ago
given your desire to join the "product business community" it would seem you should put some information in your profile so others can understand who you are and where you are coming from.

ahoyhere 16y ago

If your customers are fellow entrepreneurs, it's one way to lure them in. If your ideology involves the encouragement of more small biz, it's a way to further your mission. And if you do like both of those things, but don't think your customers need to know, then blog about it elsewhere. Most won't bother to search for it :)