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We get a lot of good advice from VCs across this site; I'd like to give some back: Talk to the "staff." You will never hear about many of the problems illustr
by dhimes 18y ago
We get a lot of good advice from VCs across this site; I'd like to give some back: Talk to the "staff." You will never hear about many of the problems illustrated by Tamerlin, for instance, or even the lowdown on edw519's "is the product any good?" from the CEO if the startup is in the early, rapidly evolving phase (where the product is still fluid and trying to fit the market).
The CEO will give the reports filtered through management, and a major underlying reason why startups fail is that they fail to see what (or who) is important.
Take the technical folks to lunch. If outside consultants are involved in, say, non-technical aspects (content development, design, etc.), take them also, but separately. Don't bring management. Let them talk freely and you'll get a much clearer picture of what and who is important to the company's success than you will if you only look through the CEO's eyes.
- anamax 18y agoAny employee/consultant who takes that lunch should be willing to have it be the "goodbye lunch".
- dhimes 18y agoIf the employee/consultant is the star and the company/investor can't see it, he or she is better off elsewhere.
- edw519 18y agoYou're walking a fine line here. Whether you're looking to invest, advise, or conduct analysis of some kind, it's always important to collect the best data you can. Naturally, getting technical appraisals from technical people is critical, and I completely agree with this thinking. But things like "take them also, but separately" and "Don't bring management" sound borderline underhanded. Without free and open communication about all aspects of the business you're conducting, you're just planting the seeds for distrust and concern down the line. Of course, most people will talk more freely without their boss or a video recorder in the room. Funny thing happens though when the boss is in the room or the video recorder is on. After the first 5 minutes, people still talk freely. In fact, this is the most desirous situation. You will uncover more when people are put together and encouraged (even rewarded) for being open and honest. Some of your best data will even come from their disagreements in front of you. If anyone ever went behind my back to gather data, it would tell me 2 things: - They're not doing all that they can to collect the best data. - I don't trust them, so I won't be doing business with them.
- dhimes 18y agoI respectfully, but wholly, disagree that it is underhanded. The CEO can know I'm doing it; in fact, the possibility I may do it can pay dividends in communication. But if I am a major investor in the company I will definitely want that point of view. Too often nobody is able to change management's perspective when it is critical to do so. Yes, they are collecting the best data because they are collecting data from multiple points of view. That is exactly the reason to do it.
- edw519 18y agoAs long as he knows, you're OK. It's not the collecting of data that I was concerned about. It was the implied secretiveness.
- dhimes 18y agoSorry for the confusion. I never meant to imply any secrecy.
- edw519 18y agoNo need to apologize. After rereading your post, I don't think you did. I may have been reading "between the lines". I definitely agree with your original post. Sounds like it was from someone who has been there. I guess I get a little sensitive these days when people take shortcuts without thinking things all the way through. My apology.