Aaron Epstein</a> is the cofounder of <a href=https://www.ycombinator.com/"https://creativemarket.com//">Creative Market</a>.</strong></p>\n<p>One of the most difficult things about starting a company is that you have to create both a product that people love and a company where people want to work <em>at the same time</em>. It’s usually not enough to <em>just</em> have a great product, or <em>just</em> be a great place to work, because great people build great products, and great people won’t tolerate a bad environment for very long.</p>\n<p>People leave managers, not companies, yet while most founders are obsessive about trying to build a product that people love, many first-time founders raise a bunch of money and start building a team without any management experience at all.</p>\n<p>I was one of those first-time founders who had to quickly learn on the job, so here’s some advice I wish someone had given me when I was just beginning to grow and manage a team at <a href=https://www.ycombinator.com/"https://creativemarket.com//">Creative Market</a>.</p>\n<p><strong>Delegate!</strong><br />\nAs a founder you’re used to doing it all, and it can be scary to shed responsibilities you’ve always owned, but you can’t scale yourself and focus on the highest leverage opportunities until you get things off your plate. If you think you’re going to have to work especially late or can’t get to the things you need to in a given day, take that as a signal to delegate to your team.</p>\n<p><strong>Create growth opportunities.</strong><br />\nGreat people often care about personal growth way more than money or any other tangible benefit you could offer them, so the flip-side of delegating your responsibilities is that you create opportunities for people on your team to do new things, learn, and grow. Don’t hoard them all for yourself.</p>\n<p><strong>Invest in your stars.</strong><br />\nSimilar to how it’s much easier to retain an existing customer than to acquire a new one, it’s much easier to keep an existing star employee happy than find a new star. Go above and beyond to make sure your stars feel valued, appreciated, and rewarded.</p>\n<p>Set a high bar. Great people want to do big, meaningful things. Push your team with aggressive goals, and you might be surprised what they will accomplish.</p>\n<p><strong>Lead by example.</strong><br />\nTeams embody the characteristics of their leaders, and the things you care about will be the things your team cares about. If you sweat the details, your team will learn to sweat the details too.</p>\n<p><strong>Your team’s success is your success.</strong><br />\nGet satisfaction and the feeling of accomplishment from the success of your team. As an individual contributor, it’s easy to look back at the end of a week and feel good about all that you’ve directly produced. As a manager, you’re responsible for the accomplishments of your team, which can be a difficult transition for a lot of people. The advantage is that you can scale yourself and your vision.</p>\n<p><strong>Deflect all credit and absorb all blame.</strong><br />\nUse “I” when talking about a screw-up, and use “we” (or better yet, specific contributors’ names) when talking about successes. A little recognition goes a long way to make people feel valued.</p>\n<p><strong>Share the big picture.</strong><br />\nIt’s important for people on your team to understand how their work and role fits into the big picture of the business, and why they’re doing what they’re doing. It’ll give them a sense of purpose and motivation to understand how they’re contributing to the success of the business. It’s easy to take it for granted that your team is clear on this, but this is one of those things where you want to constantly make that connection.</p>\n<p><strong>Repeat yourself often.</strong><br />\nYou should feel like you sound like a broken record about the things that are important to your company — your mission, your vision, your KPIs, etc. You think about it all the time, but the people on your team don’t, and most people need to hear something many times before it truly gets ingrained in their memory. You’ll know you’re repeating key messages enough when every single person on your team will be able to explain them to a complete stranger exactly how you would’ve said it.</p>\n<p><strong>You’re in charge.</strong><br />\nIt can be uncomfortable telling people what to do if you’ve never done it before. But you are the leader, and everyone on your team will be looking to you for direction and guidance, so own it. People want structure and direction, so don’t be afraid to use phrases like “I need…” and “I want…” to shape your team in your image.</p>\n<p><strong>Focus on the What, not the How.</strong><br />\nCommunicate your vision for what success looks like, to give your team a framework and goals to guide their decisions and work. It’s a way for you to “be in the room” when the work gets done without micromanaging the work.</p>\n<p><strong>Set deadlines and hold people accountable.</strong><br />\nWhen you give someone a task, ask “by when?”, then add a note to your calendar to follow up to make sure it’s complete. If standards or deadlines are not being met, give direct feedback to change future behavior.</p>\n<p><strong>Verbalize your thoughts.</strong><br />\nSimply saying things like “I’m disappointed in this work” is extremely powerful in helping people directly understand where you stand. People aren’t mind-readers, so rather than just jumping into solutions when giving feedback, state your feelings out loud to be clear and direct.</p>\n<p><strong>Manage for the employee.</strong><br />\nMy favorite interview question for manager candidates is “How would you describe your management style?”, where the best possible answer is “it depends on the employee”. Each person has a unique combination of experience, motivations, personality, etc, and it’s up to you to take the right management approach that helps them succeed and maximizes their contribution.</p>\n<p><strong>Understand that everyone’s different.</strong><br />\nJust because you may be an achiever that’s self-motivated to get things done doesn’t mean that everyone else on your team is. Get curious to figure out what drives and motivates each individual on your team, rather than assuming everyone’s like you.</p>\n<p><strong>Hire slow, fire fast.</strong><br />\nIt’s the thing everyone says and few have the discipline to do, but hiring well is the most important thing you can possibly do to positively impact your business and your team. Great people want to work with other great people, so resist the temptation to fill open positions with mediocre candidates, and don’t settle. You should be thrilled about each new hire.</p>\n<p>Hire for hunger. It’s great when a potential candidate walks in the door with all the skills needed to succeed in the role, but passion for your mission, business, and team will do more to drive an employee to make a big, long-term impact than any specific skills they may have. Passionate employees will be quicker to teach themselves new skills too, especially as your business changes and grows.</p>\n<p><strong>Set your team up for success.</strong><br />\nIt’s unfair to expect even the best people to hit the ground running on day one without being properly onboarded. As their manager, it’s your responsibility to invest the time early on to set expectations, show them the ropes, teach them about your business, train them, and provide clear direction and a well-defined role. Anything less will diminish their ability to succeed.</p>\n<p><strong>Your trust should be earned.</strong><br />\nDon’t just assume that new and more inexperienced team members will hit the ground running and understand your expectations from day one. Make them prove themselves first by working more closely with them and frequently reviewing their work until they’ve earned your full trust.</p>\n<p><strong>Shield your team from distractions.</strong><br />\nProvide structure, focus, and clear goals for your team to maximize their ability to execute on the strategy. They should come in to work each day knowing exactly what they’re working on and exactly what they need to do, and any other distractions should be deflected to keep from derailing productivity, wasting time, and knocking the team off course.</p>\n<p><strong>Include your team in decision-making.</strong><br />\nIf you’ve hired great people, you’d be crazy not to include them in important decisions. Define the decision-making process upfront to set expectations for your team — will it be a decision by committee, will someone else on your team own the decision, or will you gather feedback to make the final call yourself? Listen to their thoughts and opinions with an open mind, make sure everyone feels heard, then decide the best course of action. It may even go against the consensus of the team, and that’s ok so long as you’ve defined the process and expectations up front. Even if your team disagrees with the final call, by including them in the process they will better understand the decision, feel like their opinion was valued, and be able to get on board to help support the decision going forward.</p>\n<p><strong>A little professional tension is healthy.</strong><br />\nDiffering perspectives help make teams and products better, so a little professional tension can be really valuable to help push your team to think about things in new ways. It should be net-positive though, so if it’s forcing too many decisions to get stuck in the mud, or if the tension moves from professional to personal, then you need to take action to eliminate it quickly before it drags down the team or blows up.</p>\n<p><strong>Show your work.</strong><br />\nExplain your decision-making process. Whenever you take a controversial action or make a difficult decision, it’s especially powerful to fully explain how you arrived at that decision so your team can understand your thought process and rationale, and ultimate help support the decision.</p>\n<p><strong>It’s ok to not always know the answer.</strong><br />\nAsk questions, probe, and admit when you don’t know the answer to something. There’s nothing wrong with saying you’ll need some time to think or learn more before making an important decision.</p>\n<p><strong>Have consistent 1-on-1s every week.</strong><br />\nThese are for the benefit of your employees, so you should let them drive the agenda each week. From your side, it’s an opportunity to set aside some focused time each week to talk privately, get on the same page, and ask open-ended questions like “how are things going?”, “how are you feeling?”, “what are your thoughts on the big news that was announced earlier this week?”, “what’s your opinion on X?”, etc. Prioritize these meetings in your schedule, go out of your way to keep from canceling or rescheduling them whenever possible, and your consistent time and attention will send a signal to your team that you care about their happiness.</p>\n<p><strong>Ease the maker to manager transition.</strong><br />\nAs you scale from a team of individual contributors to a more structured org, the maker to manager transition will challenge your best people. Just because someone is an outstanding individual contributor doesn’t mean they’ll be an outstanding manager right off the bat, because it requires a completely different set of skills and experience. And during the transition, their instinct will be to take on both their prior maker and their new manager duties – spending 75% effort on making and 75% effort on managing – a 150% workload resulting in less than 100% output in each area. Put structure in place to allow them to focus on being a manager first and foremost, and take maker duties off of their plate.</p>\n<p><strong>Create a career path.</strong><br />\nEvery 6 months, ask your employees where they want to be in their career in the next 2–3 years. Work with them to put together a plan, help them get the skills and experience they need, and guide them on a course to get there.</p>\n<!--kg-card-end: html-->","comment_id":"1096641","feature_image":null,"featured":false,"visibility":"public","email_recipient_filter":"none","created_at":"2016-10-10T02:38:05.000-07:00","updated_at":"2021-10-20T13:19:22.000-07:00","published_at":"2016-10-10T02:38:05.000-07:00","custom_excerpt":null,"codeinjection_head":null,"codeinjection_foot":null,"custom_template":null,"canonical_url":null,"authors":[{"id":"61fe29e3c7139e0001a71070","name":"Aaron Epstein","slug":"aaron-epstein","profile_image":"/blog/content/images/2022/02/Aaron-E-2.jpg","cover_image":null,"bio":"Aaron is a Group Partner at YC. He was the co-founder and CEO of Creative Market (YC W10), a marketplace for graphic design assets, which was acquired by Autodesk in 2014.","website":null,"location":null,"facebook":null,"twitter":null,"meta_title":null,"meta_description":null,"url":"https://ghost.prod.ycinside.com/author/aaron-epstein/"}],"tags":[{"id":"61fe29efc7139e0001a71174","name":"Advice","slug":"advice","description":null,"feature_image":null,"visibility":"public","og_image":null,"og_title":null,"og_description":null,"twitter_image":null,"twitter_title":null,"twitter_description":null,"meta_title":null,"meta_description":null,"codeinjection_head":null,"codeinjection_foot":null,"canonical_url":null,"accent_color":null,"url":"https://ghost.prod.ycinside.com/tag/advice/"}],"primary_author":{"id":"61fe29e3c7139e0001a71070","name":"Aaron Epstein","slug":"aaron-epstein","profile_image":"https://ghost.prod.ycinside.com/content/images/2022/02/Aaron-E-2.jpg","cover_image":null,"bio":"Aaron is a Group Partner at YC. He was the co-founder and CEO of Creative Market (YC W10), a marketplace for graphic design assets, which was acquired by Autodesk in 2014.","website":null,"location":null,"facebook":null,"twitter":null,"meta_title":null,"meta_description":null,"url":"https://ghost.prod.ycinside.com/author/aaron-epstein/"},"primary_tag":{"id":"61fe29efc7139e0001a71174","name":"Advice","slug":"advice","description":null,"feature_image":null,"visibility":"public","og_image":null,"og_title":null,"og_description":null,"twitter_image":null,"twitter_title":null,"twitter_description":null,"meta_title":null,"meta_description":null,"codeinjection_head":null,"codeinjection_foot":null,"canonical_url":null,"accent_color":null,"url":"https://ghost.prod.ycinside.com/tag/advice/"},"url":"https://ghost.prod.ycinside.com/advice-for-new-managers/","excerpt":"Aaron Epstein [https://twitter.com/aaron_epstein] is the cofounder of Creative\nMarket [https://creativemarket.com/].\n\nOne of the most difficult things about starting a company is that you have to\ncreate both a product that people love and a company where people want to work \nat the same time. It’s usually not enough to just have a great product, or just \nbe a great place to work, because great people build great products, and great\npeople won’t tolerate a bad environment for very long.\n\nPeople l","reading_time":7,"access":true,"og_image":null,"og_title":null,"og_description":null,"twitter_image":null,"twitter_title":null,"twitter_description":null,"meta_title":null,"meta_description":null,"email_subject":null,"frontmatter":null,"feature_image_alt":null,"feature_image_caption":null},"mentions":[],"related_posts":[{"id":"62c640aadb59f2000159e618","uuid":"062e4f3f-c2e8-4f21-8a15-eb02adb47efe","title":"Same, Same but Different with Vanta and Zapier","slug":"same-same-but-different-with-vanta-and-zapier","html":"<p>Both <a href=https://www.ycombinator.com/"https://www.vanta.com//">Vanta CEO <a href=https://www.ycombinator.com/"https://twitter.com/christinacaci/">Christina Cacioppo</a> and <a href=https://www.ycombinator.com/"https://zapier.com//">Zapier CEO <a href=https://www.ycombinator.com/"https://twitter.com/wadefoster/">Wade Foster</a> made the decision to take a disciplined approach to fundraising. They flipped the equation of a typical startup founder: instead of raising money to enable a certain amount of growth, they eliminated the assumption of fundraising, controlled their spend, and evaluated how to ramp up spending based on what the business was bringing in. <br></p><p>YC’s <a href=https://www.ycombinator.com/"https://twitter.com/anuhariharan/">Anu Hariharan</a> sat down with Christina and Wade to talk about their unique funding history in our first episode of <a href=https://www.ycombinator.com/"https://www.ycombinator.com/blog/new-yc-audio-series-same-same-but-different/">Same, Same but Different.</a> </p><div class=\"kg-card kg-audio-card\"><img src=https://www.ycombinator.com/"https://ghost.prod.ycinside.com/content/media/2022/07/SSBD_Final_1_thumb.jpg?v=1657216763245\" alt=\"audio-thumbnail\" class=\"kg-audio-thumbnail\"><div class=\"kg-audio-thumbnail placeholder kg-audio-hide\"><svg width=\"24\" height=\"24\" fill=\"none\" xmlns=\"http://www.w3.org/2000/svg\"><path fill-rule=\"evenodd\" clip-rule=\"evenodd\" d=\"M7.5 15.33a.75.75 0 1 0 0 1.5.75.75 0 0 0 0-1.5Zm-2.25.75a2.25 2.25 0 1 1 4.5 0 2.25 2.25 0 0 1-4.5 0ZM15 13.83a.75.75 0 1 0 0 1.5.75.75 0 0 0 0-1.5Zm-2.25.75a2.25 2.25 0 1 1 4.5 0 2.25 2.25 0 0 1-4.5 0Z\"/><path fill-rule=\"evenodd\" clip-rule=\"evenodd\" d=\"M14.486 6.81A2.25 2.25 0 0 1 17.25 9v5.579a.75.75 0 0 1-1.5 0v-5.58a.75.75 0 0 0-.932-.727.755.755 0 0 1-.059.013l-4.465.744a.75.75 0 0 0-.544.72v6.33a.75.75 0 0 1-1.5 0v-6.33a2.25 2.25 0 0 1 1.763-2.194l4.473-.746Z\"/><path fill-rule=\"evenodd\" clip-rule=\"evenodd\" d=\"M3 1.5a.75.75 0 0 0-.75.75v19.5a.75.75 0 0 0 .75.75h18a.75.75 0 0 0 .75-.75V5.133a.75.75 0 0 0-.225-.535l-.002-.002-3-2.883A.75.75 0 0 0 18 1.5H3ZM1.409.659A2.25 2.25 0 0 1 3 0h15a2.25 2.25 0 0 1 1.568.637l.003.002 3 2.883a2.25 2.25 0 0 1 .679 1.61V21.75A2.25 2.25 0 0 1 21 24H3a2.25 2.25 0 0 1-2.25-2.25V2.25c0-.597.237-1.169.659-1.591Z\"/></svg></div><div class=\"kg-audio-player-container\"><audio src=https://www.ycombinator.com/"https://ghost.prod.ycinside.com/content/media/2022/07/SSBD_Final_1.mp3/" preload=\"metadata\"></audio><div class=\"kg-audio-title\">Same, Same but Different with Vanta and Zapier</div><div class=\"kg-audio-player\"><button class=\"kg-audio-play-icon\"><svg xmlns=\"http://www.w3.org/2000/svg\" viewBox=\"0 0 24 24\"><path d=\"M23.14 10.608 2.253.164A1.559 1.559 0 0 0 0 1.557v20.887a1.558 1.558 0 0 0 2.253 1.392L23.14 13.393a1.557 1.557 0 0 0 0-2.785Z\"/></svg></button><button class=\"kg-audio-pause-icon kg-audio-hide\"><svg xmlns=\"http://www.w3.org/2000/svg\" viewBox=\"0 0 24 24\"><rect x=\"3\" y=\"1\" width=\"7\" height=\"22\" rx=\"1.5\" ry=\"1.5\"/><rect x=\"14\" y=\"1\" width=\"7\" height=\"22\" rx=\"1.5\" ry=\"1.5\"/></svg></button><span class=\"kg-audio-current-time\">0:00</span><div class=\"kg-audio-time\">/<span class=\"kg-audio-duration\">59:28</span></div><input type=\"range\" class=\"kg-audio-seek-slider\" max=\"100\" value=\"0\"><button class=\"kg-audio-playback-rate\">1×</button><button class=\"kg-audio-unmute-icon\"><svg xmlns=\"http://www.w3.org/2000/svg\" viewBox=\"0 0 24 24\"><path d=\"M15.189 2.021a9.728 9.728 0 0 0-7.924 4.85.249.249 0 0 1-.221.133H5.25a3 3 0 0 0-3 3v2a3 3 0 0 0 3 3h1.794a.249.249 0 0 1 .221.133 9.73 9.73 0 0 0 7.924 4.85h.06a1 1 0 0 0 1-1V3.02a1 1 0 0 0-1.06-.998Z\"/></svg></button><button class=\"kg-audio-mute-icon kg-audio-hide\"><svg xmlns=\"http://www.w3.org/2000/svg\" viewBox=\"0 0 24 24\"><path d=\"M16.177 4.3a.248.248 0 0 0 .073-.176v-1.1a1 1 0 0 0-1.061-1 9.728 9.728 0 0 0-7.924 4.85.249.249 0 0 1-.221.133H5.25a3 3 0 0 0-3 3v2a3 3 0 0 0 3 3h.114a.251.251 0 0 0 .177-.073ZM23.707 1.706A1 1 0 0 0 22.293.292l-22 22a1 1 0 0 0 0 1.414l.009.009a1 1 0 0 0 1.405-.009l6.63-6.631A.251.251 0 0 1 8.515 17a.245.245 0 0 1 .177.075 10.081 10.081 0 0 0 6.5 2.92 1 1 0 0 0 1.061-1V9.266a.247.247 0 0 1 .073-.176Z\"/></svg></button><input type=\"range\" class=\"kg-audio-volume-slider\" max=\"100\" value=\"100\"></div></div></div><p><strong>You can also listen on <a href=https://www.ycombinator.com/"https://open.spotify.com/episode/3c1CmZtpzCqMa2MxXK845H?si=Ay6GBKIuT4OPfZePwUO4bQ\%22>Spotify, <a href=https://www.ycombinator.com/"https://podcasts.apple.com/us/podcast/158-same-same-but-different-with-vanta-and-zapier/id1236907421?i=1000569160335\%22>Apple Podcasts</a>, or <a href=https://www.ycombinator.com/"https://twitter.com/i/spaces/1vAxRkrNwoXKl/">Twitter. </strong><br></p><p><strong>3:20 </strong>- Christina, why did you wait so long before raising your first round?<br></p><p><em>Vanta was bootstrapped until raising a Series A round that ended up looking more like a traditional Series C. The company has surpassed 3,000 customers and is valued at $1.6B.</em><br></p><ul><li>Investors want to fund businesses that don't actually need funding.</li><li>Christina talks about ensuring they were truly building something that people wanted and finding product-market fit.<br></li></ul><p><strong>7:10 </strong>- Christina, what was the scale of Vanta when you decided to raise? Why did you decide to raise if you were cash-flow positive? <br></p><ul><li>Vanta had true signs of product-market fit, as shown by the impact of sales and marketing.</li><li>Christina talks about raising to ensure they didn’t lose the market they created. <br></li></ul><p><strong>10:50</strong> - Christina, how did you say no to the investors wanting to fund Vanta? What was your mental model? <br></p><ul><li>Be pragmatic with how you plan to spend funds; ensure the dilution from fundraising is worth it.</li><li>Christina talks about already hiring as quickly as possible and funds not helping with this challenge.<br></li></ul><p><strong>14:15 </strong>- Wade, tell us about your experience raising a seed and why you decided not to raise again. <br></p><p><em>Zapier raised only a $1.3M seed round in 2012 and has been profitable since 2014. The company is valued at $5B. </em><br></p><ul><li>Treat each funding round like it will be the last money you ever get.</li><li>Wade talks about his personal experience working for a quickly-growing, bootstrapped company, growing Zapier in a cost-effective way, and addressing constraints without fundraising. <br></li></ul><p><strong>20:00</strong> - Wade, did you always want to build a bootstrap company? When did you know Zapier had product-market fit and that it was a business model predisposed to being bootstrapped? <br></p><ul><li>When you make something people care about, it’s easy to sell to customers.</li><li>Don’t hire until it hurts.</li><li>Wade talks about finding product-market fit, their repeatable go-to market strategy to grow their base without a ton of capital, and their philosophy around hiring and building a remote company. <br></li></ul><p><strong>24:30</strong> - Wade, how did you attract talent without big headlines about fundraising news?<br></p><ul><li>Wade talks about hiring in a distributed way, writing about their learnings, and unique hiring tactics to raise the profile of Zapier as an employer. <br></li></ul><p><strong>27:00</strong> - Wade, what was the hardest part about hiring for a bootstrapped company? <br></p><ul><li>Wade talks about this not being an issue when hiring outside of Silicon Valley and already being profitable. <br></li></ul><p><strong>29:15</strong> - Christina, can you highlight Vanta’s journey to product-market fit?<br></p><ul><li>You can’t raise your way into the right product.</li><li>Christina shares insight into her first customers and advice on testing the value proposition with early users. <br></li></ul><p><strong>35:45 </strong>- Christina, when did you know you had product-market fit and what were the signs? <br></p><ul><li>The path to product-market fit isn’t linear.</li><li>Christina speaks to the mistake of focusing solely on hiring versus selling in the early days. <br></li></ul><p><strong>38:45 </strong>- Christina, how did you attract talent without big headlines about fundraising news?<br></p><ul><li>Christina shares how her pitch to candidates changed throughout Vanta’s journey. <br></li></ul><p><strong>44:10 </strong>- Wade, how has hiring changed since the pandemic? <br></p><ul><li>Wade speaks to more companies competing in this remote environment and how this is shifting again given today’s economic climate. <br></li></ul><p><strong>46:45</strong> - Wade, what is your advice for founders whether to fundraise or not? <br></p><ul><li>Determine the constraints in your business and figure out how to address those.</li><li>Wade shares their biggest challenges and his mental model to determine whether to raise or not raise. <br></li></ul><p><strong>49:00 </strong>- Wade, talk about your early days and how you were able to reach product-market fit as a remote company. <br></p><ul><li>When building a company, pick a lane: all remote or all in-office; the hybrid approach is the most challenging.</li><li>Wade talks about how this played out for Zapier, including working in-person with his co-founders the first few years and reaching product-market fit during this time. <br></li></ul><p><strong>51:15</strong> - Christina, do you recommend in-person, remote, or hybrid? <br></p><ul><li>Christina talks about the importance of documentation for remote and hybrid companies.<br></li></ul><p><strong>53:30 </strong>- Christina, how long in Vanta’s experience was in-person important? <br></p><ul><li>Christina shares the challenges of shifting from in-person to remote. <br></li></ul><p><strong>55:30 </strong>- Christina, how are you thinking about fundraising today in this funding environment and what advice do you have for founders? <br></p><ul><li>If you can, push your fundraising out — and if you can’t, it’s all about unit economics.</li><li>Christina talks about her recent experience fundraising (<a href=https://www.ycombinator.com/"https://www.vanta.com/blog/vanta-announces-series-b/">$110M Series B</a>) and the importance of metrics.<br></li></ul><p><strong>58:00 </strong>- Wade, what advice do you have for founders in this funding environment? <br></p><ul><li>Running a good business never goes out of style. Focus less on what investors care about and a lot more on what your customers care about.</li></ul>","comment_id":"62c640aadb59f2000159e618","feature_image":"/blog/content/images/2022/07/Same_Same_1600x900_72DPI.png","featured":false,"visibility":"public","email_recipient_filter":"none","created_at":"2022-07-06T19:10:50.000-07:00","updated_at":"2022-07-07T10:59:27.000-07:00","published_at":"2022-07-07T08:55:00.000-07:00","custom_excerpt":null,"codeinjection_head":null,"codeinjection_foot":null,"custom_template":null,"canonical_url":null,"authors":[{"id":"61fe29e3c7139e0001a7106f","name":"Y 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They flipped the equation of a typical startup founder: instead of raising money to enable a certain amount of growth, they eliminated the assumption of fundraising, controlled their spend, and evaluated how to ramp up spending based on what the business was bringing in. ","reading_time":4,"access":true,"og_image":null,"og_title":null,"og_description":null,"twitter_image":"https://ghost.prod.ycinside.com/content/images/2022/07/Same_Same_1600x900_72DPI-1.png","twitter_title":null,"twitter_description":null,"meta_title":null,"meta_description":null,"email_subject":null,"frontmatter":null,"feature_image_alt":null,"feature_image_caption":null},{"id":"62f15573ab52db0001d3b642","uuid":"e8dc2872-d758-4a06-ae83-b071c12240b3","title":"Learnings of a CEO: Wade Foster, Zapier","slug":"learnings-of-a-ceo-wade-foster-zapier","html":"<p>Welcome to the second edition of Learnings of a CEO. You can read the first edition <a href=https://www.ycombinator.com/"https://www.ycombinator.com/blog/learnings-of-a-ceo-max-rhodes-faire/">here. </p><p><a href=https://www.ycombinator.com/"https://zapier.com//">Zapier was founded in 2012 by <a href=https://www.ycombinator.com/"https://twitter.com/wadefoster/">Wade Foster</a>, <a href=https://www.ycombinator.com/"https://twitter.com/bryanhelmig?lang=en\%22>Bryan Helmig</a>, and <a href=https://www.ycombinator.com/"https://twitter.com/mikeknoop/">Mike Knoop</a>. The founders went through YC’s <a href=https://www.ycombinator.com/"https://www.ycombinator.com/companies/zapier/">Summer 2012 batch</a> and <a href=https://www.ycombinator.com/"https://www.ycombinator.com/growth-program/">S18 Growth Program</a>, and today, Zapier automates work by connecting with over 5,000 apps. The company has been profitable since 2014 and is valued at $5B – with 700 employees working remotely. Wade, Zapier CEO, shared his learnings growing into the role of a growth-stage CEO. </p><p><strong>How has your job as a CEO changed from leading a 3-person company in 2012 to a 700-person organization today? </strong></p><p>In the early days, you’re in the trenches with your co-founders and early employees splitting up tasks and touching nearly every part of the business. Often you’re writing code, selling products, recruiting, and helping with HR and finance functions. Today, Zapier is almost a team of 700 – and as we’ve grown, people have taken more and more duties from me to help the company grow and scale.</p><p>Now, one place I feel I am most needed is the vague concept of setting the vision and communicating that vision — and then ensuring everyone understands what we are doing, why it’s important, and their role in getting that done. This came naturally to me when we were small and I was in the trenches with everyone and communicating constantly. But as we hired more folks, I realized leaders were interpreting the vision to their team somewhat differently. I learned that if you are not communicating the vision well, you'll have teams that seem to be working on random projects. In isolation this isn’t bad, but as a collective set of tasks, you discover their work doesn’t fit into the vision. </p><p>We now repeat the vision over and over again in many formats. We put the vision in writing and it's constantly referenced; it's communicated at our all-hands; we bring in customers to talk about Zapier’s impact; we show data, so charts and figures can help tell the story; we have a company podcast. </p><p>When people inside the company start to turn the vision into a meme or Slack emoji, I know they really get the vision. Diagnostic tools, like employee engagement surveys, also help me understand how well employees understand why their role is important. It’s also evident when reviewing roadmaps. If a team’s tasks are tight and cohesive, I can tell they’ve been making tough decisions to align to the vision; if there are a bunch of random tasks, I can tell the vision hasn’t been communicated clearly. As a CEO, you have to ask, “Tell me how this is aligned,” and force those conversations to occur. Over time, people will get more comfortable with these types of assertive exercises. </p><p><strong>As you've grown, what changes have you had to make to keep everyone at your company aligned?</strong></p><p>We host weekly all hands, bring customers in to talk at those all hands, are transparent with metrics, and make sure those metrics are reflective of the good and the bad. Ultra transparency with metrics has served us well, as they are motivating and help people get aligned. People start to ask, \"How do we get these bad metrics to the good category?\" and then work towards change.</p><p>Being candid has also served us well. Whether at all hands, on a podcast, or solely talking with one of our leaders, we have candid conversations about why we didn’t hit a goal, why we were off schedule, why a deal didn’t close – and then immediately dive into what we think needs to happen next. The goal is to give awareness to the organization, so that in various meetings and forums people can try to figure out how to improve those areas.</p><p><strong>What's your advice to other founders on how to hire executives?</strong></p><p>Hiring executives is one of the hardest things you’ll do as a CEO. It's hard to determine when to start hiring executives, exactly what you’re looking for in an executive, and then find that person. </p><p>The best way to figure out when to start hiring executives is to meet with people who are unquestionably good executives at companies a stage or two further along. With no intention to hire them, meet with the VP of Engineering, VP of Marketing, and VP of People and ask, \"What are the things you do? What makes you great at this job? What do people in your job disagree on?”. Get as smart as you can on this topic and then compare and contrast what that set of leaders is telling you with how your company operates. If these executives wouldn’t bring anything new to the table, you may not be ready for that type of leader. This starts to help you answer the when part of the equation – and also the what, because you start to see what these folks are capable of and what they are not. </p><p>Part of determining what you should look for in an executive is understanding your own strengths and weaknesses. This requires honesty with yourself and internalizing feedback you have received. (I encourage folks to work with executive coaches and get 360 performance reviews.) Figuring this out helps you start to realize, \"Okay, within my executive team, I need people who will compliment me in these ways.\" Otherwise, you risk hiring a team that is quite capable and competent at their function, but actually may not work well with each other or with you.</p><p><strong>What is Zapier’s culture? What do you do to cultivate it as a remote company?</strong></p><p>We have a strong set of values that we align around. One is default to action. We hire folks who are action-oriented – and we have to as a distributed company; folks aren’t in situations where they notice someone next to them is stuck on something. So, they need to be curious, self-starters, and (figuratively) scratch and itch when they see something that doesn’t satisfy their innate drive. </p><p>Next, we value defaulting to transparency because folks who are action-oriented should be equipped with a ton of context. The mission, strategy, metrics, goals, systems and processes – all of it – is well documented and organized so people can find them and take action.</p><p>We also have a feedback-oriented culture. I teach a course on feedback to all the new folks to ensure they understand how to ensure they understand how to give and receive feedback effectively because it helps us grow. </p><p>The rest of our values are outlined <a href=https://www.ycombinator.com/"https://zapier.com/jobs/culture-and-values-at-zapier/">here, but these are some of the things that drive Zapier’s culture – and as you scale, it’s crucial to create different forums to communicate these values. We have an internal tool we named Async, which is email meets Reddit. The platform is public by default, anyone can post, and information can be targeted at different groups or people. We find this is great for long-form substantive topics that have a longer shelf life (1-2 weeks) versus Slack channels (1-2 days). We also hold all hands and have a company podcast, where we capture evergreen content. For example, when we have key moments in the company history, we’ll break it down: Why we did this thing, what led to that decision, the outcomes, why it is an important moment, etc. We have found podcasts to be helpful when onboarding new folks. </p><p><strong>Why did you decide to not raise any additional funding since your seed round?</strong></p><p>The only funding we took in the history of the company was a $1.3M seed round in 2012. This was partially philosophical and partially about the business. </p><p>The three of us co-founders had worked at a fast-growing, bootstrapped company owned 50/50 by two brothers. When we came out to the Valley (we were from Missouri), we started to hear this line of thinking, “No great company has ever done X.\" Some of these statements would center around the impact of venture funding, and I was dismissive in part because I had this counterexample from my time in Missouri. So, when we raised the seed round, we decided to treat it like the last round we’d ever raise.</p><p>Our second reason for not raising multiple rounds: Across the founding team, we had all the skill sets to do every job inside the company. That meant we didn't have to hire to make progress in the early days. We even had rules in place around hiring like, “Don’t hire until it hurts.” </p><p>Then there was the third, rational component: We were able to grow quickly without external funding because of Zapier’s network effect on our developer platform side. We're able to have low customer acquisition costs (mostly through organic channels), and this is intrinsic to how Zapier works. </p><p>Along the way, some of the philosophical thinking fell by the wayside by observing other companies and realizing fundraising is a tool like anything else. There are moments when it can help you, and there are moments when it can hinder you. You should strive to understand when external funding is a good tool to use versus when it is not – and then apply it if it makes sense for you.</p>","comment_id":"62f15573ab52db0001d3b642","feature_image":"/blog/content/images/2022/08/BlogTwitter-Image-Template.jpg","featured":false,"visibility":"public","email_recipient_filter":"none","created_at":"2022-08-08T11:26:59.000-07:00","updated_at":"2022-08-15T12:08:14.000-07:00","published_at":"2022-08-09T08:55:00.000-07:00","custom_excerpt":"Today, Zapier automates work by connecting with over 5,000 apps. 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","reading_time":6,"access":true,"og_image":null,"og_title":null,"og_description":null,"twitter_image":null,"twitter_title":null,"twitter_description":null,"meta_title":null,"meta_description":null,"email_subject":null,"frontmatter":null,"feature_image_alt":null,"feature_image_caption":null},{"id":"62d8038a3644180001d72a0d","uuid":"1d8947c7-4bd1-4f7c-8175-e3750393a8d1","title":"Learnings of a CEO: Max Rhodes, Faire","slug":"learnings-of-a-ceo-max-rhodes-faire","html":"<p>Every year, 200 YC companies go through our <a href=https://www.ycombinator.com/"https://www.ycombinator.com/about#continuity-1\">post-accelerator programs</a>. These programs provide founders with the resources they need to build a company all the way through IPO. One area covered extensively is how to scale as a CEO of a growth-stage company. </p><p>Outside of the YC community, little has been documented on best practices to be an effective CEO. We want to help founders everywhere scale and build enduring companies — and today, we’re launching a new series to do just that: Learnings of a CEO. </p><p>We’re kicking off this series with Max Rhodes, the co-founder and CEO of <a href=https://www.ycombinator.com/"https://www.faire.com//">Faire, a one-stop shop for wholesale. Before Faire, Max was an early product lead at Square, where he worked on the Cash App and was a founding member of Square Capital. Max and his co-founders were part of the <a href=https://www.ycombinator.com/"https://www.ycombinator.com/companies/faire/">W17 batch</a> and <a href=https://www.ycombinator.com/"https://www.ycombinator.com/growth-program/">F18 Growth Program</a>, and YC led Faire’s Series B and doubled down in their C-G rounds. Today, Faire has over 1,000 employees. </p><p><strong>How has your job as a CEO changed from seed stage to Series G?</strong></p><p>Much of my time is spent setting the vision and strategy for Faire and driving the execution of that strategy. This often feels like driving an aircraft carrier versus a speedboat, which is how I often describe leading a seed-stage company. In the early days, we were on a six-week product cycle, decisions were centralized (often with me making those decisions), and the entire company met daily for standups to stay aligned on our goals. Today, we are on a six-month product cycle, decisions are decentralized, and we have built systems that hold people accountable without needing consistent touchpoints. </p><p>As a thousand-person company, the number of products and features we can build has greatly increased, and we have to map out our strategy for the next 6-12 months to keep teams aligned. Communicating the strategy to the entire company requires multiple channels and repetition. We have a strategy doc that I collaborate on with the leadership team and share with the company; updates are provided at the half-year mark. We hold all-hands, where I share what is top of mind. We also have biweekly business review meetings, which are open to anyone; we also make the notes accessible. </p><p>Being able to decentralize decision making starts with hiring the best people and then arming them with the right information. Outside of meetings, we use OKR templates, track the history of our milestones, and create a collective body of work (in Notion and Google Slides) to provide everyone with direction. </p><p>We’ve organized the company in a way that lets us hold people accountable without needing constant touchpoints. The product development strategy is broken down into focus areas that each get assigned to a team. Each team is self-sufficient and has all of the technical and go-to-market people it needs. The team works autonomously to reach a metric. Every metric ties back to a top-level company goal, ensuring that teams are solving real customer problems.</p><p><strong>As you've grown, what changes have you had to make to keep everyone at your company aligned?</strong></p><p>We’ve experimented a lot: strategy docs, all-hands, documenting our 5Ss (the five most important initiatives across the company), and OKRs. There are pros and cons with OKRs. We use them as a guidepost rather than a measuring stick, to make sure we’re consistent in our planning and getting realigned on goals. </p><p>As we grow, some systems break. For example, I used to hold a biweekly business review meeting with each team. This was great when the company was broken up into three teams. With more than 15 teams, it became inefficient and borderline impossible. Eventually, these teams were organized into pillars, and each pillar was held accountable with a biweekly business review. My goal is to always find a balance between how much time it takes to coordinate versus execute, while designing information flows that don’t turn into silos. </p><p><strong>What's your advice to other founders on how to hire executives?</strong></p><p>First, clearly outline the outcomes you need the person to drive. Then, design a rigorous hiring process that evaluates whether they’ll be able to drive those outcomes and whether they share the same values as your company. We use a combination of behavioral interviews and work studies, where we see how they’ll perform at the job. We also extensively check references. </p><p><strong>What is Faire’s culture? What do you do to cultivate it?</strong></p><p>Our culture can be described by our five values. These underpin both why we are here and how we operate as a team. We’re still in the early days of building what this company will someday become and these operating principles help everyone at Faire maintain the spirit of entrepreneurship:</p><ol><li>We serve the community.</li><li>We seek the truth.</li><li>We are owners.</li><li>We embrace the adventure.</li><li>We are kind.</li></ol><p>To create this culture, it’s all about mechanisms. It starts with hiring. If we’re able to hire people who hold the same values and bring a new lens to the work, cultivating this culture is easy. We also embed the values into our feedback cycle and reward people for living them out. We give weekly shoutouts and recognize people, as well as hold quarterly value awards.</p><p><strong>Advice you would give to future leaders? </strong></p><p>Starting a company is hard, but it’s a lot easier if it’s something you care about, something that will impact the world. 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One of the most difficult things about starting a company is that you have to create both a product that people love and a company where people want to work at the same time. It’s usually not enough to just have a great product, or just be a great place to work, because great people build great products, and great people won’t tolerate a bad environment for very long.
People leave managers, not companies, yet while most founders are obsessive about trying to build a product that people love, many first-time founders raise a bunch of money and start building a team without any management experience at all.
I was one of those first-time founders who had to quickly learn on the job, so here’s some advice I wish someone had given me when I was just beginning to grow and manage a team at Creative Market.
Delegate!
As a founder you’re used to doing it all, and it can be scary to shed responsibilities you’ve always owned, but you can’t scale yourself and focus on the highest leverage opportunities until you get things off your plate. If you think you’re going to have to work especially late or can’t get to the things you need to in a given day, take that as a signal to delegate to your team.
Create growth opportunities.
Great people often care about personal growth way more than money or any other tangible benefit you could offer them, so the flip-side of delegating your responsibilities is that you create opportunities for people on your team to do new things, learn, and grow. Don’t hoard them all for yourself.
Invest in your stars.
Similar to how it’s much easier to retain an existing customer than to acquire a new one, it’s much easier to keep an existing star employee happy than find a new star. Go above and beyond to make sure your stars feel valued, appreciated, and rewarded.
Set a high bar. Great people want to do big, meaningful things. Push your team with aggressive goals, and you might be surprised what they will accomplish.
Lead by example.
Teams embody the characteristics of their leaders, and the things you care about will be the things your team cares about. If you sweat the details, your team will learn to sweat the details too.
Your team’s success is your success.
Get satisfaction and the feeling of accomplishment from the success of your team. As an individual contributor, it’s easy to look back at the end of a week and feel good about all that you’ve directly produced. As a manager, you’re responsible for the accomplishments of your team, which can be a difficult transition for a lot of people. The advantage is that you can scale yourself and your vision.
Deflect all credit and absorb all blame.
Use “I” when talking about a screw-up, and use “we” (or better yet, specific contributors’ names) when talking about successes. A little recognition goes a long way to make people feel valued.
Share the big picture.
It’s important for people on your team to understand how their work and role fits into the big picture of the business, and why they’re doing what they’re doing. It’ll give them a sense of purpose and motivation to understand how they’re contributing to the success of the business. It’s easy to take it for granted that your team is clear on this, but this is one of those things where you want to constantly make that connection.
Repeat yourself often.
You should feel like you sound like a broken record about the things that are important to your company — your mission, your vision, your KPIs, etc. You think about it all the time, but the people on your team don’t, and most people need to hear something many times before it truly gets ingrained in their memory. You’ll know you’re repeating key messages enough when every single person on your team will be able to explain them to a complete stranger exactly how you would’ve said it.
You’re in charge.
It can be uncomfortable telling people what to do if you’ve never done it before. But you are the leader, and everyone on your team will be looking to you for direction and guidance, so own it. People want structure and direction, so don’t be afraid to use phrases like “I need…” and “I want…” to shape your team in your image.
Focus on the What, not the How.
Communicate your vision for what success looks like, to give your team a framework and goals to guide their decisions and work. It’s a way for you to “be in the room” when the work gets done without micromanaging the work.
Set deadlines and hold people accountable.
When you give someone a task, ask “by when?”, then add a note to your calendar to follow up to make sure it’s complete. If standards or deadlines are not being met, give direct feedback to change future behavior.
Verbalize your thoughts.
Simply saying things like “I’m disappointed in this work” is extremely powerful in helping people directly understand where you stand. People aren’t mind-readers, so rather than just jumping into solutions when giving feedback, state your feelings out loud to be clear and direct.
Manage for the employee.
My favorite interview question for manager candidates is “How would you describe your management style?”, where the best possible answer is “it depends on the employee”. Each person has a unique combination of experience, motivations, personality, etc, and it’s up to you to take the right management approach that helps them succeed and maximizes their contribution.
Understand that everyone’s different.
Just because you may be an achiever that’s self-motivated to get things done doesn’t mean that everyone else on your team is. Get curious to figure out what drives and motivates each individual on your team, rather than assuming everyone’s like you.
Hire slow, fire fast.
It’s the thing everyone says and few have the discipline to do, but hiring well is the most important thing you can possibly do to positively impact your business and your team. Great people want to work with other great people, so resist the temptation to fill open positions with mediocre candidates, and don’t settle. You should be thrilled about each new hire.
Hire for hunger. It’s great when a potential candidate walks in the door with all the skills needed to succeed in the role, but passion for your mission, business, and team will do more to drive an employee to make a big, long-term impact than any specific skills they may have. Passionate employees will be quicker to teach themselves new skills too, especially as your business changes and grows.
Set your team up for success.
It’s unfair to expect even the best people to hit the ground running on day one without being properly onboarded. As their manager, it’s your responsibility to invest the time early on to set expectations, show them the ropes, teach them about your business, train them, and provide clear direction and a well-defined role. Anything less will diminish their ability to succeed.
Your trust should be earned.
Don’t just assume that new and more inexperienced team members will hit the ground running and understand your expectations from day one. Make them prove themselves first by working more closely with them and frequently reviewing their work until they’ve earned your full trust.
Shield your team from distractions.
Provide structure, focus, and clear goals for your team to maximize their ability to execute on the strategy. They should come in to work each day knowing exactly what they’re working on and exactly what they need to do, and any other distractions should be deflected to keep from derailing productivity, wasting time, and knocking the team off course.
Include your team in decision-making.
If you’ve hired great people, you’d be crazy not to include them in important decisions. Define the decision-making process upfront to set expectations for your team — will it be a decision by committee, will someone else on your team own the decision, or will you gather feedback to make the final call yourself? Listen to their thoughts and opinions with an open mind, make sure everyone feels heard, then decide the best course of action. It may even go against the consensus of the team, and that’s ok so long as you’ve defined the process and expectations up front. Even if your team disagrees with the final call, by including them in the process they will better understand the decision, feel like their opinion was valued, and be able to get on board to help support the decision going forward.
A little professional tension is healthy.
Differing perspectives help make teams and products better, so a little professional tension can be really valuable to help push your team to think about things in new ways. It should be net-positive though, so if it’s forcing too many decisions to get stuck in the mud, or if the tension moves from professional to personal, then you need to take action to eliminate it quickly before it drags down the team or blows up.
Show your work.
Explain your decision-making process. Whenever you take a controversial action or make a difficult decision, it’s especially powerful to fully explain how you arrived at that decision so your team can understand your thought process and rationale, and ultimate help support the decision.
It’s ok to not always know the answer.
Ask questions, probe, and admit when you don’t know the answer to something. There’s nothing wrong with saying you’ll need some time to think or learn more before making an important decision.
Have consistent 1-on-1s every week.
These are for the benefit of your employees, so you should let them drive the agenda each week. From your side, it’s an opportunity to set aside some focused time each week to talk privately, get on the same page, and ask open-ended questions like “how are things going?”, “how are you feeling?”, “what are your thoughts on the big news that was announced earlier this week?”, “what’s your opinion on X?”, etc. Prioritize these meetings in your schedule, go out of your way to keep from canceling or rescheduling them whenever possible, and your consistent time and attention will send a signal to your team that you care about their happiness.
Ease the maker to manager transition.
As you scale from a team of individual contributors to a more structured org, the maker to manager transition will challenge your best people. Just because someone is an outstanding individual contributor doesn’t mean they’ll be an outstanding manager right off the bat, because it requires a completely different set of skills and experience. And during the transition, their instinct will be to take on both their prior maker and their new manager duties – spending 75% effort on making and 75% effort on managing – a 150% workload resulting in less than 100% output in each area. Put structure in place to allow them to focus on being a manager first and foremost, and take maker duties off of their plate.
Create a career path.
Every 6 months, ask your employees where they want to be in their career in the next 2–3 years. Work with them to put together a plan, help them get the skills and experience they need, and guide them on a course to get there.
Aaron is a Group Partner at YC. He was the co-founder and CEO of Creative Market (YC W10), a marketplace for graphic design assets, which was acquired by Autodesk in 2014.