Do you remember your first job?
I sure do. The nerves, the excitement, and let's be honest, the complete cluelessness about office politics. Fast forward to today, and here I am, helping founders navigate the tricky waters of employee relationships.
Trust me, I've seen it all — from the "we're all family here" startups to the "strictly business" operations. And you know what? There's a sweet spot in between that can make your startup thrive.
If you’re building a startup, you know that your biggest asset isn’t just your product—it’s your team. But how do you protect your business and build a culture that wins?
Today, I'm going to share some hard-earned wisdom on building a winning startup team:
- The employee mindset you need to adopt (yes, even as a founder)
- Why contracts are your new best friend (and not for the reasons you think)
- The secret sauce to building a culture that actually works
- How to handle those awkward non-compete and layoff situations
Let's dive in.
1. Start by wearing the employee cap
As a founder, it's crucial to start by understanding the employee's perspective.
Before you see yourself as "the boss," put on the employee’s cap. When you understand their perspective, you become a more empathetic leader. I’ve been an employee, so I get it—the frustrations, the benefits, and the little mischiefs
You must also hold yourself to the same standards you expect from your team. This approach will make things a little bit easier.
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2. Document everything. Yes, everything
Gone are the days of handshake agreements. You need proper employment documentation.
Even the law says you must have a contract within three months of employment. This contract is your Bible—it governs your relationship with your employees. Are you documenting that relationship properly, or is it just “vibes and Inshallah”?
Are you documenting that relationship properly? Or is it just vibes' and 'Inshallah,'?
3. Employment contracts are not enough
While the employment contract is the Bible that regulates your relationship with your employees, it is not enough.
You also need solid standard operating procedures (SOPs). This ensures everyone knows the expectations—how we dress, how we communicate, what font we use when we send our documents, our time frame for responding to emails, how to protect client data, etc.
Read my article about protecting trade secrets if you haven’t.
How about remote work?
Remote work is the buzzword everyone’s talking about, right? But here’s the real question: do you actually have solid remote work policy in place?
Think about it. Your employee is working from home, but which home are they working from? Is it a quiet space in their house, or could it be your competitor’s office? The line between professional and personal gets blurry fast, and that’s where the risk comes in.
How are you protecting your data? How are you safeguarding your client’s secrets? It’s not enough to just hand out laptops and sign basic contracts. You need clear policies and proper documentation that outline how remote work should be handled.
Without an SOP, building a culture that supports your vision becomes nearly impossible.
4. Have realistic expectations about employee buy-in
Culture isn’t just a buzzword. It’s the framework within which your team operates. It defines your outputs and keeps your startup on track.
But remember, the vision is yours, not your employees’.
You can't force the vision on your team; you can only sell it to them.
They have a right to buy or reject it. But what they don't have a right to do is refuse the job for which you have employed and pay them for.
Your employees can buy into the vision, but they won’t have the same level of commitment you do. And that’s okay.
I work late. But my team? They clock out at a reasonable hour.
Why? Because it’s my vision, not theirs. Their job is to do the work they’re paid to do. My job is to get the best out of them within those hours. Respecting their time is crucial for maintaining a healthy work-life balance.
5. Your job isn’t over when they leave
Building a strong team isn’t just about hiring the right people and documentation—it’s about managing those relationships carefully, even when they leave. One area where this balance is critical is in non-compete clauses.
Non-competes are tricky. They’re legal, but they can cross the line if overdone. Telling an employee they can’t work for a competitor for six months, for example, could mean taking away their livelihood, especially if they're a professional.
Of course, no one wants to run a business where they employ people, expose them to the secrets of the trade, and they take it and run off to their competitor. However it’s crucial to find a fair balance.
Layoffs and terminations are different stories. Layoffs usually happen due to economic reasons or redundancy. The employee gets their benefits and a good recommendation to help them find their next job.
Termination, though, is about misconduct. If someone breaks the rules, termination may follow, and they could lose certain benefits, including recommendations for future jobs.
Some not-so-legal lessons for founders
Bring in people who can manage others
Founders are often not great administrators—we’re too focused on innovation, which can make us eccentric.
Eccentricity is one thing that does not necessarily work very well in corporate environments. Some days you don't feel like talking to anybody. Other days you're pissed off, and some days you could scream at people. You're not allowed to do that. When it gets too much, the environment becomes toxic.
Look at Steve Jobs and Tim Cook: Jobs innovated; Cook managed. You don’t have to do it all. Start lean, delegate what you can’t handle, and grow at a pace that’s manageable.
Why did Steve Jobs bring in Tim Cook? Tim knew almost nothing about innovation but everything about people, culture, and management. Steve knew nothing about people management but everything about innovation. He outsourced people management and administration to Tim Cook and focused on what he could do best.
Start lean, and don’t bite off more than you can chew
Delegate what you cannot do and focus on what you can do well. Now, it all comes down to money. Can you afford to bring in the right team? If not, start lean.
Starting lean isn’t just smart, it’s necessary. Don’t bite off more than you can chew. Your growth should match your capacity.
If you’re overwhelmed by demand, pace yourself. The worst thing is to start strong and then crumble because you couldn’t keep up.