The only true data

During the first years of activity, all startup founders — and more generally company founders — ask themselves a billion questions. Most of them are operational and short-term issues, others relate to long-term or strategy matters.

How to increase sales? How to find customers? How to hire? How to manage the company development? To answer all these questions, little clue, no crystal ball (some tried and had problems).

It is therefore natural, to find answers, or at least to see things more clearly, that most of us turn to the ‘famous’ data. I would say some of us even dive into the data.

Forecast tables, reports, analytics; every tool is a good one to enlighten one’s path into company development. While focusing on data, many lose themselves and lose sight of the essential.

Indeed, most of the data that we “monitor” constantly are obsolete and unimportant. Moreover, spending time on these data and setting goals will divert the real issues of the fateful course of the first years of existence of a company and its societal role.

Let me explain. The early years of a company are fragile, financially speaking, it is obvious. In terms of the business project and on the human level, it is even more fragile. Corporate culture, and company DNA, are built during its first 18 to 24 months of activity. They are the only real data that a company should focus on during its first 2 years.

Both, the financial aspect and the corporate culture are vital constants of the chick that has just hatched. But I am a strong supporter of “Culture First”.

Financial assets, growth, and objectives are meaningless if the culture, the values of the company are not clearly defined, healthy and authentic.

Indeed, let’s take an example to support my opinion. Let’s say a company named “GrowthAndProfit” is failing to build a healthy corporate values, vision and culture. It’s very likely that:

• Employees will not stay or will have little enthusiasm in their missions because they do not see any (mission) -> Strong turnover
• Partners, customers, suppliers will see GrowthAndProfit as a traditional company without real project or culture, no differentiation (so little competitive advantage)
• Both your company mission, and the meaning of its employees’ missions have an important impact on our society. Without them our society is less rich, just and advanced.

Eventually, if GrowthAndProfit is a company that can work properly financially (cashflow, profitability…) on a short-term basis; on a human and societal level, GrowthAndProfit brings nothing or almost. In fact, this company is already dead or kind of, and just does not know it yet.

Let’s take now the company “CultureFirst” which pays a peculiar attention (even an obsession) to the well-being and the blossoming of its collaborators, working on clear values and mission.

A company where the only real data is quality of life at work, achievement, sense, and respect for employees.

This business, (prudently managed, financially speaking) will undoubtedly exceed the first because:

• Employees will stay in this company where it is good to work (low turnover)
• This company will sound more attractive to candidates (and, in addition, to the best ones)
• Partners will also be more likely to want to collaborate with such a company. (values, differentiation, communication, culture)

Everyone knows Cash Flow, but what about “HappinessFlow”, “SenseFlow”?

The financial aspects are only basic indicators. The true indicators are more subtle, and focus on your values, your mission for your collaborators and for the company.

Think about it for a minute: How do you manage? What place do you give to your employees? What company do you want to create? What are your values? What is your mission? Is it clear and well-known to all?

Do not overlook these points, they are paramount; everything else arises from it.