Founder

I got my first paid job when I was 12 and used the money I earned to buy a bag for school. Since then, I’ve had a few part-time jobs, and through these experiences, I’ve learned a lot about the essential skills and qualities needed to build a business or startup. I wanted to clarify these lessons and write them down to reflect on what I’ve learned so far. I’ve shared my experiences as an employee in various roles and my thoughts on what makes a good founder. While I know I don’t have much experience yet and my ideas will likely evolve over time, these are the observations I’ve made so far.

Democratic Dictator

From my own experience, a founder should be a democratic dictator. Every employee should feel that their opinions matter and will be accepted or implemented if they are right and essential. However, as a founder, you should be feared, respected, but not hated (yes, I know it’s Machiavellianism, and he seems right on this matter).

It raises a question here: what do you mean by fear? Isn’t it counterintuitive to the idea of listening to employees’ opinions? Yes, it might sound so, but what I mean by fear is that unprofessional behavior and actions are not forgiven. For instance, employees should feel the fear of punishment if they make unprofessional mistakes—being late for work, repeating the same mistakes, talking or discussing personal matters at work, engaging in romantic relationships during work hours, leaking company information or data to other organizations, or manipulating other employees for personal gain.

In terms of relationships with employees, you should listen, pay attention, and accept their ideas so they feel they matter. But this doesn’t mean you should be friends with them, hang out together, or talk about personal life. You must keep certain boundaries, especially regarding personal matters. For example, you listen to every idea or opinion related to essential tasks, projects, ongoing research in your company, manager behavior, salary-related issues, etc. But you neither listen to nor discuss your personal life or that of your employees—issues like habits, clothing preferences, hairstyles, partners and so on.

Steve Jobs, Elon Musk, or Mark Zuckerberg are often said to be assholes, but you don’t need to be one if you aren’t naturally that way. It is better to be kind, encouraging, and approachable while being capable of firing, rebuking, punishing, or raising your voice confidently, cold-bloodedly, and without hesitation when necessary.

Don’t micromanage—let them do their own work. Don’t argue or stress your employees about minor matters. Turn a blind eye to some non-work-related mistakes or faults. For instance, in one of my part-time jobs, we needed to clean the office since there weren’t many employees and the office was relatively small. However, my boss never insisted on cleaning his own space. We would do it voluntarily, not because he asked or demanded. He wouldn’t say anything even if we cleaned the entire office but left his space untouched.

He did, however, demand that the office be kept clean and tidy in general. But when it came to his personal space, he didn’t impose on us to clean it. We respected him for this, and we voluntarily cleaned his space. He thanked us every time, and it felt different.

Hiring and Firing

When it comes to hiring or firing people, it is always hard to make the right decisions.

Hiring.
When you are a small startup trying to grow, you usually start with amateurs unless your idea is exceptionally cool or you have enough money to offer competitive salaries for experienced senior employees. One key trait to look for in employees is their interest and passion for the idea you are trying to build. It is easier to work with people who are genuinely excited about your mission rather than those applying for the position solely for salary or experience. Supplemental traits a founder should look for include energy, integrity, and intelligence—both emotional and mental. Employees who can work hard, be integrative, and think smart will grow your startup and business much better than those who are lazy, selfish, or unmotivated. However, it is not easy to find these qualities among amateurs. This leaves you with two choices: either hire professionals or train amateurs to become professionals. Both options have their pros and cons.

Amateurs are usually hungry to learn, gain experience, and contribute to something special. They listen to you more eagerly compared to senior employees. However, they may lack experience in real-life projects and non-work-related matters, such as punctuality, responsibility, teamwork, listening skills, and integrative thinking. By hiring amateurs, you get energetic, hungry, and manageable employees for lower salaries, but you must also consider the potential drawbacks of inexperience. On the other hand, senior employees are seasoned professionals with extensive knowledge, intuition, and experience. They are likely to grow your company more rapidly. However, they come with their own set of challenges. Some seniors can be a bit arrogant, harder to manage, or less energetic than younger employees. They often require higher salaries and specific working conditions. Both choices have trade-offs. If your startup can progress initially with amateurs, go for them. However, if you need professionals to get results from the early stages, pay the extra cost to hire them. OpenAI and DoorDash serve as good examples. The former required highly experienced, senior engineers and scientists right from the start, whereas DoorDash was built by college students. It really depends on your specific case and what your startup needs. Analyze your situation and hire accordingly.

Additionally, try not to hire your relatives, especially if they lack experience in the industry or business you are in. Doing so can confuse and potentially demotivate other employees. Ensure that managers, especially if they are relatives or relatively young, listen to senior and experienced employees. For instance, during my part-time job at a chicken kitchen, our manager was a relative of the owner. He didn’t have much experience, while we had a senior employee who had worked in the kitchen for seven years and had also worked with the owner before his retirement. The manager often insisted on preparing semi-finished products that weren’t essential. The senior employee repeatedly advised against it, but the manager ignored his suggestions. As a result, we sometimes prepared unnecessary products, leading to waste. After five or six times, the senior employee stopped offering advice, and we continued wasting resources. This experience highlights the importance of listening to employees, especially experienced ones, if you lack expertise in the field.

Firing.
When it comes to firing, a founder should never dismiss employees due to personal dislike. There should be clear and specific rules in place for termination, applicable to every company. Forgiving mistakes the first time is a good practice, but repeated offenses shouldn’t be tolerated. Punishments should be stricter with each recurrence and should be applied consistently to everyone. One of the main issues for me is that unprofessional behavior should not be forgiven. For example, if an employee repeatedly fails to maintain punctuality despite warnings, they should eventually be let go. Minor issues like this can spread like a virus, negatively affecting workplace culture. Additionally, there will likely be employees smarter than you in certain areas. Don’t ignore or fire them just because they frequently propose better solutions than you. Instead, learn how to manage and utilize their skills effectively. Avoid the temptation to enforce your opinion when you know a better solution exists.

General Considerations.
When hiring and firing, focus on the culture you want to build for your startup, whether it is centered on innovation, customer satisfaction, product excellence, or sales. This focus will make it easier to make these decisions based on your company’s values and beliefs. Strive to hire and fire employees based on their skills, experience, and contributions to your company, rather than personal preferences or biases. To minimize biases, discuss hiring or firing decisions with your managers or HR team. Establish clear criteria for both processes. Finally, consider the essential question of skills versus culture. As Brian Chesky (If I am not mistaken whether he said or not), founder and CEO of Airbnb, once said, figure out your culture and hire people who align with it. This is critical because some candidates may have strong skills, experience, or qualities but might not align with the values, beliefs, or culture you are fostering in your startup. In the long term, such hires may challenge the culture you are trying to build. Carefully weigh this consideration when making decisions.

Team vs Family

It’s often said that workplaces should adopt a "team" mentality rather than a "family" environment. While I support this approach, I acknowledge that the idea of a "family" workplace isn’t entirely bad. A family-like environment can foster kindness, empathy, and encouragement among coworkers. However, it tends to fall short in challenging times or when it comes to respecting personal boundaries. For instance, in one of my part-time jobs, the management embodied a "family" dynamic. Our manager—and even the main director—would frequently ask employees about their personal lives, such as their hairstyles (especially for women), relationships, or dressing styles. While this might have been acceptable to some, it made me uncomfortable. These were personal matters, and if I didn’t choose to share them, I felt they shouldn’t have been topics of discussion. I was there to work and contribute to our shared goals, not to divulge details about my private life. In contrast, at another job, my manager took a completely different approach. He never inquired about the personal lives of employees unless we voluntarily chose to share. Even when we commuted home together, he maintained professional boundaries. I respected him deeply for this. It showed that he valued us for our work and respected our privacy. This contrast taught me the value of a team-oriented work culture. A "team" mentality focuses on professionalism, mutual respect, and shared goals. While empathy and camaraderie can still exist, they are balanced with clear boundaries and a sense of purpose.

Last Words

Lastly, I wanted to talk a little about how to treat your employees. I do think there should be metrics to reward or punish your employees. They shouldn’t just be rewarded or punished unexpectedly or never be punished/rewarded, no matter how good or bad they are. For instance, if your sales increase due to your employees’ hard work, reward them in a way that motivates them to work hard and feel satisfied. In large companies or ambitious startups, rewards might be tied to completed ideas or missions, but in small businesses, it could be a raise in salary, supplemental off-days, or one-time monetary bonuses. Make sure your employees feel adequately compensated and inspired to continue working with you. Punishments should follow a similar structured approach. Metrics could include monetary penalties, reduced benefits, or additional work assignments. Figure out a system and ensure it is applied equally to everyone. However, try to understand why an employee is making mistakes—is it due to a lack of skills, personal problems, dissatisfaction with the job, or distraction? Addressing the root cause helps improve performance more effectively than simply punishing them.

When dealing with senior employees, avoid downgrading or criticizing them publicly, as it can undermine their confidence and discourage juniors who may feel threatened about their own job security. Instead, handle these issues privately through one-on-one conversations, where the focus is on growth and solutions rather than blame. This builds a sense of mutual respect and fosters better communication.

Treat everyone equally—this is one of the most essential principles. In my part-time job, for example, our managers, who were single men, treated women more kindly and leniently than men. While we didn’t want women to be treated poorly, we desired fairness when performing the same tasks under similar conditions. Over time, repeated instances of different treatments for the same mistakes created feelings of inequality. Fair treatment extends beyond gender to eliminate favoritism and ensure a unified and motivated workforce.

To conclude, I haven’t run a business yet, and my ideas may not be directly applicable to real-life situations. I wrote them down as a way to reflect and refine my thoughts over time, so I can apply them in the future when the opportunity arises. I hope you found something valuable or useful in this post. Peace.

Seoul, Korea

22/11/2024