Need to layoff a friend
|Jul 30, 2020|
As founders, we make decisions every day. Whether you like it or not.
Should I go no-code?
How can I promote my product?
Will I lose customers if I scrape feature x?
How much should I charge?
Employee Abc is not working well enough. What should I do?
We need to make decisions
Build in the open
Stay close to customers
Focus on customer retention
We have 4 months of runway remaining
If we don’t close any deal in the next month, I’ll need to let my friend go. Will give him 3 months notice.
The pressure of making a new sale had been with us since the beginning of the company.
Well, back in time
I was the only developer in my company. Things were getting busy. I need a new developer to help me. Invited my friend, we’d worked together. A fantastic Java developer/architect. A challenge and enormous risk for him. Gigantic responsibility to guarantee my friend’s future.
“I am in”.
We need more money
Then, we went for meetings and meetings with potential customers.
We still have time to strike a sale. But the clock is ticking.
Being a founder is being responsible for lives
My friend, his family, our contractors...I felt responsible for their success. My failure will have a huge impact in their lives.
I felt the pressure again.
But this time, I used my lessons learned
With only 4 months of runway left
We spent more time in our first client’s office.
Listening to users
Improving the tool
Building in the “open”
Learning their struggles
Getting used to their work
They kept coming with new problems. “Wait. Problems? I see money here! Let’s improve the tool and charge more!
Light at the end of the tunnel!”
A week before 3 months.
I have to announce my friend’s layoff. Don’t want to do that. I’m reluctant.
Then a new sale!
The same client paid for a new project!!
Uhuuu!! We’re all safe!! Phew!!
At the end
We ended up working together for the whole company’s existence. He was my right arm on the technical side.
I had made it clear that his salary was guaranteed for 1 year, when he joined.
No new sales in 1 year?
We would shut the company down.
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