Ask HN: What are the dos and donts of startup in large companies?

https://news.ycombinator.com/item?id=29663182

by pklee • 5 years ago

1 2 5 years ago

news.ycombinator.com

What is the best way to structure teams ? Create equity ? Establish as a business unit ?

riskpeep• 5 years ago

Can you describe a bit more what you mean 'startup in large companies.' There are definitely some things to know, but only if I'm understanding what you're asking about.

At a minimum, you might start with understanding that there are essential differences between existing large organizations and startups. Most noteably that startups exist to SEARCH for a business model that works. In this world, failure is a 'good' thing if it produces learning about the product you 'should' be building. In contrast large organizations exist to EXECUTE a functioning business model. In that world failure of any kind (to hit a growth target, to generate a certain amount of revenue, etc.) is a career ending mistake.

For this reason, startup in a large organization is hard because everything about the organizational structure is about execution. The metrics you'll be evaluated on are about execution, not about learning and assessing progress towards product market fit. Even if you think it will be different it won't because there will always be one level higher in the organization that doesn't really fully GET this difference and try to impose execution metrics or leadership styles on your 'startup' team.

Steve Blank has a LOT of really good content about this difference and some others about how to do B2B product development.

I'd start here - https://steveblank.com/2012/03/05/search-versus-execute/

And then read on until you've mined his message fully.

pklee• 5 years ago

Of course. Assume somewhat of a big services company. There are many customer related problems that can be solved using products. Assuming such a product can be created. What should be the structure of the team that handles such products ? What should be the equity structure etc. Does that help ?

Ask HN: What are the dos and donts of startup in large companies?

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