Startups’ pursuit of happiness (a.k.a. productivity)

Happiness, they say, comes from within.

Even though culture is a component of happiness inside startups, it’s not the driver.

Many communities around the world follow a culture that facilitates happiness. This, however, does not automatically make people happy.

Why?

Because we are hard-wired to achieve. From securing food to having a shelter that makes us feel safe. The sense of achievement that comes from attaining a goal makes us feel… well, happy.

Accomplishments are a good source of happiness, fulfilment, and endurance. 

So how can we build happier startups?

1.        Solving an existing problem (not a future one): having a product or service that is in demand is essential to get traction. Traction creates feedback in the currency of clients: if you are doing a good job you get more. If you have a long-term vision with no current demand, build an intermediary product before you get to your vision. Think SpaceX and Starlink.

2.        Unit financials (not unit economics): companies can be profitable but not cash flowing. You can sell a product at a 90% profit, but collect that money in 90 days. If you are just starting, this might mean you are not going to cash flow for the first 89 days after your sale.

3.        Leadership (not management): Driving business is not a hard skill. You do need managers to operate, but you need leaders to drive: sustain the effort, see the invisible (also known as ‘vision’), and provide clarity to your team.

This does not need to be overwhelming: it would make happiness/productivity impossible (and paradoxical).

It just means setting up shop with a plan that is robust in product, finance, and leadership. Achievement will follow: more clients, more profits, more cohesion.

Productivity will ensue.

And that makes everyone happy.