3 Lessons on Business Longevity from the Oldest Company in the World

Nishiyama Onsen Keiunkan Nishiyama Onsen Keiunkan is the oldest company in the world. Founded in 705 A.D., the Japanese hot spring hotel has operated continually for an astonishing 1,300 years. Think about it: this company has existed since before Charlemagne became the first emperor of the Holy Roman Empire.

Charlemagne crowned by the Pope The company’s founder, Fujiwara Mahito, was the son of a close aide to Emperor Tenji, Japan’s 38th emperor, and he built the hotel in a mountainous village in Hayakawa, Yamanashi Prefecture. It’s said that some of the most famous shoguns and samurai soaked in the hot springs there, so that when you go for a dip, you’re in good historical company.

Having survived a mind-blowing 52 generations of successive ownership within the same family, the hotel is no doubt a study on how to achieve longevity in business. Learn these three vital lessons from the hotel on building a business that lasts.

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The Psychology Behind Why Relaxing with TV after Work Leads to Feelings of Failure

Watching TV After Work

After a tough day at work, most of us just want to kick back, turn on the TV and relax. The harder you’ve worked, the more that you want to turn off your brain for a bit to de-stress. It makes total sense, right?

It turns out that watching TV after a stressful day at work doesn’t relax or rejuvenate you. It’s worse, according to a recent study. Watching TV after a stressful day leads to feelings of guilt and failure. It doesn’t give you the downtime you need to prepare for the next day, nor does it keep you in a neutral state — it actually depletes you.

The reason this happens is a bit of a paradox but the psychology will make sense to productive people — and it will arm you with the knowledge you need to do get proper rest and relaxation after work.

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A Googler’s Critique of Google Performance Reviews

google performance reviews

This post was written anonymously by a current Google and former Microsoft employee.  It details the author’s perspective on her first-hand experience with Google’s performance review system.

“Confidence… thrives on honesty, on honor, on the sacredness of obligations, on faithful protection and on unselfish performance. Without them it cannot live.”

–Franklin D. Roosevelt

Institutions are built on the trust and credibility of their members. This maxim holds true for employees and their employers just the same as it does for citizens and their government. Whereas the electoral process in modern democracies allows you and me to rate our government’s performance, performance rating systems make employees the subject of evaluation. In both cases, however, faith in the integrity of the process is the only thing that ensures order.

Managing a performance rating system that motivates, rewards, and retains talented employees across an organization tens of thousands large is a grueling, never-ending challenge. How does an organization balance values core to its DNA and its continued success — merit, openness, innovation, and loyalty — all while maintaining perceptions of fairness?

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How To Make Small Teams Actually Work With Terrible Communication

8981473860_427a454be6_kAmazon is a mess. In the words of one former Amazon.com engineer: “their hiring bar is incredibly inconsistent across teams,” “their operations are a mess,” “their facilities are dirt-smeared cube farms without a dime spent on decor or common meeting areas,” “their pay and benefits suck,” and “their code base is a disaster, with no engineering standards whatsoever except what individual teams choose to put in place.”

It’s madness! No, it’s Amazon.com. They do a lot of things totally wrong. But they make up for it (and then some) by doing one thing really, really right.

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This Startup Pays You to Learn How to Code

Jeff Vincent Wistia

Learning the new literacy of the 21st century doesn’t come cheap.

Hack Reactor, a code school in San Francisco, costs a breathtaking $17,780 in tuition for 12 weeks of instruction. A semester at Cornell Engineering costs $23,525.

But if you learn to code, the rewards are great. Hack Reactor boasts a 99% graduate hiring rate at an average annual salary of $105,000. A fresh, 22-year-old recent graduate of the computer science from Cornell can expect a salary around $95,670. In short, learning to code is one of the most valuable skills you can develop.

Companies like Wistia are offering a brilliant way around the expensive world of software engineering education. Wistia actively looks to hire non-technical people who want to learn how to code, pays them to work in customer support, and trains them on how to become a software developer. In time, the skills they develop rival what they’d learn in school, the employees are in a position to become professional developers, and they’re well-compensated to learn and grow in a supportive, practical setting.

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The Extreme Productivity Philosophy that Created Facebook and PayPal

mark zuckerberg growth

Back in 2005, long before they began approaching $10 billion in annual revenue, everyone thought that Facebook was a cool app, but no one thought that it would ever make any money.  Observers laughed at the idea that Facebook could be a real business.

With that backdrop of doubters and detractors, Noah Kagan, employee #30 at Facebook, pitched Mark Zuckerberg with what he thought was a genius idea: prove the Facebook skeptics wrong and show them that the fledgling startup could make real money.

As Kagan recounts the story, Mark listened to the pitch and then wrote out one word on a whiteboard: “GROWTH.” Then he “proclaimed he would not entertain ANY idea unless it helped Facebook grow by total number of ‘users.’”

To Zuckerberg and other Silicon Valley luminaries like PayPal billionaire Peter Thiel, the secret to productivity is this: focus is singular. You don’t get three or four or five. You only get one.

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The 60% Rule: The Humbling Reason Why It’s Vital that You Encourage Autonomy at Work

product visionaries

Breakthrough products are created out of thin air by a singular product visionary — your Steve Jobsian figure in a black turtleneck and a ponderous look. He yells at people and tells them what to do, until it’s perfect and done.

To Chris Savage, co-founder and CEO of Wistia, one of the biggest video hosting sites on the web for businesses, that’s a widespread misconception that can harm the way you run your business.

Chris has a rule of thumb on making product decisions that’s both incredibly humbling to all you Jobs disciples out there and imperative to grasp. The rule is this: the very best of us only get product decisions right 60% of the time. The rest of the time, we’re wrong.

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Why You Shouldn’t Build a Billion-Dollar Startup

billion (3)

Entrepreneurs dream about building the next big billion-dollar company. But the Apple, Google, and Facebook-shaped stars in their eyes end up clouding their vision. It’s easy to get caught up imagining your company going viral and getting to millions of users — all before your business has made a single dollar.

All the hopes and visions in the world won’t get you any closer to your billion-dollar exit. In fact, setting out to build a billion-dollar startup is one of the biggest mistakes you can make.

Gary Chou, an instructor at the School of Visual Arts in New York City, teaches his students how to launch a startup by taking a completely divergent approach. His course in Entrepreneurial Design has an unexpected syllabus for a business class: forget about creating a business plan or making a pitch deck for a fictitious billion-dollar unicorn company. Instead, get out there and do it — create a real $1,000-dollar company.

Chou’s assignment is to create a business that will produce $1,000 in monthly profit in a way that’s repeatable and sustainable. What has emerged from this exercise includes real profitable, ongoing businesses and funded Kickstarter projects. But beyond the money that’s been made and the companies created, what’s most important is the experience and knowledge you take away — for if you take on the challenge of building a $1,000 startup, you’ll learn three invaluable lessons.

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This Company Made Millions Because There Was Nothing Going On

harvest

Harvest is a multimillion-dollar, fantastically profitable, growing business that boasts thousands of customers from freelancers to Fortune 500 companies. The company has grown to over 30 employees and boasts one of the most beautiful tech offices in New York City.

But it’s how they did it that’s most impressive — over the course of 10 years, without a dime of outside investment, 100% bootstrapped, and in the city of New York.

In an age of tech celebrity, high-profile fundraises, and billion-dollar acquisitions, it’s how Harvest founders Shawn Liu and Danny Wen’s achieved success that you’ll find incredible. What Shawn told me was their secret ingredient is something you’ll never guess.

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3 Psychological Traps that Keep Your Startup in the Trough of Sorrow

startup-curve

You’re stuck in the trough of sorrow. No matter what you do, nothing in your company is improving.

You look around you, and everyone you know is crushing it. Their companies are getting acquired, they’re raising huge funding rounds, and they’re announcing new product features that people love.

But not you. You’re stuck in the trough of sorrow, and it feels like you’ll never get out. It’s emotionally trying and tough to handle psychologically, and you’ll want to quit. That’s why famed startup investor Paul Graham has said that the number one underlying cause of startup death is that “the [founders] become demoralized.”

How you handle those plateaus, psychologically, will determine whether you remain stalled there forever and your company ends up in the startup graveyard. You’ll face these three psychological traps — avoid them, and you’ll have a chance of making it out alive on the other side.

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