The tech sector is based on human rather than physical assets: not on machinery or warehouses but on talented specialists and innovations. Competition is fierce, and success often hinges on adaptability in an ever-changing environment. Speed takes precedence, where the ability to launch a product swiftly can outweigh even its quality. If you have any experience in software development, all these issues definitely sound like a daily routine.
But what if you are about to launch your own startup? What if your project’s ambitions go all the way to Unicorn heights? In this case, you are going to face additional and (most probably) unfamiliar obstacles. These include workforce challenges, management issues, insufficient investment in innovation, and neglect of technical branding.
Having been a developer myself, I’ve encountered all these issues firsthand. With insight into what motivates tech teams and drives project success, I’m here to share actionable strategies to address these problems. Let’s get started!
Trap #1: Developers Cannot (Should Not) Be Overcontrolled
Does this sound familiar? Your development team assures you that everything’s on track, but as deadlines approach, reality proves otherwise. The system is far from completion, key features don’t work, and unforeseen problems keep cropping up.
If you’ve experienced this despite your best efforts at control, you may wonder: Is such control even possible? Also, keep in mind that managing a dev team as a tech lead is quite different from managing a startup as a founder. While settling on your new track, you could easily fall into the trap of hypercontrol and micromanagement. And you are not alone in this. According to a survey by Forbes, 43% of employees say their online activity is monitored, yet only 32% were officially informed about that. Fair enough, employees are not happy with such practices: 27% of respondents said they would likely quit if their employer began tracking online activity.
Startups may be particularly vulnerable to this problem, as it is very common in smaller companies with immature processes. I once worked in a firm where leadership was obsessed with micromanagement. Instead of setting up proper workflows from the beginning, they opted for a “let’s just get started” approach. Plans were discussed, work commenced, and progress seemed fine until the boss started making panic-driven calls, demanding updates. Explaining everything to someone with no technical understanding took an entire day, repeatedly disrupting progress. The root of this problem is a lack of understanding and an inability to establish systematic processes. Uncertainty breeds anxiety, which leads to a desire for control, draining time, energy, and motivation.
Are there any viable replacements for micromanagement and the ‘Big Brother’ approach that could help you control your team’s performance? I am quite positive about that. Here are just a few simple recipes:
1. Foster Open Communication
You are a leader of the pack now, and you better be a good one. Good leaders maintain an approachable, transparent dialogue with their team. Discuss your plans openly, ensuring alignment between developers’ goals (e.g., writing elegant code) and management’s priorities (e.g., deadlines, budgets).
2. Trust Your Specialists
Remember, you hired them because they’re experts. You may have been a brilliant tech expert yourself once, but now your role is different. Let them do their job and do yours, focusing on the bigger picture.
3. Remote Work Is No Enemy
Some managers believe in-office supervision works better, but forcing everyone back into the office these days risks losing top talent. But 100% remote is not suitable for everyone, too. So, try to offer flexibility, allowing employees to choose their preferred work setup. Being an experienced developer, you know exactly what the most common problem is. And it is poor management, not the physical location where people write code.
4. Avoid Unnecessary Daily Stand-Ups
Daily meetings that drag on past 15 minutes are counterproductive. Weekly calls for updates and Q&A are often far more effective. Management newbies often get fooled by theorists that encourage sticking to dogmas. But in fact, every team management practice you employ should be reasonable, useful, and well thought of. Bringing in a shiny new ritual just because it’s trendy this season is a bad, bad idea. Do you remember how annoying corporate rituals can be for a developer? You preferred to be controlled by task management and tracking, didn’t you? So stick to that practice in your new position.
5. Set Clear Metrics
Use indicators like time-to-market, system stability, and user feedback to monitor progress and identify bottlenecks. With metrics, you will have a bigger picture of your project’s wellbeing without delving too deep into technical details.
Trap #2: Lack of Investment in Your Startup’s Future
Let’s go fast forward to a time when your company receives its first money. Be it a seed investment round or sales revenue, the temptation is always the same: you will want to spend it on something fancy and unnecessary. This is a major trap that many startups and even bigger companies fall into.
For instance, in one web studio, instead of investing in development or improving workflows, the founder regularly showed up in yet another brand-new car. Little wonder, the team was dissatisfied, employee turnover remained consistently high, and the studio stagnated. Remarkably, this company is still around today, with the same website it had 15 years ago. They’re still using technologies and designs from the early 2010s, while the mid-2020s are already here. Unsurprisingly, they’ve fallen far behind their competitors, though their boss seems to spend his time partying without concern.
From smaller studios to international majors, this problem is, indeed, a global one. According to the Global Innovation Index 2024 (the latest available at the time of writing) by the World Intellectual Property Organization (WIPO), investment in science and innovation made a significant downturn in 2023, following a boom between 2020 and 2022. Venture capital and scientific publications declined sharply back to pre-pandemic levels, and corporate R&D spending also slowed, resembling the post-2009 crisis deceleration. According to WIPO, the outlook for 2024 and 2025 is ‘unusually uncertain.’
In tech, competition is fierce, and success belongs to those who can adapt quickly. However, during tough economic times, many companies hesitate to take bold steps, fearing the costs and risks involved. So, what’s the solution?
1. R&D Is Essential
No matter how small your startup is, you can (and you should) set aside a budget for research that will support you in the future. Introduce dedicated R&D days, or special budgets for experimentation. Google has successfully implemented a policy known as ‘20% time’ (Innovation Time Off), allowing employees to work on personal projects. This initiative has led to the creation of major products like Gmail and Google Maps. When people work on things they’re passionate about, they tend to be more motivated and productive. I’ve experienced this firsthand.
Moreover, such opportunities allow employees to gain new skills and broaden their expertise, knowledge that can later translate into tangible business gains for the company. Keep in mind that not all projects will yield immediate results, but such investments shape the future of your company. Companies like Apple and Tesla dedicate substantial resources to experimentation and cutting-edge technologies, enabling them to remain leaders in their industries.
2. Grant Developers a Degree of Freedom
It’s crucial to agree upfront that while this time allows them to choose their tasks, it’s still considered work time, meaning the company retains ownership rights to any resulting product. In return, employees get the chance to bring their ideas to life and potentially join the team behind a new product. What developer wouldn’t want to make history by creating something truly groundbreaking?
3. Don’t Limit Yourself to a Single Niche or Product
Take Amazon and Microsoft as examples: these companies are known for their globally popular products but have also invested heavily in diverse areas, from cloud technologies to artificial intelligence. This approach helps them maintain their market leadership. Even smaller companies can allocate part of their budget to exploring new directions that complement their current business model.
4. Don’t Be Afraid to Experiment
Bold decision-making can give your projects a competitive edge. Look at Atlassian, for example: the company has internal programs that encourage employees to experiment with technologies without fear of failure. This approach has dramatically increased the pace of innovation within their teams. Remember: in the ever-changing tech landscape, taking risks and fostering a culture of innovation isn’t just an option. It is a necessity for long-term success.
Trap #3: Poor Management
Promoting people who were with you from the start (and those were probably developers like you) is the most natural and intuitive move. But beware and think twice. Chances are that this promotion will not make anyone happier. Professional managers are often a much wiser choice, and your old buddies might be better off continuing their work in development. A joint research by scholars from Boston University and the University of Kansas found that software developers transition to management roles more frequently than specialists in other fields. However, without skills in motivation, planning, or communication, they may struggle with delegating or balancing technical and business needs.
Here is a real-life example. In a company where a friend of mine used to work, there was a former developer who transitioned to a managerial role. He was enticed by the higher pay and didn’t see any other path for career growth. However, he lacked management experience and had no communication skills. Deep down, he still wanted to write code rather than manage a team. As a result, he ended up causing more harm than good. His poor leadership drove experienced developers to leave, staff turnover increased, and the quality of the project declined. Some of these unlucky managers even take on parallel jobs and cause problems there as well. Many eventually realize (though not all will admit it) that management isn’t for them and return to development.
By then, however, they’ve lost their technical skills and fallen behind on new technologies. That guy could have grown in a technical direction, becoming, for example, a tech lead. Managers are more like psychologists and career mentors: their job is to resolve conflicts and unite the team. A tech lead, on the other hand, is a technical mentor who ensures that solutions are effective and don’t compromise the system.
Here is what you can do to tackle these issues:
- Hire professional managers. Invest in managers skilled in planning, team motivation, and process building, even if they lack technical expertise.
- Define clear roles. Make sure managers manage, not code. Mixing responsibilities leads to inefficiencies.
- Support managerial growth. If growing developers into managers is your conscious choice, do it wisely and carefully. Provide training programs on Agile, Scrum, or Kanban methodologies, as well as on soft skills like conflict resolution.
- Introduce mentorship programs. Pair new managers with seasoned leaders. This will help newbies avoid common pitfalls.
Trap #4: Neglecting Your Technical Brand
It is crucial to build your technical brand from the very beginning. By default, any tech startup is based on new ideas, so you already have something to begin with. Your company should be in the limelight as an innovator, a promoter of new solutions, and an active member of the tech community. This will be a huge bonus, as you will be more attractive to your employees, potential investors, and partners alike. If you don’t have enough money, you can invest your time, and it will pay off sooner than you can imagine. Keep this in mind as your company grows: a strong tech brand is a constant process rather than a result that you can achieve and then move on to something else.
I once worked at a company that initially invested in building its brand and gained recognition. But over time, new leadership decided it was a waste of time and money. We asked for a humble budget to participate in conferences, hire a copywriter, and publish articles in a blog about our ideas and achievements, but it was all in vain. As a result, employees lost motivation, and the company became far less appealing to potential hires.
The importance of these investments is mostly understood by large, well-established companies, but even there, some fail to grasp it. Every developer wants to be part of a vibrant, almost cult-like community of top-tier professionals. Building this community or ‘cult,’ in the best sense of the word, is a joint effort between the company and its employees. This desire is so strong that companies with a well-developed technical brand have the luxury of attracting top-quality talent at lower costs. Developers, in turn, satisfy their ambitions and add an impressive credential to their résumés. It’s a win-win for everyone. So, how do you develop a strong technical brand?
1. Foster an Internal Culture Supporting Professional Growth
Your team members should feel encouraged to give conference talks, publish articles, or participate in hackathons. Help them prepare materials, fund their travel, and allow time for personal or open-source projects. While some companies hire dedicated DevRel (Developer Relations) specialists for this, it’s possible to achieve results without one. What matters most is committing to this direction.
2. Don’t Be Shy: Share Your Success and Innovation
Blogs, videos, and presentations are excellent ways to showcase the company’s expertise. Publishing case studies, internal solutions, or unique approaches to work demonstrates your technical prowess and inspires the wider community.
3. Leverage Open Source as a Reputation-Building Tool
Companies that contribute to open-source projects demonstrate technological leadership. Technologies like Docker, Kubernetes, and Spring gained global recognition because large companies weren’t afraid to share their tools with the world.
4. Technical Brands Don’t Grow Overnight
It is rather a journey than a destination, requiring consistent and ongoing efforts, from participating in local events to creating your own initiatives, such as internal meetups or online courses. While these investments demand resources, they pay off in the long run. Companies that invest in their technical brand today will reap significant benefits in the future.
Conclusion
Building a tech startup is a much bigger challenge than working for someone else from 9 AM to 5 PM. Your transition from pure tech expertise to managing your own business requires a total revision of your entire mindset. But your previous experience is very valuable: remember what you wanted your employer to be and try to build a company that will be a joy to work for. Don’t micromanage your employees or try to control every aspect of their work.
Instead, focus on building strong connections with them, investing in their growth, and fostering the innovations they can bring to life. These principles form the foundation of success for any tech company. If you not only read these suggestions but also put them into practice, you’ll find it easier to navigate the challenges of leadership and achieve real improvements in your company’s standing.
Have fun — and a lot of success!
