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Here's what startups can learn from the Rolling Stones, according to University of Houston researchers

Hey startups, are you ready to rock and roll? Miguel Tovar/University of Houston

Editor's note: If you think you can't learn some business tips from a rock band, think again. The University of Houston's Big Idea has rounded up a few lessons to be learned from the Rolling Stones — along with advice from UH researchers.

"Start Me Up"

In 1970, the Rolling Stones' long-standing deal with Decca Records expired. This opened a giant door for the band, which I assume they painted black.

Because the band had achieved such success, they were able to form their own record label, dubbed Rolling Stones Records. This was done in an effort to exert more control over their music, not just creatively, but financially. The Stones could now retain the rights over their own music.

Much akin to this move, many startups are launched because entrepreneurs wish to have more control over certain aspects of their technology or product. When asked why he launched his own startup, James Briggs, Ph.D., professor of biochemistry at the University of Houston and president and CFO of Metabocentric Biotechnologies, explained, "Primarily, it was because we felt that development of the technology stood a much better chance if we prosecuted it rather than trying to find a licensing partner."

"Under Your Thumb"

It's no secret that one of the biggest perks of developing your own startup is that you get to be the one to take care of your baby; to oversee the development of your tech through all its stages. You and your co-founders make the decisions on the long road to achieving your vision. Similarly, Professor Briggs and his business partner John Weihua, Ph.D., chairman and CEO of Metabocentric, could now control their company and develop it according to their vision. Had Professor Briggs and Chairman Weihua gone with a licensing partner at such an early stage of their startup, it could have stymied their financial growth.

A licensing entity is not just costly, it handcuffs your startup to dealing with only one licensing partner: them. As a result, you can't generate revenue elsewhere, which you can do if you control your own company.

Much like the Stones' newfound ability to control their own music by not having the tentacles of Decca Records around it, Professor Briggs and Chairman Weihua now had that same ability with their tech; all because they chose to venture out on their own in the infancy of their startup. They were able launch their startup without licensing partners by acquiring non-dilutive funding, which grants startups money without seeking equity in return. So, again, you keep more control of your tech.

"Beast of Burden"

Big record companies have always made it a point to primarily sign acts that are already well established and have a strong fan base locally. Artists in the '60s had to really work hard to gain a big enough name for themselves in their region. Flyers, radio ads, playing weddings, bar mitzvahs, and birthday parties for free just to get your name out there, all the while having to create new material; musicians looking to get signed really had to put in the work.

Before they became household names, the Rolling Stones had garnered a big following in London in 1963. Big enough that the then-gigantic Decca Records noticed and decided to sign them. Record companies sign bands with big local followings because they are more likely to succeed on a grand scale, as opposed to artists who never ventured beyond their garage. In a sense, this was a way for big record companies to reduce the risk of signing an artist that turns out to be a dud.

"Beast of Burden (Remix)"

"Pharmaceutical companies, now, look to small biotech startups to de-risk the lead and approach before they consider partnerships or acquisitions," proclaimed Professor Briggs during his presentation at UH's Startup Pains event. "Pharmaceutical companies don't want to buy failure, they want to buy the success. So they make sure to look for small biotech companies who bring their tech to a point where it is de-risked enough that a partnership suddenly becomes less of a risk to undertake."

Biotech entrepreneurs have to also put in a lot of work to position their startups for potential deals and partnerships with giant pharmaceutical companies. Laying the groundwork for a startup includes searching for investors, virtually begging for money, entering competitions, updating your tech, growing your team, commercializing your product, and staying relevant. "It's a lot of hard work. There will be successes and there will be failures. But in the end, if you stay true to yourselves and your company, there's a greater chance it will pay off."

"Let's Spend the Night Together"

Chemistry, the non-science-y kind, is one of the most overlooked aspects of startups for entrepreneurs. The chemistry a team of individuals have with each other makes for a positive company culture that maintains high morale.

In music, nothing is more important than chemistry. You are whole rather than the sum of a band's parts. Mick Jagger met Keith Richards when they were 16 and became friends because they owned the same Muddy Waters record. Since that time, they have remained best friends. In the studio and on stage, few duos have portrayed the same level of camaraderie and chemistry as Mick and Keith. They met their drummer Charlie Watts at 17, just a year later, and bassist Ronnie Wood in 1975, and lo and behold, they're still all together today.

With a catalog of over 500 songs over 50 years, with the same four band members for the majority of that time, you'll be hard-pressed to find a better paragon of chemistry than the Rolling Stones.

For startups, a strong company culture composed of like-minded individuals working together with chemistry is a prime way to keep your employees motivated, especially when your company is so young, you cannot pay them very much. "You have to remember that most startups are extremely tiny, with 2 to 3 people even, so chemistry is vital. You want to have a culture where you can air your grievances with each other and be honest about your company," Professor Briggs said during the Q & A session of Startup Pains.

"Time Is On Your Side"

A good startup sees its employees working together, functioning as a well-oiled machine, spending long nights together figuring out problems, taking turns ordering Chinese for late meetings, checking each other's work, and learning each other's personalities to more effectively communicate. It takes time. But if the chemistry isn't there naturally, it'll be there once you put in the time to iron out each other's wrinkles.

Investors want to see that your startup has a positive culture before they invest. Similarly, funding entities view company culture as a component that impacts a startup's net profits. If your startup is in disarray, do you really think an intelligent investor is going to want to give you millions of their dollars?

"Even if your tech is great, investors need to see that the company behind the tech is worth the risk."


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This article originally appeared on the University of Houston's The Big Idea.

Rene Cantu is the writer and editor at UH Division of Research.

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Building Houston

 
 

By building a pipeline of eager, talented employees, and embedding institutional knowledge in your organization, you can reduce the burden of extra work on remaining employees and reinvigorate your business. Photo via Getty Images

Short-term talent shortages can feel overwhelming, especially if your company is navigating staff shortages, while also planning for future growth.

While internship programs can get a bad rap, there are many benefits to providing opportunities for early career professionals in any organization. By building a pipeline of eager, talented employees, and embedding institutional knowledge in your organization, you can reduce the burden of extra work on remaining employees and reinvigorate your business.

Get more engagement and develop champions at your company by incorporating three vital ingredients into your internship program strategy:

  1. Hire based on core values & interns’ ability to thrive at your company
  2. Invest in training
  3. Provide meaningful work

Build a strong team: hire based on ability to thrive 

To ensure your organization’s growth is coming from a diverse talent pool, build a hiring process around employees' future ability and core values, instead of what they have done in the past. Oftentimes, you’ll find that an intern’s coachability, willingness to learn and growth mindset are better determining factors towards future success than past experience.

During the recruitment and hiring process, ask your interns questions to probe values, interests, and passions. To determine if they have a growth mindset, you can ask, “What do you read in your time off to stay up to date with the latest trends in the industry? What did you learn yesterday?” or “Tell me about a time you received feedback. What did you do with this?”

Make sure that each intern that comes on board feels like a part of the team. Let them immerse themselves into your company’s culture, work environment, and industry by inviting them to your employee team-building activities, monthly company-wide conference calls, and other events that provide them with more context about your culture. Schedule weekly touchpoints with each intern to regularly check in on goals, their progress on tasks, and overall concerns. Not only will these meetings strengthen trust, but they will also position interns to succeed at your company.

Build resilience: invest in training

When you invest in a thoughtful, effective training experience, your interns will be more committed to the role because they’ll see the added effort you’re making towards their career.

Consider how your current training is structured and implemented so that your internship training experience is up to speed with the expectations of Gen-Z. Explore out-of-the-box training options, including coaching, virtual learning, and assessments that they will actually use.

In addition to the hard skills that are essential to supporting any company, ensure that you are training interns on core competencies. The National Association of Colleges and Employers identifies eight core competencies that are vital to career readiness: career & self-development, communication, critical thinking, equity & inclusion, leadership, professionalism, teamwork, and technology. When you teach interns these core competencies as soon as they join your organization, you will see an immediate boost in productivity, and you can objectively assess for future full-time employment.

Build momentum: provide meaningful work

After you’ve clearly mapped out your internship training experience, clearly outline projects from each of your company’s departments before you onboard interns. By planning ahead, and having a running list of projects that don’t require much explanation, you can give your interns a sense of purpose as soon as they join, which in turn will prevent bored interns from disengaging.

Ask interns what their goals are for their internship so you can not only help them make those goals a reality, but also tie their goals back to your company’s overall goals. As you offer meaningful enrichment opportunities, you will land top talent through your internship programs, and word will spread to bring in better talent for future internships.

Come out on top with a strong team

Businesses that take advantage of bringing on interns during a talent shortage can come out of hard times better prepared for the future. Once you have a strong and sustainable internship program, it will only grow and gain momentum.

Weather any storm that’s ahead by continuing to attract the best talent. Your company deserves it.

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Allie Danziger is the co-founder of Ampersand, an online training platform for businesses and professionals looking to level up their talent.

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