Anti-burn: How bootstrapped Zoho survived two tech bubbles
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Re: Anti-burn: How bootstrapped Zoho survived two tech bubbles
#2Very inspiring story, thank you.
Re: Anti-burn: How bootstrapped Zoho survived two tech bubbles
#3> When everyone in the Valley was signing 10 year leases at $10 per square foot – a bubble indicator that we’re seeing again today – the company relocated to Pleasanton, where it remains today, and instead invested in keeping its headcount up.
> “We don’t really agree that a short-term, mercenary mindset and incentive structure is required to hire the best talent,” Vegesna says. “We issue cash bonuses at the end of a good period, whether it’s a month, quarter, or year. It actually ends up being a better outcome for most employees. And, of course, we have free lunch and all the other typical perks. We have had extremely low employee churn...”
Something not mentioned in the article: according to Wikipedia[1], 90% of Zoho's employees are based in India. While I'm sure that some in the Bay Area will scoff at this, I don't think there's any question that when the business cycle turns, the ridiculously high costs of employee salaries and office space will be the undoing of countless Bay Area startups.
It's nice to read stories every once in a while about companies living within their means. Ironically, they're usually the ones that could actually afford to live large if they wanted to.
Re: Anti-burn: How bootstrapped Zoho survived two tech bubbles
#4> When everyone in the Valley was signing 10 year leases at $10 per square foot – a bubble indicator that we’re seeing again today – the company relocated to Pleasanton, where it remains today, and instead invested in keeping its headcount up. > “We don’t really agree that a short-term, mercenary mindset and incentive structure is required to hire the best talent,” Vegesna says. “We issue cash bonuses at the end of a…
Zoho also hired and trained people who were usually out of normal companies radars' (like college dropouts).
Re: Anti-burn: How bootstrapped Zoho survived two tech bubbles
#5Zoho is often an inspiration for Indian startups. They might have grown out of the early days of startup grind and culture but it has continuously given inspiring environments for future founders like girish from Freshdesk.
this article is a reflection of its growth strategy and how longevity trumps over 'growth hacks'
Re: Anti-burn: How bootstrapped Zoho survived two tech bubbles
#6Spending within your means and growing organically certainly give me a good feeling. However, I don't think it's decision to base 90% of its employees in India maps too directly to the stereotypical SV startup. It looks more like a Indian company with an office in the US.
Re: Anti-burn: How bootstrapped Zoho survived two tech bubbles
#7> When everyone in the Valley was signing 10 year leases at $10 per square foot – a bubble indicator that we’re seeing again today – the company relocated to Pleasanton, where it remains today, and instead invested in keeping its headcount up. > “We don’t really agree that a short-term, mercenary mindset and incentive structure is required to hire the best talent,” Vegesna says. “We issue cash bonuses at the end of a…
Zoho also hired and trained people who were usually out of normal companies radars' (like college dropouts).
That's interesting to hear, for staff who had never held a position previously this would help foster the loyalty.
Re: Anti-burn: How bootstrapped Zoho survived two tech bubbles
#8... and produced some shitty software in the process.
Re: Anti-burn: How bootstrapped Zoho survived two tech bubbles
#9> When everyone in the Valley was signing 10 year leases at $10 per square foot – a bubble indicator that we’re seeing again today – the company relocated to Pleasanton, where it remains today, and instead invested in keeping its headcount up. > “We don’t really agree that a short-term, mercenary mindset and incentive structure is required to hire the best talent,” Vegesna says. “We issue cash bonuses at the end of a…
Zoho also hired and trained people who were usually out of normal companies radars' (like college dropouts).
Interview with the founder Sridhar Vembu, where he talks more about this: https://www.youtube.com/watch?v=Zt5EMnATY_Q
Re: Anti-burn: How bootstrapped Zoho survived two tech bubbles
#10Good story, sadly won't get crazily upvoted since Zoho keeps a low and stable profile.
Thanks