Who you work with is even more important than who you hang out with because you spend a lot more time with your workmates than your friends.

Fix a few things here, improve a few things there, launch a new feature every so often. That's coasting. And I don't want Basecamp to coast.

I'm not sure a lot of companies know their story, or can explain why they exist and who they are, without just spewing just corporate speech.

When you can't see someone all day long, the only thing you have to evaluate is the work. A lot of the petty evaluation stats just melt away.

Customers don't just buy a product - they switch from something else. And customers don't just leave a product - they switch to something else

If an employee can demonstrate results produced in a way that the company didn't think possible, then a new way forward can begin to take shape.

What matters is: Are you profitable? Are you building something great? Are you taking care of your people? Are you treating your customers well?

As businesses grow, all sorts of things that once were done on the fly - including creating new products - have a way of becoming bureaucratized.

[Facebook and Twitter] aren't the real problems in the office. The real problems are what I like to call the M&Ms, the Managers and the Meetings.

When you write like everyone else and sound like everyone else and act like everyone else, you're saying, 'Our products are like everyone else's, too.'

We don't want to bank all our risk on a small collection of big companies. We don't want to lose 20 percent of our business if one big account goes away.

The reality is that companies are full of things that are left unspoken. And even when they are out in the open, the CEO is almost always the last to know.

I'd love to see more businesses take this approach - intentionally rightsizing themselves. Hit a number that feels good and say, 'Let's stick around here.'

The office during the day has become the last place people want to be when they really want to get work done. In fact, offices have become interruption factories.

We like to bully deadlines. Pick on them; make fun of them; even spit on them sometimes. But what a terrible thing to do. Deadlines are actually our best friends.

I think the story is important in every business. Why do you exist, why are you here, why is your product different, why should I pay attention, why should I care?

Most work is not coming up with The Next Big Thing. Rather, it's improving the thing you already thought of six months - or six years - ago. It's the work of work.

Practice quality, and you get better at quality. But quality takes time, so by working solely on quality, you end up losing something else that's important - speed.

Whenever I speak at a conference, I try to catch a few of the other presentations. I tend to stand in the back and listen, observe, and get a general sense of the room.

A large user base helps shield us from things we can't control. You can spend years catering to a major corporation, for example, only to see your contact there move on.

Nearly every boss has said it. And just about every employee has heard it. Yet it's one of the most meaningless lines ever spoken in the office: 'My door is always open.'

In my mind, declaring that an unfamiliar task will yield low-hanging fruit is almost always an admission that you have little insight about what you're setting out to do.

If you tell your story well, it can help attract customers; it can help people understand your business better, and you are more approachable as a business and a company.

You have to live with your decisions every day. Why live with one you're uneasy with? 'Because it'll make you money' is a common reply. But I don't think that's good enough.

I know plenty of entrepreneurs who are numbers first. They tend to be highly analytical people, and before they pull the trigger, all the numbers have to line up just right.

Being a salesperson prepares you for just about everything in business: how to listen, empathize, and persuade; when to back off and when to step in; and, of course, how to close.

Like many entrepreneurs, I started out in sales. I began at 14, when I got a job selling shoes and tennis rackets at a pro shop, and I've been selling one thing or another ever since.

When you're short on sleep, you're short on patience. You're ruder to people, less tolerant, less understanding. It's harder to relate and to pay attention for sustained periods of time.

If you could taste words, most corporate websites, brochures, and sales materials would remind you of stale, soggy rice cakes: nearly calorie free, devoid of nutrition, and completely unsatisfying.

I've run into a lot of companies that invent positions for great people just so they don't get away. But hiring people when you don't have real work for them is insulting to them and hurtful to you.

Meetings should be like salt - a spice sprinkled carefully to enhance a dish, not poured recklessly over every forkful. Too much salt destroys a dish. Too many meetings destroy morale and motivation.

"Simple" is a tricky word, it can mean a lot of things. To us, it just means clear. That doesn't always mean total reduction, or minimalism - sometimes, to make things clearer, you have to add a step.

Lots of business owners spend their lives trying to land the whale - the single, massive, brand-name account that will fatten the top line and bestow instant credibility. But big customers make me nervous.

Customers buy Basecamp without ever having to interact with us. If they do have a question, we handle everything via email. We've been in the business of automation. We've never really valued full service.

Meetings should be great - they're opportunities for a group of people sitting together around a table to directly communicate. That should be a good thing. And it is, but only if treated as a rare delicacy.

Your employees have lots of opinions about everything - your strategy and vision; the state of the competition; the quality of your products; the vibe in the workplace. There are tons of things you can learn from them.

Whenever you need something from someone else before you can move forward, it's a dependency. We believe dependencies slow people down. We want people to be more independent, because that will keep them moving forward.

These two staples of work life - meetings and managers - are actually the greatest causes of work not getting done at the office. In fact, the further away you are from both meetings and managers, the more work gets done.

Give your employees a shot at showing the company a new way, and provide the room for them to chalk up a few small victories. Once they've proved that their idea can work on a limited basis, they can begin to scale it up.

I used to think that deadlines should be ignored until the product was ready: that they were a nuisance, a hurdle in front of quality, a forced measure to get something out the door for the good of the schedule, not the customer.

Many of the things we do at Basecamp would be considered unusual at most companies: paying for employees' hobbies, allowing our team to work from anywhere, even footing the bill for fresh fruits and veggies in our staff members' homes.

As the number of people who work at Basecamp has grown, I've noticed places where we could use more features, like management, structure, and guidelines. I've also noticed places where we've overengineered ourselves and should pull back.

I'm a designer, but I rely on programmers to bring my ideas to life. By learning to code myself, I think I can make things easier for all of us. Similarly, I want to be able to build things on my own without having to bother a programmer.

The owner of a company with supertight margins - say, a restaurant, retailer, or producer of commodity goods - would be a fool not to keep a close eye on the numbers. But when I make big decisions, numbers are seldom, if ever, the tiebreaker.

We've never much liked the idea of charging a participation tax, a phrase we coined to represent what it feels like when a software company charges you more money for each additional user. Participation taxes discourage usage across a company.

You cannot ask somebody to be creative in 15 minutes and really think about a problem. You might have a quick idea, but to be in deep thought about a problem and really consider a problem carefully, you need long stretches of uninterrupted time.

I've seen small businesses turn into terrible midsize or big ones because they let their desire to achieve some arbitrary metric get the best of them. Whatever is compromised as a result doesn't matter anymore, as long as the company is growing.

If yesterday was a good day's work, chances are you'll stay on a roll. And if you can stay on a roll, everything else will probably take care of itself - including not working from the moment you get up in the morning until you nod off to sleep.

A lot of people relate leadership to formalities. They believe that leadership is about being professional and strong and always right and being a booming voice. I just don't buy that. I think that leadership is a soft skill; it's a people skill.

I casually advise a few young companies, and I'm always surprised when I see them overthinking simple problems, adding too much structure too early, and trying to get formal too soon. Start-ups should embrace their scrappiness, not rush to toss it aside.

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