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Tracy Young on Scaling PlanGrid to 400+ People with YC Partner Kat Manalac
34 segments available
Tracy Young is a cofounder and the CEO of PlanGrid. PlanGrid makes mobile construction productivity software. They were acquired by Autodesk in 2018 and were part of YC’s Winter 2012 batch. https://twitter.com/Tracy_Young https://www.plangrid.com/ Kat Manalac is a Partner at YC. https://twitter.com/KatManalac The YC Podcast is hosted by Craig Cannon. https://twitter.com/craigcannon Y Combinator invests a small amount of money ($150k) in a large number of startups (recently 200), twice a year. Learn more about YC and apply for funding here: https://www.ycombinator.com/apply/ *** Topics 00:15 - How Tracy got into the construction industry 2:20 - What convinced Tracy and her cofounders to build PlanGrid? 3:00 - Finding a technical cofounder 5:55 - Tracy still sees herself as an engineer 6:45 - PlanGrid's MVP and their first customers 11:25 - Their sales process 13:15 - Product breakthroughs 16:50 - Not firing fast enough 20:00 - What does she look for when hiring someone? 25:30 - Tim Cook's closing statement at WWDC 28:15 - Fredi Fernández asks - Does Tracy track wellness levels of the team? 28:55 - At what point did Tracy hire an office manager? 29:50 - How does Tracy take care of herself? 31:15 - Founding a company with a partner 33:00 - Managing a company as a new parent 35:15 - Seyed Rasoul Jabari asks - What's your big plan to go from 1.5 to 10 million projects? 36:15 - Holly asks - What has been your single largest influence in helping you scale? 37:35 - Why do some executives not work out? 38:25 - What skills did Tracy have to work on when scaling? 42:10 - What do a lot of startups get wrong? 45:50 - Tracy's recommended books 47:30 - What Tracy wishes she knew when she started out
Segments Timeline
From Architect Dreams to Construction Reality
Tracy Young shares her journey into the construction industry, revealing her initial aspiration to become an architect and how not being accepted into architectural programs led her to a fulfilling career in construction engineering. She discusses her early experiences on job sites and how they inspired the creation of PlanGrid.
"oh you know I wanted to be an architect and I wasn't accepted into any architectural programs which ended up being a really good thing for me um I love buildings spaces have a way of just making us fe..."
The Birth of PlanGrid
Tracy recounts the early brainstorming sessions with her co-founder Ryan Sutton, highlighting the playful yet serious exploration of various startup ideas before settling on PlanGrid. She emphasizes the importance of their shared background in construction engineering and software development.
"okay this is the thing that I'm gonna commit to building we just started off as a fun project plan grid at least for me I had no idea that we could build a business out of it and certainly not one tha..."
Finding the Right Technical Co-founder
Tracy discusses the challenges of finding a technical co-founder for PlanGrid, sharing a humorous anecdote about how her boyfriend, Ralph, became involved in the project. She highlights the importance of having a strong technical partner to bring their vision to life.
"you wanted to build something with long term we were all friends we liked hanging out with each other we'd both you know some of us had worked together two of us were dating now married with a kid thr..."
Seeing Herself as an Engineer
Despite her role as CEO, Tracy reflects on her identity as an engineer and builder. She discusses how this perspective influenced her approach to product development and the early success of PlanGrid, which began as a fun project before evolving into a viable business.
"really good idea would be super helpful and we would go through this period of what Ryan calls the saddest story in Silicon Valley which is we have an idea and we have no technical you know co-founder..."
Understanding User Needs
Tracy explains how PlanGrid's early success was driven by a deep understanding of their users in the construction industry. She emphasizes the importance of simplicity in design and how they tailored their software to meet the needs of users who were not traditionally tech-savvy.
"builder so I was something I like doing yeah because that you mentioned it earlier but like the product started selling itself right yes I mean we worked at it right we we actually had to tell the sto..."
Overcoming Adoption Barriers
Tracy discusses the challenges of getting construction professionals to adopt digital tools. She shares how PlanGrid addressed these barriers by providing iPads to users and offering hands-on support to ensure successful implementation of their software on job sites.
"coming off and what does the product actually look like at that point because I we have so many people that come on the podcast and oftentimes they've liked it they're like you like they have maybe a ..."
The Bottom-Up Approach to Sales
Tracy describes PlanGrid's unique sales strategy, which focused on engaging users directly in the field rather than traditional top-down sales methods. She explains how this approach allowed them to connect with the real needs of construction workers and drive adoption.
"run your business and so not only do we have to educate them on the devices especially in 2012 2013 we had to educate them on you know everything else that goes with it and so I think YC has this mott..."
Bottom-Up Sales Strategy
In this segment, Tracy shares insights into PlanGrid's sales strategy, emphasizing their unique approach of targeting field workers rather than traditional enterprise buyers. She explains how this bottom-up method allowed them to penetrate the construction industry effectively, where most software had previously been sold to office-based decision-makers.
"many of these other soft for products like github go with this bottoms-up method did you ever entertain that idea or was it always like we need to get this Foreman or whatever I don't know if the hier..."
Designing for All Users
Tracy elaborates on how PlanGrid was designed to be valuable for all roles within the construction industry, from project executives to electricians. She discusses the importance of creating a single product that meets diverse needs without customization, maximizing its potential market reach.
"wouldn't wouldn't be like customized versions free free you know there's different profiles it would be one product that would satisfy all the profiles as well as one product that would be valuable fo..."
Key Product Breakthroughs
Tracy highlights significant product breakthroughs that contributed to PlanGrid's growth, including features like overlaying sheets and full sheet search capabilities. These innovations allowed users to access critical information efficiently, addressing common pain points in the construction process.
"features inside plan grid um sometimes you want to look at your equipment drawings you know just different equipments in the room and then you also want to look at the electrical drawings just to make..."
Revolutionizing Construction Documentation
In this segment, Tracy discusses how PlanGrid revolutionized construction documentation with features like version control and the ability to search for specific terms within drawings. She emphasizes the impact of these features on reducing waste and improving efficiency in the construction industry.
"was in the construction industry and so this is this abuse 'full for someone like doing inventory and like ordering just looking up information and yeah figuring out how to build it planning ordering ..."
Lessons from Y Combinator
Tracy reflects on her time at Y Combinator, sharing valuable lessons learned from mentors about the importance of timely personnel decisions. She discusses the consequences of not firing underperforming employees quickly and how it can affect team dynamics and overall company performance.
"tear it down and rebuild yeah yeah wow that's well yeah so thinking back to your time at YC is there any specific advice you've got from any of the partners or anything you learned during that time th..."
Hiring for Startup Success
Tracy outlines the key traits she looks for when hiring at PlanGrid, particularly in the early stages. She emphasizes the need for high pain tolerance and versatility among team members, as well as the importance of authenticity in leadership as the company scales.
"this day feel this like it still hurts me at a deep level that I fired someone and it was a complete surprise to them right awful so I would say the moment that we figure out someone isn't working out..."
The Shift to Specialization
As PlanGrid grew beyond 50 employees, Tracy Young explains the necessity of specialization in roles. She highlights the importance of delineating responsibilities to avoid chaos and ensure clarity in the team's work, especially as the company scales.
"early on woman let's say we were sub 50 people what we were looking for were people who had high pain tolerance --is and people who could be generalists because we had to there's just too much work to..."
Authenticity in Leadership
Tracy shares her insights on the qualities she seeks in leaders during the hiring process. She stresses the importance of authenticity and the ability to demonstrate past success, noting that genuine candidates are more likely to contribute positively to the company culture.
"working on you want to just in delineate work and you know segment it out that way the other thing I look for as as so later stage and later stage startup you know I'm counting as I'm drawing the line..."
The Importance of Positive Attitude
In this segment, Tracy discusses the significance of hiring individuals with a positive attitude. She reflects on how a positive mindset can influence the work environment and the overall morale of the team, especially in a startup setting.
"clear metric that's a great one but like authentic pain tolerance I mean generalist well it's harder to judge and it's more easily it's more easy for bias to slip in right swimmers like oh you know ca..."
Finding the Right Fit
Tracy recounts her early hiring experiences at PlanGrid, emphasizing the challenges of attracting talent in the startup phase. She shares a unique approach her co-founder used to evaluate potential hires based on personal compatibility.
"have that luxury early on okay to try to filter people that way um Ryan might my co-founders Tess was like I mean if we didn't did have the luxury of having an option to like great candidates I think ..."
Navigating Team Dynamics
Tracy reflects on the dynamics of team interactions and the importance of hiring individuals who can handle rejection and maintain a positive outlook. She shares anecdotes about candidates who demonstrated resilience and a constructive attitude.
"of it you know passionately write a psalm on was a literally a door-to-door pencils salesmen Wow we're like staples or something in America no no these are modern tunes yeah yeah in modern times this ..."
Work-Life Balance in Startups
Tracy discusses the challenges of maintaining work-life balance in a fast-paced startup environment. She shares her perspective on the importance of recognizing hard work while also addressing the need for sustainable practices.
"really nice actually yeah especially when they're you know doing just as much work as everyone I'd much you know who who wants to be around negative people let's face it no one but the negative people..."
Acknowledging Team Efforts
In this segment, Tracy comments on the backlash Tim Cook received for his remarks at WWDC regarding work-life balance. She emphasizes the importance of acknowledging team efforts and the complexities of managing expectations in a high-pressure environment.
"rolling out important products I feel like it's just what gets elevated right I'm sure people at Apple his teammates actually appreciated that he took the time out to thank them because they probably ..."
Tracking Team Wellness
Tracy addresses a question about how she tracks the wellness levels of her team. She explains the role of office managers and HR in supporting team well-being and shares her personal journey towards maintaining a healthy lifestyle.
"and so I guess that's my thoughts there certainly like especially now I mean we have so many it's funny because you know when when we were like in our mid-20s early plan grid that seems like the only ..."
Transitioning Responsibilities
Tracy reflects on the transition of responsibilities as PlanGrid grew. She discusses the blurred lines of accountability and when she began to rely on dedicated team members to manage employee wellness and office dynamics.
"you I don't think we do um you know we are office managers and facilities manager they they and our HR team they do a really good job of like taking care of the team I remember I do remember a funny s..."
Self-Care Strategies
In this segment, Tracy shares her personal self-care strategies as PlanGrid expanded. She discusses the importance of yoga, meditation, and maintaining a healthy diet to manage stress and promote well-being.
"point did a transition away from your response that you're your direct responsibility I don't know it's such a blur and a days you know like seven eight years that plan grid going from five cofounders..."
The Co-Founder Relationship
Tracy reflects on her partnership with her co-founder, Ralph, and the complexities of maintaining a personal and professional relationship. She emphasizes the importance of mutual support and how their partnership has shaped the success of PlanGrid.
"and bigger other than eating very healthily what were the things I started doing um I started doing yoga weekly that was really helpful as part of that I also meditate that was really important it was..."
Navigating Parenthood and Entrepreneurship
Tracy opens up about the challenges of being a new parent while managing a growing company. She shares her experiences of balancing the demands of motherhood with leading PlanGrid, emphasizing that it is possible to succeed in both realms.
"relationship with a co-founder I'm very very lucky to have a partner like Ralph this company would not be what it is today and I certainly wouldn't be the human I am today without Ralph in my life and..."
Scaling Challenges and Strategies
In response to a question about scaling from 1.5 million to 10 million projects, Tracy discusses the importance of international expansion and the strategies PlanGrid is implementing to reach global markets. She emphasizes the need for a strong international team and product adaptation.
"that process like when you're managing this giant giving giving birth yeah but we'll you talked about like fundraising all this stuff last year so my baby is gonna be a year-old next week um last year..."
Finding the Right Leadership
Tracy discusses her journey as a first-time CEO and the importance of surrounding herself with experienced leaders. She shares insights on how she attracted top talent to PlanGrid and the challenges of hiring executives who may not fit the startup environment.
"like I don't know if this is good advice what I do want I do want people know that it's possible you just find a way to do it yeah I remember at some point last year like during all this Ralph please ..."
The Emotional Toll of Leadership
Tracy reflects on the emotional challenges of leading a startup, including the loneliness and pressure that come with the role. She emphasizes the importance of managing emotions and maintaining confidence in the face of adversity.
"figured it out and now we're bringing plan grid to them okay cool another scaling question Holly asks what has been your single largest influence in helping you scale yeah how do you make it happen so..."
Passion as a Driving Force
Tracy discusses how her passion for helping customers in the construction industry has been a guiding force for PlanGrid. She highlights the importance of understanding customer needs and staying committed to solving their problems as key to the company's success.
"them to work with and call their colleague I think that helps how often do you did you meet an executive that sorry we just had a hiring conference last week and I'm just like thinking about um how di..."
Common Pitfalls for Startups
As Tracy reflects on her experiences, she identifies common mistakes that many startups make. She emphasizes the need for founders to truly understand their customers and the importance of passion in driving a successful business.
"what's your reputation like hi strong no just like you've an intensity certainly Oh intense but yeah yeah it's like maybe it's like a duck though right you like there you're doing this under the water..."
Common Startup Pitfalls
Tracy shares her observations on common mistakes startups make, particularly around prioritization and self-honesty. She discusses how founders often get caught up in unproductive tasks instead of focusing on what truly drives the company forward. This segment provides valuable advice for entrepreneurs on maintaining clarity and direction.
"help yes so I think it boils down to passion yeah so now that you you've been doing plain bird for quite a while now when you think back to the early days and maybe your friends starting companies jus..."
Overcoming Negative Ego
Tracy opens up about her struggles with negative ego and self-doubt as a leader. She recounts her experiences before board meetings and how meditation has helped her clear mental clutter. This segment highlights the importance of self-awareness and mental health in leadership roles.
"you know when when things aren't going right or you know when things were going right and you know can we push ourselves harder no you know whatever the reasons is we just have to I think this is true..."
Recommended Reads for Growth
In this segment, Tracy shares her favorite books that have influenced her journey, including Melinda Gates' 'Moment of Lift.' She discusses the emotional impact of literature and how self-help and poetry have shaped her perspective. This offers listeners insights into the resources that can aid personal and professional development.
"completely crazy I remember I remember I would slike before every board meeting I would just have this thought that goes through my mind and I told you this cat where I thought I was gonna get fired f..."
Embracing Authenticity
Tracy reflects on her journey towards authenticity as a leader, sharing how she initially tried to conform to expectations in the construction industry. She emphasizes the happiness that comes from being true to oneself and the importance of self-acceptance. This segment serves as a powerful reminder for entrepreneurs to embrace their individuality.
"highly recommend that I read you know throughout the years I read a lot of self-help books actually like you know what is it Chicken Soup for the Soul but not actually that brand it's just like Zen Bu..."