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The 5 Non-Negotiables for Starting a Services Business

Exactly how I'd build Surton again, from scratch

Hey!

Chris here. Welcome to Blueprint—the newsletter to help you build a winning engineering team.

I was recently asked: "If you had to start Surton from scratch today with everything you've learned, what would you do differently in the first six months?"

Honestly? There's not much I'd change.

But after 20+ years building companies, I've learned that you have to start somewhere. You can't build the perfect company from day one—you learn by doing.

But there are certain foundational decisions that, if you get them right early on, will save you from massive headaches down the road.

Let me walk you through the five critical decisions I'd make again in a heartbeat 👇

📒 DEEP DIVE

The 5 Non-Negotiables for Starting a Services Business

After 20+ years building companies, there's not much I'd change about starting Surton. But these five foundational startup decisions will save you from massive headaches down the road.

After 20+ years building companies, there's not much I'd change about starting Surton. But these five foundational startup decisions will save you from massive headaches down the road.

Starting a company is hard enough without shooting yourself in the foot with bad foundational decisions.

After reflecting on what's worked at Surton, here are the 5 things I'd absolutely do again—and why they're more critical than most founders realize.

1. Pick the Right Business Partner 

Your business partner needs 2 non-negotiable qualities: complete trust and exceptional skill.

Can you leave your kids with them for a weekend? If not, they shouldn't touch your company's financials either.

My current partner, Ben, balances my intense optimism with grounded realism. When I get carried away, he brings me back to earth. When he gets low, our conversations lift him up.

I've been fortunate in this area. Even with my first business partner, we did incredible things together. We complemented each other really well. The only reason that partnership ended was because we reached the limits of what our combined skill sets could accomplish.

Here's what I learned: when partners start grasping for straws about "who's going to do what," that creates unnecessary conflict. That experience taught me to be crystal clear about who I wanted to work with next.

I needed someone who understood my personality and skill set. I've got enough ego that I wouldn't want somebody fighting for that same position. 

Ben and I had worked together forever, so I already knew we'd be a good fit in that regard.

2. Get Financial Clarity From Dollar One

While VC startups chase product-market fit before revenue, I sleep better knowing exactly how money moves through the business.

From the first customer, I want clarity on what becomes profit, what covers expenses, and how we plan accordingly.

This is about peace of mind. 

I realize that VC-funded startups might start with an idea and figure out the financials later. But for me, knowing that dollar one that comes through the door will generate X amount of profit lets me sleep well at night.

This eliminates countless arguments and makes decisions straightforward. When you know your numbers cold, every business decision becomes clearer.

3. Time Your First Hires Strategically

Every founder faces this burning question: When do I bring on employee number one?

It's one of the hardest questions to answer because of the competing pressures. You need confidence that you can fulfill your financial commitment to them, but the longer you wait, the more you restrict your business growth.

The right approach is to build capacity gradually. Don't commit to a full-time position until you have a full-time workload.

Try to ramp up to that point naturally rather than being in a situation where you need to commit to a full-time employee when you don't have full-time work for them.

We were very cautious about this, and I'd recommend that approach to any founder.

4. Hire for Capability, Not Friendship

I've always been cautious about hiring friends.

There's a crucial difference between hiring someone you became friends with through professional respect versus bringing in your buddy from high school.

I have hired friends—but they're friends because we worked together and developed mutual respect for each other's abilities to do what the company needs. 

I have not hired any best buddies from high school or college. That's just a recipe for disaster in most circumstances.

It's okay to hire people you know because you're going to rely on trust in those initial relationships. Just make sure they're a really, really good fit for the role you're looking for.

Initial hires set the culture for everyone who follows. Get this wrong, and you'll pay for it repeatedly.

5. Stay Close to Your Customers

I've always gravitated toward businesses where I can directly face customers.

I'm most comfortable when I deeply understand their needs and can provide immediate value. I want to be close to the customer, understand what they're trying to accomplish, where we're a good fit, and where specifically I can add value.

This close connection keeps you honest and focused on what actually matters—not what you think matters.

For any services business, the founders should be in a position where they can add direct value to the customer and maintain that close touch. I think that's always important.

The One Thing I Might Change

If I'm being completely honest, there's one small thing I'd adjust: I'd be slightly more selective about some of those early accounts.

We took on a couple of personal hobbyists who were looking to start their own startups but didn't really have corporate backing. Those weren't the best fit. We did okay with some of them, but I probably would have been more choosy.

But here's the thing—I only know that because I worked with them. It's like those time travel movies where you're stuck in a loop. You kind of need to experience it and learn.

At the time, I really wanted to see behind the curtain of different kinds of businesses. I'd been in insurance technology for 20 years. The whole world started to look like that space, and honestly, it gets kind of depressing and small after a while.

Getting out and seeing all these other businesses making money in various ways opened my eyes to how many opportunities exist. That learning was incredibly valuable, even if some of those early clients weren't perfect fits.

🎙 EPISODE OF THE WEEK

This week on "Build Your Business," my brother Matt Reynolds tackles something most entrepreneurs get completely wrong: taking time off.

Matt breaks down why "always grinding" is actually dangerous for business owners and how intentional rest can sharpen your strategic thinking and boost creativity.

Whether it's a simple weekend away or a longer retreat, he offers practical steps for building time off into your business model without losing momentum.

Check it out: Spotify | Apple Podcasts | YouTube

BEFORE YOU GO…

Being a founder is hard. There will be days you stare at the ceiling, wondering if you can make payroll.

But get these five decisions right, and you give yourself the best possible shot at building something that lasts.

These foundational decisions—picking the right partner, understanding your financials, timing your hires, hiring for capability, and staying close to customers—will serve you well no matter what industry you're in.

They've served me well across multiple companies, and I'd bet they'll do the same for you.

Talk soon,

Chris.