How to scale Loyalty

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My NoSmalltalk session with Prateek Narang

by Albert Schiller

In the high-velocity world of tech startups, where "scale fast, break things" often dictates the rhythm, Prateek Narang of ColoredCow offers a distinctly counter-cultural beat. His approach to building a software company in the Indian hills prioritizes an often-overlooked metric: the profound return on investment that comes from unwavering loyalty and long-term commitment. While many chase rapid expansion, Prateek focuses on cultivating a "pure tribe," a community where shared values and a deliberate pace of growth yield an exceptionally low attrition rate – an asset he clearly values above the fleeting allure of hyper-scalability.

More Than a Paycheck: The Currency of Connection

ColoredCow's success in retaining talent, particularly talent cultivated from non-traditional backgrounds in the hills, isn't accidental. It’s a direct outcome of a philosophy that sees the company as more than just a workplace. "Our attrition rate probably would be the lowest in the industry," Prateek states, attributing this not just to skills training but because "we got people connected with the company... from day one." This connection is nurtured through tangible means: shared meals prepared in-house, often using produce from their own "ColoredCow Farms." This initiative, born from a collective desire for "eating good" and trusting their food source, evolved into a self-sustaining ecosystem. "When you do these kind of things," Prateek observes, "it's kind of tribal... you don't feel to go out that much. You're happy that you know within your circle."

This creation of a supportive, nourishing environment directly addresses a core human need for belonging and security, fostering a loyalty that transcends mere contractual obligation. It’s a stark contrast to the often transactional nature of employment in more conventional tech hubs.

The Deliberate Pace of Building People

The commitment to "hire for attitude and train for skill" is central to this low-attrition model. ColoredCow invests deeply in its people, often taking individuals with potential but without polished resumes and guiding them through a "learning curve." While Prateek acknowledges this makes for "slow hiring," it’s a deliberate choice. The company prefers to build its team and its capabilities organically, ensuring that growth doesn't come at the cost of its core values or the supportive culture it has painstakingly built.

This approach challenges the prevailing startup wisdom that often prioritizes speed and readily available "top 1%" talent. Prateek's experience has shown him that investing in the "other 99%" can yield extraordinary commitment and a workforce deeply aligned with the company's ethos. "If you have that much understanding, there's a learning curve, and here are the people you can trust," he notes, "Then the loyalty naturally happens." This isn't about accepting lower standards; it's about recognizing potential and committing to its development, even if it requires more time and a different kind of investment.

Beyond Numbers: The True Value of a "Tribe"

While Prateek is not averse to tangible business goals, like doubling revenue, he admits to hating the "pressure" that often comes with a singular focus on such metrics, especially as a bootstrapped company. "We don't need to answer anyone," he states, highlighting the freedom this gives ColoredCow to prioritize its unique approach. The "unspoken ROI" – the loyalty, the shared purpose, the incredibly low attrition, the well-being of his "tribe" – these are the metrics that seem to drive his long-term vision.

Prateek Narang’s ColoredCow serves as a powerful case study. It demonstrates that in the relentless pursuit of scale, the human element, genuine connection, shared values, and a commitment to mutual growth, can be the most potent, and ultimately most sustainable, driver of success. It’s a quiet assertion that sometimes, the most valuable assets a company possesses don't appear on a conventional balance sheet but are reflected in the steadfast commitment of its people.

5 Lessons with practical values-