Build Your Team Around Shared Values: Interview with Nenad Milanovic, CEO of COING

I recently went one on one with Nenad Milanovic, CEO of COING.

Adam: Thanks again for taking the time to share your advice. First things first, though, I am sure readers would love to learn more about you. How did you get here? What experiences, failures, setbacks, or challenges have been most instrumental to your growth?

Nenad: My entrepreneurial origin story actually goes back to 2009. I knew I wanted to build products, but to be able to support my dream, I had to take things slow. So, first, I started a software consulting business. Long story short, things were far from smooth sailing for almost a decade. For years, my team and I were caught up in making other people’s dreams possible through consulting.But since we never gave up on the idea of becoming a fully-fledged product-based company, we ventured into developing a couple of products (and failed several times) before we finally went into orbit with Clockify. Still, although Clockify has been a huge success from day one, the fact that we had to power through a bunch of trials and errors up to 2017 led us to continue to take things slow. We knew we had to ensure a stable cash flow first and only then switch from consulting to a product-based software company. After several products had turned out not viable enough, I knew we had to approach things with caution. Going blindly after our ideas was never going to cut it. Taking our time turned out to be the best business decision we could make. We gradually switched from consultancy to a product-based company that reached unicorn status in 2021 — all because we never underestimated the power of financial independence. 

Adam: How did you come up with your business ideas? What advice do you have for others on how to come up with great ideas?

Nenad: Before we brought Clockify to life, we actually plunged into developing eight products that were total flops. And even Clockify was not a groundbreaking idea per se. There were dozens of time trackers readily available on the market at the time. So, when my team first approached me with this idea to build a time-tracking app, I instantly brushed it off. But, after the time tracking app we were using at the time upped its price five times, we decided to build our own time tracker that we could use instead. The odds were in our favor — we already knew what the app we had been using for so long was missing, so we just needed to make sure our tool filled the void we spotted. Still, we didn’t even think about launching the tool at the time. That decision came on later when we spotted the value it brings. Based on my experience, I’d always try to avoid wasting time and energy trying to come up with a revolutionary idea that could potentially radically transform the lives of billions of people. And don’t get me wrong, I’m not against innovation. But the odds of generating an idea that could help secure your place in history are painfully low. Instead, take a long hard look at what’s out there first. Then, try to find the gap worth bridging and build your way up from there. Maybe you won’t come up with a groundbreaking idea, but it’ll be the one worth chasing for sure. 

Adam: How did you know your business ideas were worth pursuing? What advice do you have on how to best test a business idea?

Nenad: Although our first business idea has turned into a success story spontaneously, it could not have reached its full potential if it wasn’t for careful analysis of the market trends before we put it into motion. So, sincerely enjoying what you do comes first, but close market analysis comes right after — especially if you want to evolve your business. Watching market trends also keeps you on your toes and helps you spot indicators that your idea is doomed to fail. Do your research first and only then try to convert your ideas into reality. Falling head over heels for an idea might prove useful in case you develop a revolutionary product that ultimately makes you ridiculously successful. But, most of the time, blindly following your hunch will not get you anywhere. So, I’d always advise staying on the safe side. 

Adam: What are the key steps you have taken to grow your businesses? What advice do you have for others on how to take their businesses to the next level?

Nenad: Even before we became cash flow positive and finally shifted to a product-based business, we practiced financial discipline. We went for years refraining from excessive spending and took things slow with expanding our team. This way, we avoided having to turn to external sources of finance, and I could make all the key decisions without a third party affecting my choices. I’m well aware that retaining financial independence is not always possible. This is especially tricky in times of crisis. But turning to third parties for funding also means that there’ll be one more stakeholder involved in your decision-making process. And that is the part where you put your company’s growth at risk too. Being customer-oriented from day one has also been one of the keys to our growth. Paying close attention to your customers’ feedback helps you discover where you stand each moment. Try listening to your customers because they usually give you first-hand info on what you should be doing to ensure your product matches their needs perfectly. 

Adam: What are your best sales and marketing tips?

Nenad: It might sound cliche, but I’ll say it anyway — basing your sales and/or marketing strategy on transparency can take you a long way. That’s what worked for us. Before we even considered developing our SEO strategy, we managed to rank first in search results not only because we gave access to our core functionalities free of charge but also because we were always upfront about pricing. If you decide to use the free version, you don’t have to bother about hidden costs lurking around the corner — there just aren’t any. The same goes for sales. When you foster transparency, your customers know what to expect from you, and in turn, they know they can trust you. Your products speak for themselves, and you might even never have to do unsolicited outreach (which sounds great if you’re not big on it to the extent I’m not). 

Adam: In your experience, what are the defining qualities of an effective leader? How can leaders and aspiring leaders take their leadership skills to the next level?

Nenad: Over the years, I’ve come to realize that there’s no universally true definition of effective leadership. But, leaders who base their leadership style on their teams’ fundamental needs are the ones that make headway. As a person in charge of a team, you need to make a conscious decision to put your ego aside and actively listen to your employees. You have to make an effort to tap into your team’s overall motivation, figure out what drives them forward and how you can fit into that picture. Only then can you project what your team truly needs (be that empathy, monetary rewards, or recognition) and grow as a leader. 

Adam: What is your best advice on building, leading, and managing teams?

Nenad: Hire for cultural fit. This doesn’t mean you should overlook qualifications, of course. But, when you build your team around shared values, you set them up for success with little to no need for your intervention. At least, that’s what we do to ensure the right people are in the right seats. We try to figure out if our prospective candidates share our core values right from the start. If they are self-motivated to the extent that they can work independently, we’re already heading somewhere. Then, after we hire the right people, the whole idea behind the expectation to work independently comes to the surface. We grant our employees autonomy, trust their skills and knowledge, and focus on the outcomes only. 

Adam: What are your three best tips applicable to entrepreneurs, executives, and civic leaders?

Nenad: Knowing that it’s okay to quit is a powerful engine. Use it to your advantage. Let go of the ideas that aren’t working, move on and try something different. There’s no shame in giving up on a vision that turned out to be a miss — you’ll just save yourself time and energy. Give your employees autonomy — they might just surprise you. When you take a more hands-off approach and delegate the decision-making to your team, you see a great deal of innovation when you least expect it. Explain your vision and give your team the authority to put it into action. Adapt your leadership style to your team. Not every team needs an empathetic or a pacesetting leader to thrive. You can’t lead without empathy, but adopting a certain management style just for the sake of following a trend isn’t what’s going to speed up your team’s growth. Your team’s needs trump all the trends.

Adam: What is the single best piece of advice you have ever received?

Nenad: Make every effort to keep your financial independence. 

Many people have told me this multiple times, so I couldn’t exactly give credit to one person for this advice, but it turned out to be the one that fitted my business vision best. We tried not to resort to external sources for financial support from day one. Sometimes this meant there was no one to turn to when things got rough. But self-funding our dream also meant that every milestone we reached was one hundred percent on us.


Adam Mendler is an entrepreneur, writer, speaker, educator, and nationally-recognized authority on leadership. Adam is the creator and host of the business and leadership podcast Thirty Minute Mentors, where he goes one on one with America's most successful people - Fortune 500 CEOs, founders of household name companies, Hall of Fame and Olympic gold medal-winning athletes, political and military leaders - for intimate half-hour conversations each week. A top leadership speaker, Adam draws upon his insights building and leading businesses and interviewing hundreds of America's top leaders as a top keynote speaker to businesses, universities, and non-profit organizations. Adam has written extensively on leadership and related topics, having authored over 70 articles published in major media outlets including Forbes, Inc. and HuffPost, and has conducted more than 500 one on one interviews with America’s top leaders through his collective media projects. Adam teaches graduate-level courses on leadership at UCLA and is an advisor to numerous companies and leaders. A Los Angeles native, Adam is a lifelong Angels fan and an avid backgammon player.

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