11 Challenges of Founder Life
Over the course of the semester in Founders Dilemmas, a class I am taking as part of my MBA program, founders were fired, CEOs replaced, marriages destroyed, employees laid off, and companies sued.
What did I learn?
Don’t be surprised. Be ready.
There is a list of things that are highly likely to happen and to improve the chances that you weather the storm (and your start-up survives), you should prepare for them. We conducted mock firing sessions in class and the experience was powerful.
In these tense situations we got ‘triggered’ and defaulted to base set of reactions (e.g. to become defensive, feeling uncomfortable). Practicing helped me realize where I was not being clear in my communication and how I could better “see through the eyes” of the person I was speaking to.
Here are a list of likely activities you will likely to perform as a founder CEO…
1. Be rejected
Whether its a hackathon or pitch competition you did not win, an incubator or accelerator you did not get into, a funder who denied you, or a person who said ‘I just don’t think that is going to work’. Rejection is the norm. Resilience and persistence is key.
2. Fire people close to you
As the organization shifts and grows, new skills will be needed and dynamics will change. People that were a good fit for a nimble 5 person team may not be the same people that are great at navigating a 10o+ person organization. As the founder you will be letting people go and be pulling in new people to support the business.
3. Not agree with a cofounder
So many challenges are going to arise and aspects of the business are going to change. Define who is the ultimate decision maker and what happens when team members don’t agree with the direction, including how to voice feelings and concerns.
4. Ask people for money
Even if your start-up is revenue generating you may need money to scale. Beyond pitch competitions you will be asking people for money, among the first of which will probably be friends and family.
5. Let go and trust others
As the organization grows you can’t know and do everything. Parts of the product development you were centrally involved in, may no longer be in your domain. Let go for others to make the call in predefined areas.
6. Change the organization structure and processes
The strategy will shift, you will change focus, and hopefully grow. During this time the structure may need to change to better perform the ‘job to be done’.
7. Deviate from the plan
Seasoned entrepreneurs prepare, but default to action. No matter how much you prepare, the plan will always change. Trying quickly, iterating, and adapting saves time and energy.
8. Negotiate compensation
You are going to negotiate with the board for your compensation and with others for their compensation.
9. Provide (and receive) tough feedback
When employees don’t perform or the organization is deviating from the plan, be prepared to give candid feedback early and often, and receive feedback from your team and board.
10. Disagree with your board
You may be doing a great job, growing a successful organization, and they still may want to fire you (and for good reason — maybe the organization needs a leader who is familiar with scaling). Be ready for disagreements and a plan to entice discussion and debate.
11. Leave your start-up
Whether you sell your company, get fired from your company, close your company, or run it until you can’t run it any more, you are going to leave at some point. Know your intended exit.
