So how do you build a profitable business?
You start with ‘that’ great technology idea, but what changes do you need to make in the due course of time?
Is it okay to give up the ‘CEO’ role and hire a business guy to run your business?
Here are some interesting tips from Dogster & Catster founders:
- If being a business person is not your goal find a business partner immediately.
- Spend at least 50% of your time selling.
- Fail fast.
- Hire slow and fire fast.
- Don’t lie to yourself (stop those rosy forecasts!)
- Consult anyone you know that has run a earnings-based business (get some cash flow/long term strategies etc)
- Spend your money when it’s in the bank, not when the deal is agreed to!
- Prove your revenue models before investing in them.
- Be frugal about everything (learn some money saving tips here)
Interesting points – makes me wonder if Google would have been the same story if not for Larry/Sergey bringing in Eric Schmidt (goes to point # 1)?
What’s your take?
I think professional CEO should be brought in when the product and business model has been proven and the organization needs focus and superior execution to scale faster than competitors.
Good post about basic but important things.
I think Larry/Sergey just got lucky…
If we were to put them in Stanford dorm again with no (or little) savings, Whats the probability that they’ll create something as valuable as Google?
I would say highly unlikely.
I think , luck favours everything…but not with something like Google story or similar legends……
It is beyond luck.. take example of Abhinav Bindra he shot last shot to closest much larger than apponent…..and I believe that was not a luck as He used to prepare himself 7 hrs a Day…..
Determination ,hardwork ,focus outcomes are not depend on luck
Good post Ashish. I think that pro CEOs should be got as soon as possible. You have to be really choosy and make sure that they’re not learning on your time. Having a pro from the get go will give you the benefit of their failures and lessons. Moreover, a networked, experienced and respected frontperson will get you cash faster and save you time in the long run. And …there is always an element of luck don’t you think?
I think it depends…an entrepreneur must always be open to hand over the baton to a pro but only if thats the best for business…
if there are examples of founders handing over charge, there are examples of them coming back also
Why Jerry Yang came back and now gone again?
This question doesn’t arise for early stage startups…only once the biz model is proven and you have institutional capital
Absolutely….
Bringing a professional CEO early generally leads to conflict with founder and early employees about the direction of the product/business. Often its difficult for founders to pass on the control to an outsider who has a different product/business vision.
Things become more structured once product and business model is proven. One needs focus and execution capabilities to scale and build the company. From investor standpoint, at that stage its easier to replace founder,etc incase of severe conflict.