'); } -->
Let me ask you something: If your phone rang today and you discovered that your distant Aunt Sadie had passed away and left you her enormous fortune, would you open up an online trading account and start buying and selling stocks with your inheritance?
I didn't think so. Neither would I. We'd find an expert money manager we trusted to help us maintain and grow our newfound and valuable assets, right?
It is with this in mind that I find it puzzling that the vast majority of tech entrepreneurs who come up with brilliant ideas, start companies and then decide after getting them off the ground that they're the best candidate to run and scale those businesses.
Granted, this is a generalization, but most of the great techies whom I've met in my career have strikingly similar backgrounds: great engineering talent, insatiable curiosity and an incredible appetite and passion for all types of technologies.
Unfortunately, none of these characteristics is at the top of the list when it comes to building an organization, understanding a P&L, raising capital or dealing with the never-ending human-resource issues associated with a rapidly growing startup. Nevertheless, the vast majority of tech-startup founders I've encountered believe that they are best suited to run their businesses, well after their passion gets them through the first year or two, the first dozen or so hires and first few customers.
It's well documented that less than 25 percent of founders of tech startups are still running their businesses after two years. Why? The same reason that I never pitched for the Yankees: Despite my burning desire, I didn't have the skill sets. Why do most of them cling to running their startups? Probably for the same reason we cringe when we give the keys to the shiny new car to the 16-year-old valet - we know he's not going to take care of it the way we would.
By no means am I saying that techies shouldn't start companies. On the contrary, their vision and tolerance of risk is the reason that our country continues to be the world leader in innovation. They're willing to take huge risks to pursue dreams that only they can see, and most of the time they're also the ideal people to lead their companies for the first year or two.
Why? Because only they can fulfill the most glaring needs of startups. They need to passionately articulate their vision in order to (1) woo highly talented people to join them, (2) get the first customers to buy the product, and (3) persuade investors to give them capital. Nobody but a founder could do that.
But somewhere around the time that a company passes its employee/customer milestones described earlier, it's time for tech founders to create a role for themselves in their burgeoning companies other than CEO. A founder must find someone who (1) is a great cultural fit and (2) has a strong track record of scaling young companies.
Most importantly, it's imperative for the founder to stay at the company and find an appropriate senior management position that best suits his or her skill sets. Leaving the company at this critical stage can be crippling. That's because companies that lose their founders often lose their souls. When the founder leaves, passion soon follows.
So if you're a tech entrepreneur-in-waiting, there's never been a better time to take the leap and start your own company. Some of the best tech companies in the world were created in market downturns when fear and uncertainly cause paralysis among potential competitors.
Just remember to start looking for your replacement as CEO soon afterward.
Mark Solon is managing partner at Highway 12 Ventures in Boise.
Starting Up is a series published on Thursdays. The columns grew from discussions between the Statesman and local tech and entrepreneurial leaders and are coordinated by Julie Howard, a specialist for the Idaho Office of Science and Technology. Reach her at julie.howard@commerce.idaho.gov.
Story Comments
We welcome comments but ask that you remain on topic. Some comments may be reprinted elsewhere in the site or in the newspaper. Comments that are profane, personal attacks or otherwise inappropriate or are off topic are subject to removal. Repeat offenders will be blocked. Do not flag comments merely because you disagree with the comment.