Entrepreneurs – What If You’re Not CEO Material?

Posted on February 21, 2012 by

This is one of the tough questions of creating a start-up.  This article on Inc.com by David Cohen offers good questions that each founder should be asking themselves about being the CEO of their own startup company.

It’s your company–the product of your own passion and vision. But are you sure you’re the right person to lead it?

Deciding whether or not to bring in an outside CEO is one of the most gut-wrenching decisions that a founder will ever need to make. I’ve seen it many times before.

In 2009, Isaac Saldana and two cofounders started a company called SendGrid that helps companies reliably deliver transactional email—things like purchase receipts, confirmation messages, etc. They went through TechStars in 2009 with much success. Then I invested in the seed round along with Mark Solon of Highway 12 Ventures and we both joined the board of directors. Now Mark and I both have a bias toward founders holding the CEO title. Even so, early on we openly and directly discussed with Isaac the idea that it might make sense to bring in a more experienced CEO in the future. Isaac has amazing technical talent but not much executive-level operating experience.

Isaac was open to that possibility but wanted to stay CEO until it was clear that doing so would negatively impact the business. So we all agreed to monitor the situation. Eventually the time came: Isaac realized on his own that he was learning on the job and it was slowing the company down.

It’s not a moment that’s easy for any founder to confront. What if an outside CEO destroys all that you’ve built? On the other hand, what if you’re getting in the way of your own company?

If you’re thinking about this at your own start-up, here are a few tips to help you make the right decision:

Just because you make mistakes doesn’t mean you should step down. Recognize that there are times where you’re going to doubt your own abilities. You’re going to stumble—it’s part of the game. Because one of the main jobs of a CEO is to set the vision and strategy for the company, I’m a big believer in making one of the founders the default CEO. It’s difficult to find the same level of passion in an outsider. So take your time, and trust that you understand what is best for your business.

Talk to advisors you trust, then trust them. When Isaac realized his company needed a new CEO, he came to us and together we agreed to begin a CEO search. Shortly thereafter we found and hired Jim Franklin for the job, and ever since the business has taken off. Isaac has incredible technical skill and he’s a great product visionary. Bringing in an outside CEO has let him have a greater impact on the company because now he’s focusing on what he does best—the technology.

To read all of the tips go to: http://www.inc.com/david-cohen/what-if-youre-not-ceo-material.html

Still not sure where you should be at your own company?

Isaac and Jim agree that the best role to which you can aspire is cofounder, not CEO. “Think of the founders as the designers of the business,” Jim says. “The CEO gets the often unenviable job of execution. The CEO has a lonely job. Every other employee is a full member of a team—be it the management team, the founding team or a functional team. But the CEO has to maintain some distance from everyone else. In the military they say leaders should be friendly, but not familiar.”

If that doesn’t sound like your style, maybe it’s time to reevaluate your own strengths, weaknesses, and motivations. You’ll come to understand intuitively if and when the time is right to find a new CEO.

 

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Time for Engineers to Take First Big Step to Entrepreneur

Posted on February 17, 2012 by

Gwinnett Innovation Park is home to several successful companies started by engineers and the Ehub Nspire Program has a number of engineers who are now entrepreneurs.  The following article by Martin Zwilling, Contributor to Forbes, outlines seven steps from engineer to entrepreneur.

Forbes: It’s a Big Step from Engineer to an Entrepreneur

Every engineer who has invented some new technology, or is adept at creating solutions, believes that is the hard part, and it should be a short step to take that solution to market as an entrepreneur. In reality, that short business step embodies far more risk, and a poor technology solution is not near the top of most lists of common reasons for business failures. In fact, a recent Duke and Harvard survey of over 500 technology companies showed that only 37% of their leaders even have engineering or computer science backgrounds. Clearly, engineers should think twice before assuming they have an advantage over the rest of us toward being an entrepreneur. Now there are many resources out there to help engineer entrepreneurs, such as a recent book by Krishna Uppuluri, “Engineer to Entrepreneur: The First Flight.” He identifies the key business misperceptions of most engineers, and provides a workbook approach to provide a quick-start on various business lifecycle topics. I’ve summarized his points, and added my own, as follows:

1. “Everyone loves ‘cool ideas’ and new technology.” Before investing a lot of time and money into any idea, entrepreneurs should assess the commercial viability. That means evaluating third-party market research, getting real customer feedback from prototypes, and listening to concerns of successful executives in the same business area.

2. “I need to go-it alone to assure quality and elegance.” Engineers assume that the business issues can be resolved later. Working alone, or with other engineers, is great for the average engineer introvert, gives them better control, and minimizes distractions. A team with diverse skills is harder to manage, but more likely to build a thriving business.

3. “Marketing is fluff and selling is black magic.” The old adage, “If we build it, they will come” came from engineers. In reality, building a solution won’t make it connect with customers, manage competition, or communicate and proselytize the offering in the industry. With today’s information overload, selling is always required.

To read the entire article and steps four to seven go to: http://www.forbes.com/sites/martinzwilling/2012/02/16/its-a-big-step-from-engineer-to-an-entrepreneur/

Certainly there are many examples of great companies led by engineers, including Microsoft with Bill Gates, Oracle with Larry Ellison, and Google with Larry Page. This is strong evidence that it is possible to make the step from engineer to entrepreneur, or team with someone who can provide the complementary skills and perspective. In fact, as Krishna says in his book, the stars are uniquely aligned these days for engineers to be entrepreneurs. The Internet is the great equalizer, allowing all of us to develop broad, as well as deep, skills and insights quickly. With the economy on the rebound, we need more entrepreneurs to satisfy new demands and solve new problems. It is time for more engineers to take the first big step.

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Last week I wrote about entrepreneurs at the university level.  Little did I know, I would be writing  about middle and high school entrepreneurs this week.

First is Maya Penn, daughter of Nspire’s own, John Penn, Founder of Undercurrent Labs. The second is Anand Srinvasan, a 10th grader at Roswell High School, who is presenting his science fair project at the White House today.

John Penn writes to tell us about his daughter, Maya’s success as an enterpreneur. She was recently featured on Channel 5 news in Atlanta this week and also in Forbes Magazine.

John: This story about my daughter Maya, was on the news this week on channel 5, Maya representing the entrepreneurial spirit and values that my wife and I have taught her.   I can’t help being a proud dad.    

Best Regards, John Penn – Undercurrent Labs

To see Maya in action go to the following article and video.  It’s worth the time.

http://www.myfoxatlanta.com/dpp/good_day_atl/Canton-11-Year-Old-Girl-is-Entrepreneur-20120131-gda-sd#.TyfWD0RW2d4.twitter

While watching Maya’s video interview, I was very impressed with how poised she is at such a young age and her fashions are quite lovely. Congratulations to John and his wife.  Thank you for sharing Maya’s story.

At the high school level is Anand Srinvasan, a Roswell High School Student/Scientist, who will be meeting President Obama today at the White House.

The first Friday of each month, I work at my daughter’s school as a greeter at the front door.  Last Friday, I was fortunate to meet Anand who was telling the Roswell High School faculty about his last minute trip to the White House to show his science fair project, which examines the use of electroencephalography (EEG) and prosthetic technology to make a more functional artificial limb. 

To read the entire story about Anand go to:  http://roswell.patch.com/articles/roswell-high-student-scientist-to-meet-president-obama-tomorrow

Both of these students have bright futures, somehow this just feels like the beginning of many new creations to come.  Well done Maya and Anand.

Posted on February 7, 2012 by | Leave a comment

What If Universities Recruited Entrepreneurs Like They Recruited Athletes?

Posted on February 1, 2012 by
Being surrounded by the Nspire entrepreneurs at eHub, it is so interesting to hear their stories and the steps that lead them to eHub.  I can only imagine how much easier life would be if they had been recruited by a major college and been given assistance in creating their dream.  The following article by John Dearborn in the Huffington Post suggests that our country might benefit more from recruiting entrepreneurs rather than or in addition to recruiting scholarship athletes.

 

Nearly half of American youth between ages 8 and 24 are enthusiastic about starting a business, or have already have started one, according to a Harris poll done for the Ewing Marion Kauffman Foundation in 2010.

What if big schools developed endowments to recruit entrepreneurship students? In the 2006/2007 school year alone, The University of Tennessee spent $2 million to recruit athletes. Certainly, college athletes can generate a lot of excitement – and a lot of money – for their schools. But entrepreneurs can generate so much more, in terms of jobs and wealth for the U.S. economy. New businesses are job creators. The Kauffman Foundation determined that over the last 30 years, all net new job growth came from companies less than five years old. More entrepreneurs also mean more innovative products and processes for U.S. companies, which make them more globally competitive.

Maybe students are tired of hearing about their gloomy job prospects and want to create their own jobs. Maybe they’re looking for a fast track to technology commercialization (think: Steve Jobs and his iPod). Whatever the reasons, an entrepreneurial education will serve students well in life, no matter what career paths they choose.

For starters, entrepreneurial education prepares students for unstable and fast-changing job markets. “As the economy changes, as career outlooks change, as various industries change, entrepreneurial education can provide a backstop for people who may at some point have to fend for themselves or create some of their own opportunities,” said Bob Cohen, CEO of Braintree Business Development Center in Mansfield, Ohio.

“The more you can expose students to that idea of entrepreneurship, the less foreign or risky the idea becomes, and the more it is viewed as another viable path.”

So if entrepreneurial education is important to America’s economy and global competitiveness, and good for its students, why don’t we recruit entrepreneurs for our colleges the way we do athletes?

More than 35,000 college coaches in the United States recruit talent from 24,000 secondary schools nationwide. And nearly $1 billion in financial aid is awarded each year to more than 126,000 student-athletes at Division I and II institutions. What if the more than 6,000 post-secondary institutions in America recruited future entrepreneurs?

To read the full article go to: http://www.huffingtonpost.com/john-dearborn/student-entrepreneurs_b_1236546.html?ref=small-business-america

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Sometimes, the Best Way to Improve Something is to Begin Again

Posted on January 26, 2012 by

This article about starting over, especially when it’s regarding your top-selling product, was very interesting. Living in Atlanta I remember the disaster called New Coke and anyone on Facebook has seen the outrage that occurs every time Facebook makes a change. Saying that, I have tried Basecamp and am very interested in seeing the ways they plan to improve their project-management software.

Starting Over

Sometimes, the best way to improve something is to begin again from scratch. Even if it’s your top-selling product.

By Jason Fried

In 2004, 37signals, the software company I co-founded, released a Web-based project-management and collaboration tool called Basecamp. At the time, we mostly did Web design; Basecamp was a side project that we developed in our spare time to make it easier for us to work together.

Back then, project-management software was mostly about charts, graphs, statistics, and one-way broadcasts. Basecamp was different. It provides team members with a consistent place to work on projects and tools to swap ideas, share feedback, make revisions, and deliver the final project online. Millions of people across nearly every industry have used Basecamp to manage more than eight million projects; 96 percent of users say they would recommend the software to others.

That can mean only one thing: It’s time to start over.

Why mess with something that has proved so successful? There are a couple of reasons. For one, eight years is a long time. Consider the ways in which the world has changed over the past eight years. We’ve learned a lot about collaborating in that time. We’ve received tons of feedback from users, many of whom have shown us the ways in which they work. Plus, there are technologies available that didn’t exist back then.

To read more about the Basecamp strategy go to Inc.com http://www.inc.com/magazine/201202/jason-fried/starting-over-get-real.html?nav=next

 

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Motivational and Interesting Books to Start off the New Year

Posted on January 20, 2012 by

New Years Resolutions out the door?  I’m not sure I even made mine, they were just abstract thoughts that  got lost while getting my kids back to college and preparing for the Consumer Electonics Show.

All is not lost.  I have two great book recommendations that can put you on track for 2012.  My husband works for a large corporation and these books were passed to him by his boss, he liked both and suggested that I read them too.

The first is The Energy Bus – 10 Rules to Fuel Your Life, Work and Team with Positive Energy by  Jon Gordon.

This book is a Wall Street Journal Bestseller and is in story format making it so much more interesting.  I read it in one sitting several nights ago. I’m sure all of us can see parts of ourselves in George and maybe we know someone like Joy, the bus driver.  The new phrase at our house is “Let’s get on the Energy Bus”.  Our 15 year old just rolls her eyes.

The second book is the Go-Giver – A Little Story About a Powerful Business Idea by Bob Burg and John David Mann

I read this book in December and it is also in story format.  If your business is struggling to get new customers or to get your first customer, this is a good read based on the proverb “Give and you will receive”.  It’s also good if your marriage, friendships or family life could use a little extra help.  I think that’s just about all of us in this crazy busy world of ours.

What business or motivational books have you read lately?  If none is your answer, here’s a place to start.  If you have read something recently, please share it in the comments. I plan to give The Energy Bus to several friends, who are great encouragers.  I want them to know they are my Joy and CEO (Chief Energy Officer).

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Big Week for Three Gwinnett Innovation Park Resident Companies

Posted on January 10, 2012 by

The new year is starting off strong for three GIP companies.

Iconic Data has temporarily moved to Chicago to participate in the three month HealthBox accelerator program. Iconic Data was selected as one of ten companies out of 50 applicants invited to participate. They moved in over the weekend and David LaBorde reports that they are settled in and ready to get started

PerSEEv.Me launched their alpha release over the weekend.  Michael Allenberg wrote:  perSEEv.me is here!  perSEEv.me is a big idea with a simple goal – to give you a simple way to manage all your online persona from one centralized spot on the web, or using your smartphone.  Out of the gate, we support Twitter.  In the coming week or two, we will be adding LinkedIn, Foursquare, Google+, Facebook, & Tumblr. Probably in that order… We’ll be rolling out support for other social media sites over the next 90 days.

Wi-Ex is at the Consumer Electronics Show launching three new cell phone signal boosters.  Represented by AquaPR, Wi-Ex had a big night yesterday at the Digital Experience! media event showcasing the zBoost 4G-V, the zBoost zForce and the zBoost SOHO Xtreme to journalists from The Wall Street Journal, USA Today, CNet, Techlicious and many more.

Hopefully this is just the beginning of a great year for Gwinnett Innovation Park and their resident companies.  Congratulations to Iconic Data, Perseev.me, Wi-Ex and AquaPR.

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