The Technical Founder

I remember 30-odd years ago being in culinary school and designing the restaurant that I wanted to build. I probably designed a half-dozen or so concepts that I absolutely knew were going to be winners. It ended up being another 5 years or so before I actually opened one of the concepts after running a successful catering company.

The Technical Founder

In the book, “The E-Myth” by Michael E. Gerber, he discusses this at length and describes it as why most businesses don’t work. The first story he describes in the book was about a baker who loved baking pies, so thought she should open a bakery and found that it was a lot more than what she’d signed up for. So near and dear to my heart.

When a technical founder – someone with a particular gift or skill who starts a business – goes into business, it is to do the thing that they love. My experience has been that they often have a specific mission or way they want to make a positive impact on the world. They serve their clients with great passion, often over-delivering to meet a particular need with the expectation that doing the right thing would come back around to them.

Technical Founder Challenges

Based on what I have seen, there are about 10 technical founder challenges that may cause founders to struggle with growing their companies. Some of these are going to be critical and will keep the business from being successful, while others will inhibit growth and keep the business from becoming as successful as it could be. Some areas where founders may suffer include:

• Financial management, such as how to price offerings so that they are profitable and tracking performance. I have seen many owners develop pricing without taking into consideration what they need to charge to keep the business running and make a profit.
• Determining how to scale the business without compromising quality, maintaining customer expectations, entering new markets and managing the complex business.
• Managing business operations including improving operational efficiency through process engineering, technology while maintaining the same or improving the quality and level of service clients expect.
• Attracting, hiring and managing talent, including keeping them motivated and productive, and building a company culture and values that reflect the reason the Founder started the company
• Client Acquisition and Retention seems as though it has been one of the more difficult challenges I have seen with founders. I’ve seen them go from feast to famine and back, do a ton of ineffective but familiar practices, but rarely able to create a steady stream of prospects to work with.
• Legal Matters such as Contracting, IP protection and industry risks and liabilities
• Business Growth Planning including development, implementation and management of a realistic strategic plan
• Selecting and leveraging the technologies to stay competitive, or implementing solutions without disrupting operations
• Creating an effective culture of innovation to stay ahead of the competition
• Having a “work-life balance” that allows them to have a life outside of work, delegate tasks and avoid the reality of burnout.
• Understanding customers, their needs, being proactive with meeting their expectations and collecting and reacting to feedback.

Conclusion

I am of the opinion that the technical founders that start companies are those that make the greatest positive impact on the world. It is more than seeing a need and filling it, but rather, seeing a problem and being fully committed to solving the problem. In addition to expertise, they bring passion and understanding to their companies that needs to touch as many as possible. Making the investment to overcome technical founder challenges will be their key to making the greatest change.

FAQs

Q: What are the most common challenges faced by technical founders?

A: The most common challenges faced by technical founders include financial management, determining how to scale the business, managing business operations, attracting and managing talent, client acquisition and retention, legal matters, business growth planning, selecting and leveraging technologies, creating an effective culture of innovation, having a work-life balance, and understanding customers.

Q: How can technical founders overcome these challenges?

A: Technical founders can overcome these challenges by planning for and getting the help that is needed. This may include hiring fractional leaders, seeking management consulting services, and implementing strategic plans. It is also important for technical founders to recognize their limitations and not try to do everything themselves.

Q: What is the key to success for technical founders?

A: The key to success for technical founders is to recognize their limitations and seek help when needed. It is also important to have a clear vision and mission for the company, and to be committed to solving the problem or filling the need that the company was founded to address.