Startup x Corporate [EN]
Article first published 02/05/2019
Are there any benefits being a (co)founder of a start-up when the start-up seizes to exist and you become an employee again ? Does your vision / perception of things change coming out of a start-up experience ? Should you, as a company, hire start-up (ex)founders ?
The answer is a definite yes.
After 17 years of hard labor as an employee within both service- and manufacturing industries, I decided to start my own company. A tech start-up in mobile marketing. The start-up failed after 3 years, and I went back to being a (corporate) employee.
But I learned an awful lot and it did forever change the way I looked at certain things and how I manage business today …
1) Act as if the money is your own hard earned money
When you found a start-up, you need a start- and a running capital. Whether you are accompanied (via fund raising, incubators, public financing, private sector, banks) and put in your own hard earned money (that was sleeping on a savings account), you’ll be looking twice before you spend any of it. Because first of all you had to work bloody hard to obtain funds from 3rd parties (preparations, presentations, convincing, negotiation) and in the end it’s YOUR money you’re spending. You also need enough running capital (cash-flow) to stay in the game, being able to pay your employees, office rent etc. So you’d better be sure that your money is well spend (and avoid “giving it away”).
You start being an accountant, financial director and purchaser at the same time. Making budgets, forecasts and actually measuring these against results to see if you’re on track or need additional energy (read money) to keep going whilst eradicating non business critical costs.As an employee seeing the money of the company as if it was your own money that you invested in that company, helps reduce expenses, unnecessary capital spend and each Euro you use is justified and accounted for.
2) Recruit (ex)founders now !
Why would you not recruit a (co)founder of a (failed)start-up ? They are probably the most productive multi-tasking employees you could ever hire. They have spent more hours a week running their start-up than any of the other employees you currently have in your business. They didn’t stop working because it’s weekend or a bank-holiday and have been available to their customers 24/7. They go every extra mile to make it happen, and “no we can’t” isn’t even in their dictionary. There are no problems as they see them as solutions in disguise. They are flexible, willing and eager to learn and are a real asset to any company, even if their start-up failed.
3) Setting the (no)limits
Think outside the box, a well-used phrase which makes 100% sense looking at the experience of any start-up (co)founder. They have to be creative and find solutions at any time (whether they are financial, operational or other), stopping progress or not moving forward is simply not an option.Borderline behavior (the thin line between what is and what isn’t (legal, allowed)) should be carefully looked at though. Setting the limits in which they can move and act is important, as in the mindset of (ex)founders boundaries are there to be broken (which obviously could have major impacts when you are in a more corporate environment).
4) Company evangelist / Sales guru
Every company should have an evangelist. Or better, everyone in the company should act as an evangelist. - Sangram Vajre
(ex)Founders also become your best company evangelist. If they weren’t already before they launched their start-up, they have become it during : the best sales persons ever. They will spread positive things about the company they work for where they can, and know how to sell your service or product to (almost) anybody. It’s not about being a natural born sales talent, you learn to become one during your start-up period. You have no choice, either you sell your service / product, or you have no revenue. It’s as simple as that. So they get it done, sell and drive revenue to the business and are not afraid of cold-calling, making appointments and presenting in front of CEO’s or big groups of people.
5) Change management
“The only one that wants change is a baby with a filthy diaper”. Not for our (co)founders, they have to deal with change and adapt to any situation. If they are not capable for example to adjust their business model when it’s not working, than the result could be failure of their start-up. Some founders adjust their models several times during their start-up period to find the most profitable one. That takes courage, flexibility and adapting skills. It’s with that same agility they can more easily cope with change.
I’m applying the above 5 points in my day-to-day job and benefit every day from my start-up experience as is the company I work for.
They can count on swift adjustments when necessary, be sure their money is well spend (and all Euros spent are accounted for), count on motivated people, a smooth and oiled organization (in which I have also hired an ex-founder of a start-up!) and much more.So if you ever have a doubt about hiring a(n) (ex)founder (even of a failed start-up), remember the immense value and quality this person can potentially bring to your organization.
