A friend recently sent me some slides for an upcoming presentation.
Included in the presentation was a slide
titled, “Founder’s Disease.” He defined
Founder’s Disease as the “Lack of Timely Decision Making, in a Thoughtful and
Logical Manner.” He further indicated
that the result of the disease is “the Singular Cause of Delays, Wasted Effort
and Needless Expenditures in Product Development.”
Founders sometimes are not familiar with the processes involved in
developing their products and often, they lack the experience to price or
manage the development process. They may
have identified an experienced team, but the ability of managing or in trusting
the team has not developed enough to rely on the team. This is often the case when founders that
have never been in an operating role in a business.
Founders come with a wide range of experiences. Nearly all founders are highly educated and
smart and they have the entrepreneurial spirit.
Being smart and having latched onto a technology they love does not
equip them to manage a company. This is
one of the reasons that having great advisors and a good Board of Directors is
important. The founders can gain from
experiences of others and implement the correct strategies. Lack of experience is also the reason that
investors may elect to replace the founder post investment.
Unfortunately, having all
the tools does not lead to using them correctly. Picking out the wrong tool, or being bogged-down
in the decision process, slows progress.
Founders being smart can result in them believing they have the answers
or in engaging in extended analysis but no decisions. They forget that the ability to make decisive
decisions in a timely manner saves money and eliminates confusions. They remain highly focused on making the
right decision but not on ending the process with a decision.
The ability to make these decisions also complicates their negotiations. Founders forget that having specific goals
and needs are part of the process.
Negotiations should not resemble the process of “trying to nail Jell-O
to the wall.” Negotiation
strategies seeking the endpoint of lowest price without a working relationship
can result in a bad result. Similarly, negotiating
with no real idea of what the result should be, makes for a bad relationship in
the end.
As a founder, you should develop strategy and confirm the strategy
with your advisors. Ensure there is
logic and business in the decisions and that it makes good sense. Trying to proceed any other way is like
trying to play chess with a Professional Ranked player. You will likely loose in the end!
Watch out
for Founder’s Disease! Make
solid decisions with help from the right members of your team. Remember that you have a team of people and
getting their input may help you save or make money.