5 Best Pieces of Founder Advice | Found Host Insights

Insights from Hosting TechCrunch’s Found Podcast

Having spent over two years, and close to 100 episodes, as a host on TechCrunch’s Found podcast – which has recently concluded – I’ve gained considerable insight into the methodologies founders employ when constructing their startups.

Throughout the show, I encountered narratives covering a wide spectrum of challenges. These ranged from determining optimal timing for product line expansion to the strategies startups utilize during the recruitment process, and the initial motivations that spurred entrepreneurs to embark on their ventures.

Although I do not have personal experience as a founder, certain lessons and guidance shared by guests resonated particularly strongly. I have distilled these into a concise compilation of five key pieces of advice for founders, blending both pragmatic and philosophical perspectives.

Five Essential Pieces of Advice for Founders

The following represents a summary of the most impactful guidance offered by startup founders during the Found podcast series.

• Embrace Imperfection: Many founders emphasized the importance of launching with a minimally viable product (MVP) rather than striving for immediate perfection.
• Prioritize Focused Growth: A recurring theme was the need to concentrate on a specific niche or customer segment initially, rather than attempting to appeal to a broad audience.
• Build a Strong Culture Early: Founders consistently highlighted the critical role of establishing a positive and resilient company culture from the outset.
• Don't Underestimate the Power of Networking: The value of building relationships with other entrepreneurs, investors, and industry experts was repeatedly stressed.
• Be Prepared to Pivot: Adaptability and a willingness to adjust the business model based on market feedback were identified as crucial for long-term success.

These insights, gleaned from conversations with numerous successful founders, offer valuable guidance for anyone navigating the complexities of building a startup. The common thread throughout was a blend of strategic planning and a willingness to learn and evolve.

Ultimately, the journey of a founder is rarely linear. The ability to embrace challenges, learn from failures, and remain focused on the core mission are essential qualities for achieving lasting success.

The Importance of Founders Embracing Their Weaknesses

Many founders emphasize the value of seeking co-founders or early employees to compensate for their skill deficiencies. However, Parker Conrad, co-founder and CEO of Rippling, proposes a contrasting approach.

Conrad directly challenges the notion of hiring to cover a founder’s shortcomings or tasks they dislike, deeming it unproductive.

He argues that founders should actively identify the aspects of their company they find most challenging and dedicate themselves to mastering them. These areas, often avoided due to discomfort, are frequently the most critical for success.

“The elements of a business that a founder actively dislikes are often the very ones that pose the greatest threat to its survival,” Conrad explained. He suggests that confronting these uncomfortable areas is paramount.

Conrad draws from personal experience, asserting that focusing on what one truly dislikes is where a founder’s time is best spent. This proactive engagement can prevent potential pitfalls.

Why Confronting Weaknesses is Crucial

• Risk Mitigation: Addressing disliked tasks head-on minimizes the chance of them becoming fatal flaws.
• Personal Growth: Taking ownership of challenging areas fosters significant development for the founder.
• Deeper Understanding: Direct involvement provides a more comprehensive grasp of the entire business.

Ultimately, Conrad’s perspective encourages founders to view their weaknesses not as liabilities to be outsourced, but as opportunities for focused improvement and proactive problem-solving.

The Potential Misguidance of Venture Capital

Although a skilled venture capitalist can offer significant value and direction to a new business, locating truly effective VCs is challenging. Even highly regarded venture capitalists may not consistently provide optimal counsel for all startups.

Ashley Tyrner, founder and CEO of FarmboxRx – a company delivering produce boxes directly to consumers to address food desert issues – encountered this firsthand. During her pitches to VCs, she was repeatedly urged to transform her business into a meal kit service, a popular trend at the time.

Fortunately, Tyrner chose to disregard this advice and instead opted for self-funding. She now expresses gratitude for that decision.

“Every VC we engaged with, even those who were relatively courteous, advocated for us to transition into a meal kit business,” Tyrner explained. “However, this wasn’t aligned with our core mission. We intentionally avoided following the meal kit trend.”

Looking back, she is pleased she never sought external funding, and FarmboxRx remains entirely self-financed. Many of the meal kit companies, she notes, have since experienced decline.

Instead, FarmboxRx successfully partnered with insurance providers a few years later. This collaboration enabled them to distribute produce boxes as part of patient prescriptions, creating a highly profitable revenue stream for the company.

The Advantages of Following, Not Leading

A frequent observation when reviewing public relations materials, as is common in my work, is the emphasis many companies place on being the "first" to introduce a technology or enter a market. However, is achieving this initial position invariably advantageous?

Jordan Nathan, the founder and Chief Executive Officer of Caraway, a company specializing in nontoxic home goods, suggests a different perspective. He shared with TechCrunch that he initially felt apprehensive about potentially being a late entrant into the burgeoning nontoxic cookware market. Ultimately, this timing proved beneficial.

Launching after competitors enabled Caraway to identify unmet needs within the existing market landscape. This allowed the company to specifically address those consumer segments. Nathan explained that this strategic positioning was crucial to their success.

“This delayed entry facilitated adjustments to our color schemes, pricing strategy, and the composition of our product sets,” Nathan stated. “While earlier brands had merits, we successfully carved out a unique niche for ourselves within the direct-to-consumer kitchenware sector.”

Strategic Benefits of a Later Launch

The ability to observe competitor offerings and consumer responses before entering the market provides valuable insights. This allows for a more refined product and marketing approach.

Identifying gaps in the market is a key advantage. Companies can tailor their offerings to address specific needs that others have overlooked.

Refining the business model based on competitor successes and failures can significantly improve the chances of success. This includes adjustments to pricing, product features, and marketing strategies.

The Importance of Early Market Entry for All Companies

Although certain startups can rapidly deploy software and begin generating revenue within a short timeframe, this isn't universally applicable, particularly for those pioneering deep tech or ambitious "moonshot" ventures.

However, this extended development timeline shouldn't necessitate a prolonged wait before realizing any financial return. Deep tech companies can and should explore avenues for early monetization.

Joe Wolfel, CEO and co-founder of Terradepth – a firm focused on developing autonomous underwater drones for ocean floor mapping – shared with Found that Terradepth deliberately established revenue streams from the outset.

Despite the fact that fully autonomous drone operation remains a future goal, the company currently delivers comparable services to both governmental and commercial clients, utilizing manual methods and a data dashboard. This is driven by the immediate demand for ocean floor data.

“A key lesson learned from operational experience is that you cannot effectively guide a system that isn’t in motion,” Wolfel explained. “There’s no replacement for real-world learning, and we are actively applying our own solutions daily.”

A parallel strategy was adopted by Paul Hedrick, founder of Western wear brand Tecovas. Hedrick communicated to Found that while he envisioned Tecovas as a direct-to-consumer operation, he rejected a passive approach of simply launching a website and awaiting customer acquisition.

Instead, he proactively initiated sales directly from the trunk of his car at local farmers markets. This allowed for immediate customer interaction, valuable feedback collection, and the generation of early sales revenue.

Key Takeaways for Startups

• Prioritize Early Revenue: Don't postpone monetization while awaiting full product development.
• Embrace Iteration: Utilize early customer interactions to refine your offerings.
• Adapt and Evolve: Be prepared to offer interim solutions to meet current market needs.
• Real-World Testing: "Eating your own dog food" provides invaluable insights.

These examples demonstrate that regardless of a company’s long-term vision, establishing a presence in the market and generating revenue as quickly as possible is crucial for learning, adaptation, and ultimately, success.

The Importance of Company Building Alongside Product Development

In the initial phases of a startup's growth, the primary concentration of founders typically lies in the creation and launch of their product – a logical and often necessary focus.

However, it’s crucial that founders simultaneously consider the development of the company infrastructure surrounding that product.

A Lesson Learned at Etched

Gavin Uberti, CEO and co-founder of the chipmaker Etched, shared with Found a story illustrating this point.

The company initially neglected to establish employee benefits early on.

This oversight became acutely apparent when an employee suffered a broken leg prior to the implementation of health insurance – a situation that proved complex and time-consuming to resolve.

The Consequences of Delayed Infrastructure

Uberti’s experience serves as a valuable reminder.

While rapid iteration and a willingness to “break things” are often encouraged in the startup world, neglecting fundamental company-building elements can have significant repercussions.

Prioritizing employee well-being and establishing essential benefits from the outset is vital for fostering a sustainable and supportive work environment.

Building a Lasting Foundation

Founders must remember that a successful venture requires more than just a compelling product.

It demands a robust organizational structure and a commitment to the individuals who contribute to its success.

Taking care of these foundational elements is essential for building a lasting company that values and supports its employees.