Wednesday, October 22, 2014

The Top 5 Traits Needed for a Startup Management Team

I previously wrote about the key success factors for startups, and the importance of having a solid business plan and model.  I would argue  it is even more important you have a solid management team to execute that plan. Below are the top five things to look for when identifying candidates to fill out your management team.

Read the rest of this post in Forbes, which I guest authored this week.

For future posts, please follow me on Twitter at: @georgedeeb.

Thursday, October 16, 2014

Lesson #188: When Picking a Startup to Join, Focus on the Company (Not the Role)

Startups are really risky.  And, if you are looking to join one, know going in you have a 9 in 10 chance that company won’t be in business within a couple years from now, and you’ll have to be looking for a new job again.  Venture capitalists can get around these odds, by investing in ten companies, hoping one hits it big, with a portfolio driven mindset.  Unfortunately, you as an employee, only get one “bite at the apple” at a time, since you cannot concurrently work for ten companies. 

That means, if you are looking to join a startup, (i) make sure you interview at least 10 companies, before picking one to join (yes, I said YOU interview them—you are not picking a job, you are making an investment bet); (ii) make sure you  pick one that has solid fundamentals in place for success (be sure to read Red Rocket's Definitive Checklist for Startup Success, to learn what that means);  and (iii) you can’t think about it with a specific role in mind—with an early stage company about to take off, sometimes you just need to jump on board anyway you can, buckle up, and enjoy the ride.

This is an entirely different mindset than most people have when looking for a job.  We have been programmed to look for job postings of companies hiring, apply for those specific roles and hope you get a call.  That process, in general, is broken, even for big companies, with too many applicants, and not enough returned phone calls from your applications.  And, with thousands of startups hiring, placing job postings, you have no idea which ones of those have a fighting chance for success.

What I am suggesting is to think like a venture capitalist when looking for a startup to join.  A VC may look at 1,000 business plans a year and only invest in 10 of them.  And, they don’t want to invest in strangers; they prefer to invest in successful people they know or were credibly referred to them (so work your networks).  And, let’s face facts, it is often a herd mentality, they want to find the “hot” companies.  And, often times, that means following the money.  If other respected investors have cut a check into that company, assume they have done a lot of due diligence, and that company must be on to something interesting.  And, if a startup has successfully raised professional capital, they are one step further along in their development curve, to lower the odds of going out of business, and increase your odds your career move will have longevity.

So, with this all said, once you have found that company to “invest” your time in, make sure you get a meaningful equity stake to make it worth the risk and effort, and jump on board in whatever opening they may have at that time.  And, even if they don’t have an opening, creatively figure out how to create a role for yourself.  In early stage companies, there is often a wide range of work to do, and “jacks of all trades” can come in handy, especially if you are willing to put in some “sweat equity” (work without cash salary) for some period of time. 

I am not saying, you as a technologist should try to fit into a finance role, as those skillsets are too far apart.  But, what I am saying is, you as a proven marketer, may be able to fit into a marketing, sales, business development or general management role.  So, be flexible in your thinking, as it is more important to find the right company, than the right role at these early stages.  Happy hunting!

For future posts, please follow me on Twitter at: @georgedeeb.

Saturday, October 11, 2014

How to Structure Your Board of Directors or Advisory Board

Properly structuring your board of directors or advisory board could be one of the most important pieces of determining the success for any venture.  These are the people you are going to be relying on for strategic direction, or voting on all key decisions.  So, it is important you understand their role, and correctly set them up.

Read the rest of this post in Forbes, which I guest authored this week.

For future posts, please follow me on Twitter at: @georgedeeb.

Thursday, October 9, 2014

[AUDIO] @georgedeeb Discusses Keys to Entrepreneurial Success With @entrepreneurjim at @school4startups Radio

This week, Red Rocket's George Deeb had the pleasure of being interviewed by Jim Beach at School For Startups Radio, a great resource for entrepreneurs, serving over 110,000 listeners.  Hear George talk about his entrepreneurial learnings from his CEO roles at iExplore, Media Recall and Red Rocket, and get juicy tips for entrepreneurial success, based on collective case studies he has seen from the over 500 companies Red Rocket has consulted or mentored over the years.

You can hear the interview by clicking the play button at this link.

For future posts, please follow Red Rocket on Twitter at: @RedRocketVC.

Monday, October 6, 2014

The New Rules of Startups, an Interview with @georgedeeb at @RedRocketVC

When small technology startups around Chicago need a friendly ear to help sort through their problems, many call on George Deeb, managing partner of Red Rocket Ventures in Chicago and the author of “101 Startup Lessons—An Entrepreneur's Handbook.” The 45-year-old adviser has consulted with some 500 local small businesses since Red Rocket's founding in 2010.

Read the rest of this post in Crain's Chicago, where George was interviewed this week.

For future posts, please follow us on Twitter at: @RedRocketVC.