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From Founder to Leader – Building a Company From an Idea

Written by: Linda Jackson

Article Overview: “Right now it's only a notion, but I think I can get the money to make it into a concept, and later turn it into an idea.” -- Woody Allen Much has changed since Woody Allen came up with this line in 1977 – but the basic premise remains – any entrepreneur has the ability to bring an idea to fruition with the right backing. However, it takes more than money to make it work, and one of the main points of pain in building a company is making the transition from founder to leader. It’s a tough transition, and one that many startup founders fail to make.

From Founder to Leader – Building a Company From an Idea

“Right now it's only a notion, but I think I can get the money to make it into a concept, and later turn it into an idea.”
-- Woody Allen

Much has changed since Woody Allen came up with this line in 1977 – but the basic premise remains – any entrepreneur has the ability to bring an idea to fruition with the right backing. However, it takes more than money to make it work, and one of the main points of pain in building a company is making the transition from founder to leader. It’s a tough transition, and one that many startup founders fail to make.

There is a point in every company life cycle when the original team needs to expand. If extraordinarily lucky, this expansion will be funded by revenue, but in most cases there is some form of initial investment that comes from angel investors or friends and family. It’s then that the founder needs to start bringing in outsiders to build out the organization.

In a VC backed startup, the founders rarely survive beyond the first round of funding as they are typically replaced with a trusted team that is put in place by the VC’s. However, there are many companies that bootstrap their way to product creation, and it’s these founders that normally have a hard time making their mark as effective and inspirational leaders as they attempt to scale their idea into a real product and take it to market.

The root cause of this can usually be traced to poor communication skills – a common problem for the typically introverted inventor / entrepreneur. For someone that is used to doing everything themselves, with only themselves to hold accountable, the ability to clearly articulate a vision for the company, create strategic business objectives that align to that vision and then foster buy-in to that strategy is daunting at best.

So what should they do? There are a few good practices that will give any small and growing organization a better chance to succeed.

Be open: Founders need to develop the ability to communicate openly with their staff – nothing fuels discontent more than mystery. If something is wrong, get it out on the table for discussion - immediately. If something is right, let everyone know so the success can be celebrated – no matter how small.

Be flexible: Early stage strategy will be tested by market and customer reality – founders need to recognize the need to course correct, and ensure that everyone understands the reason for changes in direction.

Be inclusive: Founders will be well served by respecting the skills and expertise that outsiders can bring to their company. Too many times the founders of the company keep their own counsel and exclude newer members of the team from high level discussions. Asking for opinion and input to strategic decisions can promote buy-in and pave the way for successful execution.

These are but a few ideas that can help a founder become a leader. With an emphasis on better communication, those who start the ball rolling can inspire others to help turn “my idea” into “our idea” and lead the way to success.

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Article Tags: angel investors, better chance, entrepreneur, founders, friends and family, fruition, hard time, initial investment, inspirational leaders, inventor, life cycle, more than money, notion, outsiders, poor communication skills, premise, product creation, root cause, strategic business objectives, woody allen
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