Category: Entrepreneurship

Recently I was talking to an entrepreneur and we got into a discussion about the difference between an executive and a manager. Many people claim to be an executive, especially in the startup world, but they aren’t as common as claimed. While executives and managers both manage teams, there are several differences with an executive.

Here are a few ways an executive is different from a manager:

• Executives are more strategic and jump between long-term planning and short-term execution
• Executives set the direction while managers run the day-to-day
• Executives are more likely to push back and debate an idea
• Executives often oversee multiple teams or departments while managers have one specific group

An executive is different from a manager. Entrepreneurs would do well to recognize the difference, especially as the business starts to grow and scale (it becomes more apparent with time!).

What else? What are some more thoughts on executives vs managers?

In the book Traction: Get a Grip on Your Business, Gino Wickman talks about the people component of a business and shares several insights. One insight is how he assesses potential new hires or internal promotions against a simple framework called get it, want it, and capacity to do it:

• Get It – Does the person understand the role and responsibilities? Does he or she “get” what’s expected of them?
• Want It – Does the person have a desire for the position? Do they really want it or are they interested in it just because they feel it’s the next step in their career?
• Capacity to Do It – Does the person have the ability to do a great job in the position? Or, is it likely to be a Peter principle case?

The next time you’re interviewing someone for a position, go through the quick get it, want it, and capacity to do it exercise.

What else? What are some more thoughts on the get it, want it, and capacity to do it idea?

After talking to, and working with, several entrepreneurs that raised a Series A round in the past year, I’ve come to better understand a few of the common next steps once the money is in the bank. For most entrepreneurs, raising a Series A is a full-time job such that once it’s done they want to dive back into the business. Only now, expectations and complexity have gone up.

Here are five next steps after raising a Series A:

1. Choose a System to Manage the Business – To get the business to the point that you were able to raise a Series A required a level of planning, communication, meetings, and more. Now, it’s time to choose, and institutionalize, a methodology to run the company as it scales to the next level.
2. Build the Weekly Operating Metrics Spreadsheet – Everything in the business needs to be well instrumented with clear OKRs/goals and a strong weekly operating metrics spreadsheet covering every KPI in the business
3. Hire an Internal Recruiter – 80 – 90% of the new capital is going to go towards hiring people. Bring on someone in-house to recruit directly as well as interface with external recruiters for the hard-to-find positions.
4. Find a Venture Debt Provider – Venture debt is one of the most cost effective and least dilutive ways to grow a startup. After raising a Series A, banks like Silicon Valley Bank and Square 1 Bank will be eager to offer a line of credit or a term loan.
5. Join a Peer Group Like YPO or EO – Growing a business is hard. Very hard. Join a group of like-minded leaders that are looking to learn from each other.

Raising money is simply a milestone in a long journey, not the destination itself. Follow these five next steps after raising a Series A and set the foundation to achieve the next level.

What else? What are some other next steps after raising a Series A?

Our video of the week is from Google Ventures titled Startup Lab Workshop: Meetings that don’t suck. Learn a variety of best practices for different meeting types, the difference between deciders and reviewers, the power of agendas, and more. Enjoy!

From YouTube: Google Ventures Startup Lab | This workshop focuses on what makes for a good meeting, what kinds to avoid, and how to run them effectively. Meetings can suck the life out of a startup, and can prevent teams from executing. When done correctly, meetings can keep everyone informed, help the company move more quickly, and identify and resolve obstacles.