Over the years of working with founders, I’ve noticed a pattern in the characteristics that separate great founders from good founders. So, I’d like to share my top ten characteristics of great founders that I think contribute most to this distinction. I’ll share five in this blog post and the remaining five in my next blog post in a couple of weeks.
One might assume that the main difference between great and good founders is that one of them made a lot of money for their investors and the other didn’t. That’s the obvious response, but not the full answer. That’s an outcome, not a characteristic.
The best founders I have interacted with all demonstrated the following characteristics:
They are always on time.
Punctuality is not just a courtesy you’re obliged to show to others. It’s a principle you should live by. It demonstrates that you value your time and the time of others. When founders consistently show up on time for meetings with me, it makes me think that they also show up on time for their employees, partners, service providers, clients, and likely their family and friends. The most successful founders I have ever worked with have rarely (if ever) been late to a meeting I had with them. There’s a cliché that says “90% of success is showing up.” I’d modify that to say “90% of success is showing up on time.”
They don’t hide bad news.
The one thing investors hate is surprises. In the business world, receiving “no” news is far worse than receiving “bad” news. Experienced professionals understand that sometimes things don’t go as planned. One of my mentors in the past told me that “problems is business.” Founders will inevitably face challenges in the business. It’s completely normal. When founders are forthright in sharing their struggles, it demonstrates maturity and it’s often the best and fastest way for them to get the help they need.
They get to the point quickly.
Perhaps this is a matter of personal preference, but I enjoy working with founders who provide straightforward responses with no jargon or fluff. They share the hard facts first and the supporting facts and opinions later. I’ve observed this same behavior in high-ranking executives and CEOs. Individuals at these levels are usually highly effective communicators. The key to being or becoming a great communicator is learning and practicing succinctness. My motto is as follows – Tell people upfront what they need to know and then tell them the details.
They know their numbers.
Great founders understand and are able to clearly articulate the core metrics that drive their business. Not every founder is an expert financial modeler, nor do they have to be. But at a minimum a founder should know what’s happening financially at their own company. For all business owners, cash is king. And knowing how much cash you have and how long you’ll have it, should be table stakes. A founder who can manage core operations and at the same time stay aware of their numbers often makes clearer and more informed decisions about how they strategically grow their business.
They are adaptable.
Adaptability is one of the least discussed characteristics in the startup world. Being adaptable as a founder doesn’t mean you’re someone who constantly changes their mind and is easily swayed by outside voices. Adaptability is a necessary skill for building relationships with different types of people and stakeholders such as your employees, investors, service providers, and others. It’s also beneficial for the evolution and enhancement of your service or product. As previously stated, sometimes a founder’s growth strategy doesn’t go as planned. But adaptable founders are capable of adjusting their approach to find solutions (in a timely manner) that give their business(es) a higher probability of long-term success.
Key Takeaways
In summary, punctuality, not hiding bad news, brevity, financial awareness, and adaptability will take founders a long way. I tell my children that achieving greatness doesn’t come from doing one big thing really well one time. Greatness is achieved through the compounding effect of doing the little things well all the time.
In my next post, I’ll share my five remaining characteristics of great founders that I believe make founders stand out from the crowd.
