From corporate executive to startup founder: A practical guide

You have spent years honing your skills, managing teams, and driving results in a well-established company. Now, you are? thinking about channeling that experience into something entirely your own.

What could be the reason many executives like you are leaving their stable jobs to begin startups?

For most, they are drawn to the excitement and challenge of building a business from scratch. While for others, it is to birth a legacy or see their ideas become reality. Regardless of what the reason could be, this transition can be scary—though it can also be incredibly rewarding.

As an executive, you have skills and experience that can serve you well in the startup world. But you may need help navigating the differences between the corporate world and the startup world.

That is where this guide comes in. We will walk you through the key steps and mindset shifts you need to make, to succeed as a startup founder.

Let's dive right in!

Why make the leap?

Beyond ambition, most corporate executives feel stifled by the slow pace of innovation and the lack of hands-on involvement in projects. In contrast, startups offer the freedom to explore new ideas, experiment with different approaches, and be directly involved in bringing products or services to life. If you are eager to break free from the constraints of a large organization and tackle challenges head-on, the startup world may be calling your name.

In addition to this, startups are known for their fast-paced and agile environment, where decisions are made swiftly and have an immediate impact on the business. This can be a refreshing change from the time-consuming decision-making process often found in large corporations. In a startup, you will have the autonomy to make decisions quickly, see the results of your actions, and adjust course as needed.

Furthermore, there is a unique sense of fulfillment that comes from building something from the ground up. As a startup founder, you will have the opportunity to create a business that reflects your vision, values, and passions. You will? be responsible for shaping the company's culture, direction, and success. This level of ownership and control can be incredibly motivating, allowing you to tap into your inner drive and creativity. The personal satisfaction of building something from scratch can be immense, and this is a key draw for many executives looking to make the leap to startups.

Shifting your mindset

It is important to keep in mind that starting a business is different from working for a big company. You need to think differently and be okay with change. In a startup, things move fast and don't always go as planned. You'll need to be flexible and willing to try new things. It's important to:

Get comfortable with risk and unpredictability

When you work in a big company, things are usually pretty stable and predictable. But in a startup, things can change quickly and unexpectedly. You need to be okay with not knowing what's going to happen next and be willing to take risks to try new things. This can be scary, but it's also exciting!

Adapt to wearing any hats

In a startup, you cannot just do one job. You have to be willing to do many different jobs at the same time. This means you might be the boss (CEO), but also the person in charge of marketing, product development, and customer service. You might need to function as a 'jack-of-all-trades’—you need to be able to do a little of everything yet being comfortable with not being an expert in everything, but being resourceful and figuring things out as you go.

Keep learning new things

Startups are all about trying new things and innovating. This means you need to be willing to learn new skills and subjects, like technology, marketing, or finance. You do not have to be an expert in everything, but you need to be willing to learn and figure things out as you go. This can be challenging, but it is also a great opportunity to grow and develop new skills.

Leveraging your corporate experience

When you leave a big company to start your own business, it is like moving into a new town. You might not know the streets, but you can still use the skills you learned in your old neighborhood to navigate. The experience and knowledge you gained in the corporate world are valuable tools that can help you build a successful startup. Here is how you can use your corporate experience to implement as a founder:

Use long-term goal-setting experience to guide your startup's vision

As a corporate executive, you are likely familiar with setting strategic goals and developing plans to achieve them. Apply this skill to your startup by setting clear, long-term goals and creating a roadmap to reach them. This will help you stay focused, prioritize resources, and make decisions that align with your vision.

Leverage your network for investors, partners, and advisors

Your professional network is a valuable asset in the startup world. Reach out to former colleagues, mentors, and industry contacts to explore potential partnerships, investment opportunities, or advisory roles. Your network can provide valuable guidance, introductions, and support as you navigate the challenges of building a startup.

Apply corporate financial planning skills to keep your startup financially healthy

One major reason startups fail in their first year is that they run out of money. In fact, cash flow problems are a top killer of new businesses. This is often because founders are great at creating products, but not as skilled at managing the finances.

As a corporate executive, you likely have experience managing budgets, forecasting revenue, and optimizing financial performance. Apply these skills to your startup by creating a solid financial plan, monitoring cash flow, and making data-driven decisions to drive growth and profitability. This will help you avoid common financial pitfalls and ensure your startup remains financially healthy and sustainable.

Overcoming common challenges

Starting a business can be tough. You will face challenges that test your skills and your resolve. Here are some common problems and practical solutions to help you overcome them:

Prioritize with a tight budget and small team

With limited resources, focus on high-impact activities that drive growth like:

• Setting clear goals
• Prioritizing tasks
• Delegating effectively to maximize your team's output.

Also consider outsourcing non-core functions or automating tasks to conserve budget and bandwidth.

Attract talent without big corporate salaries

Most founders tend to get stuck here, trying to figure ways to over deliver to get tangible talents. Truth is, you cannot compete with big companies on salary, but you can offer other benefits that attract top talent.

You can emphasize your startup's mission, vision, and growth potential. Offer equity, flexible work arrangements, or professional development opportunities that appeal to passionate and driven individuals.

Address knowledge gaps through online courses, mentorship, or hands-on experience

As a founder, you do not need to have all the answers just yet. Identify areas where you need improvement and seek resources to fill those gaps. Take online courses, attend workshops, or find mentors who can guide you. Alternatively, learn through hands-on experience—experiment, test, and iterate to develop new skills and expertise.

Key steps to get started

By now, you understand that starting a business can be tough. You might feel unsure about how to turn your idea into reality. You might worry about not having enough money or expertise. And, you might fear failing. But, by breaking it down into smaller steps, you can make progress and achieve success. Here are the key steps to get started:

Validate your business idea with minimal viable product (MVP)

Create a basic version of your product or service to test with real customers. This will help you:

• Confirm demand and interest.
• Gather feedback and insights.
• Refine your offering before scaling up.

Listen to customers and be ready to pivot

This means that as you start your business, you should pay attention to what your customers are saying about your product or service and be open to their feedback and suggestions. This requires being flexible and willing to make changes if something is not working.

Your MVP will reveal what works and what doesn't. Be prepared to:

• Adjust your product or service based on customer feedback.
• Change direction if your idea is not resonating with the market.
• Stay open to new opportunities and perspectives

Stay flexible and adjust quickly as you learn more

As you start and grow your business, you should be prepared to adapt and make changes as you gather new information and insights. This might involve:

• Shifting your approach based on customer feedback or market changes
• Tweaking your product or service to better meet customer needs
• Adjusting your plans or strategies to respond to unexpected challenges or opportunities

It is about being agile and responsive to new information, rather than rigidly sticking to your original plan.

As you iterate and refine your business, remember to:

• Stay agile and adapt to changing circumstances.
• Continuously gather feedback and data to inform your decisions.
• Be willing to make tough choices and pivot when necessary.

By following these steps, you'll set yourself up for success and create a solid foundation for your business.

Real-life examples

Entrepreneurship is a journey filled with twists and turns, and no one knows this better than experienced entrepreneurs like [Pascal Unger], Managing partner at Focal. With years of startup experience under his belt, Pascal has learned valuable lessons that can help you navigate the ups and downs of building a successful business. Here, he shares insights on everything from choosing the right investors and co-founders to finding product/market fit and avoiding common pitfalls. In his words:

“I have learned more than I can imagine. It is very hard to make a full list. But I tried to put down the most important ones today. Here’s what I came up with. I hope you find them useful:

• Be careful who you take money from: It is very similar to a marriage except there is no divorce. Only take money from someone you trust and who you know you'll have a good long term relationship with. Taking money from the wrong person can easily sink a company.
• Be very picky with your co-founders: I strongly suggest not doing it with a friend or even someone you know. There will inherently be conflicts. This is probably the most common reason startups fail or founders leave. Find someone that complements your skills, not where they overlap, so you won't be competing against each other.
• Be realistic: Every entrepreneur thinks they will be in the 1-5% of startups that beat the odds. Chances are, you won't be. But there are ways to make sure you will. And if you are realistic about your cash flow, product, sales prospects, etc. you can be more assured you will get into those successful group of startups.
• Focus on getting to market: Your product does not have to be perfect. But the sooner you get it out there, the sooner you can start building your brand, show off your product, and prove you have a viable business model. Do not burn cash trying to make it "perfect." There is no such thing. All products are works in progress. Just get it infront of people and show that there is interest.
• Find product/market fit as fast as possible: Refine your product and find your customers as quickly as you can. If you can, get some commitments to purchase. Then show them to investors. Prove your model as soon as you can even if you "know" it will work.”

Another executive-turned-cofounder is [Reid Hoffman], co-founder of Linkedin and Inflection AI, who was formerly an executive VP of PayPal. He is a well known investor, entrepreneur and author who has held significant business development roles throughout his career.

Strategic mindsets and strategies that helped these founders succeed

• Be cautious with investors: Treat investor relationships like a marriage, prioritizing trust and long-term compatibility.
• Choose co-founders wisely: Select partners with complementary skills, avoiding friendships or overlapping expertise that can lead to conflicts.
• Realism is key: Acknowledge the low odds of startup success and focus on realistic cash flow, product, and sales projections.
• Prioritize market entry: Launch products quickly, embracing imperfection and iterating based on customer feedback.
• Find product/market fit fast: Refine products and identify customers rapidly, securing purchase commitments to demonstrate viability.
• Embrace uncertainty: Be comfortable with chaos and uncertainty in the early stages of a startup.
• Focus on network effects: Prioritize building a strong network of users and partners to drive exponential growth.
• Cultivate a strong network: Develop relationships and help others to achieve success and build a supportive ecosystem.
• Pivot quickly: Be willing to adjust course in response to feedback and changing circumstances.
• Focus on customer needs: Obsess over customer experiences and needs to drive product development and growth.

Final thoughts

Turning your business idea into a venture requires careful planning, adaptability, and a willingness to learn. By validating your idea with a minimal viable product, listening to customers, and staying flexible, you can set yourself up for success. Keep in mind too that your corporate experience is a valuable asset in the startup world, providing you with a unique perspective and skillset.

Now, take the first step towards turning your idea into a reality with Kedrus . Leverage our expertise in startup strategy, product development, and growth marketing to accelerate your journey. Book a free consultation with our team of experienced entrepreneurs and innovators to get personalized guidance and support. Visit our website to learn more and let's turn your vision into a high-growth tech company.