Only 25% Founders Survive IPO listings- HBR quote

A reflection on how founders can re-adjust the sails, re-invent and survive choppy waters.

“Congrats You are a Success !,??Sorry, you are fired”. This is biggest irony, the biggest fear start-up founders live with at multiple stages on their journey to entrepreneurship.??Traumatized by this, many hesitate to onboard credible co-founders, few refuse to dilute beyond a point and many continue bootstrapping to finally realize they have missed the bus.?

Relinquishing control is the saddest part of the entrepreneurship journey. They envisioned it and rightfully deserve the freedom to run it. But, beyond a certain point, things change, business dynamics change, it is no longer about the individual, it’s about the venture.?

This fear is very real. Steve Jobs (Apple), Jack Dorsey (Twitter), Travis Kalanick (Uber), Jerry Yang (Yahoo), Mark Eberhard (Tesla), Rahul Yadav (Housing.com), Ashneer Grover (Bharat Pe).?

So, what should an entrepreneur do??

First and the foremost; Envision the change. Re-invent yourself. Adopt a mentor. Demonstrate you can. Not easy, but if you have the right mentor, it’s doable. The only caveat is to ensure you have a mentor that has incubated and scaled business, a mentor that has the experience of pivoting and re-pivoting, a mentor that has the entrepreneurial streak in him/her. A mentor that can be a good coach and hands hold you in the shadows, helps you readjust your sail, lead and re-invent. Ensure mentor has a mix of professional expertise, been an entrepreneur, understands the chemistry of running a large scale operation, managing investors and also mentored quite a few. A typical CEO coach or a successful professional in large companies is not the answer.?

If you still fail to steer the ship, follow these 10 steps.?

1.?????Decide 3 things at the start; Rules of the game, The stakes and the Time to quit- a Chinese proverb

2.?????Choose your options – Wealth or Power; Rich or King; King or Kingmaker.

3.?????Accept at a certain stage business challenges are far beyond one’s capability

4.?????Start-Up is an emotional journey. Staying emotional despite odds can be a liability

5.?????Hone your strength. Re-align as Product-Centered CEO, not a Business – CEO?

6.?????Facilitate the transition, rise up to be a chairperson

7.?????Accept, the organization is bigger than individual success

8.?????Remember, irrespective, you get all credit as founder and with greater adulation

9.?????Raise the bar. Nurture, invest. Become the Czar of Start-Up community.

10.??Graceful Exit is equally important as a Thundering Entry.

In all fairness, I am not debating who is right or wrong here. I am not debating what you rightfully deserve. I am not even questioning the founder’s capability. At times it is beyond all this- its mixed emotions. It's a combination of many things at play- at times may have nothing to do with the founder or ones capability. But the signs are visible months before the event.?

Be observant. Be mindful. A wise person knows when the time has come. Being emotional will only make it ugly. Graceful exit is an art of negotiation. Afterall, everyone wants peace and a positive aura around the place. Your maturity (posturing) will be celebrated.

Remember you are relinquishing control, not your wealth, neither your status as Founder. If you have no faith on next steps find a buyer and search for the next door; a door that may be yearning to seek your blessings with grace and adulation.?

Remember you will not be the first founder relinquishing control. As per HBR study only 25% of founders survive the IPO stage. It’s not easy and It’s not the only destination in life.

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