Dear Founder Book Summary - Dear Founder Book explained in key points

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Dear Founder summary

Name: Dear Founder
Rating: 4 (60 reviews)
Author: Maynard Webb and Carlye Adler

Maynard Webb and Carlye Adler

Letters of Advice for Anyone Who Leads, Manages, or Wants to Start a Business

4 (60 ratings)

23 mins

Table of Contents

Dear Founder
summarized in 8 key ideas

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Key idea 1 of 8

What’s in it for me? Simple startup strategies that work.

The world has become smaller and more connected. Doing business across borders is simpler than ever before, and the internet provides everyone with easy access to the tools they need to go it alone as a solo entrepreneur. In short, it’s a golden age for startups. But most young companies still fall at the first hurdle. So what’s going on?

Well, here’s the thing: even if you have the greatest idea in the world, you’ll still go bust if you’re not applying a couple of basic business rules. In the end, it’s the simplest – and most common – pitfalls that snuff out so many startups. That means it’s not a bad idea to make like a greenhorn and seek the advice of a grizzled veteran or two when you first arrive on the frontlines. And that’s exactly who you’ll be meeting in these blinks: savvy business minds who’ve seen it all and know the startup scene like the back of their own hands.

However, their essential field manual for founders isn’t just a survival guide. Start putting their tips into practice, and you’ll be well on your way to thriving in one of the most exciting industries in existence.

In these blinks, you’ll learn

why you should seek out investors who bring more to the table than just cash;
how to kick the micromanaging habit; and
why hiring people is like giving away Super Bowl tickets.

Ponder some key questions and make sure you’re fully committed before launching a startup.

If you’re reading these blinks, chances are you’re thinking of going it alone and starting your own business – but have you asked yourself, why? Is it because it’s the thing to do these days, or are you just in it for a quick buck? If you’re not sure, it’s time to ponder some key questions and a couple of sobering facts!

First things first: a lot of startups fail. That’s statistically proven, but it also makes intuitive sense. After all, there’s only so much money, attention and support to go around. A couple of startups enjoy meteoric success – just think of Google or Facebook – while the rest fight for crumbs.

That’s not supposed to deter you, but it is important that you keep it in mind. If you’re going to make it, you’ll need to be extremely hardworking and make smart decisions. Still game? Great, now’s the time to answer that all-important question and clarify your aims. Whether you want to make a ton of cash or change the world, having a clear idea of your goal will see you through tough times.

You’ll also want to make sure you’re firmly committed to your project before jumping in. Remember, adversity is virtually guaranteed. Success is all about sticking to your guns, even when the situation looks all but hopeless. That said, you should put a couple of numbers to that commitment so that you know when to hit the eject button.

You might, for example, say that you’re willing to put $200,000 of your own cash into your startup and that you’re going to stick it out for a year. If you realize there’s little to no chance of your making it after 12 months, it’s probably a good idea to quit before you end up throwing good money after the bad.

And here’s the final thing you’ll need to keep in mind: although you’ll be dependant on your own resources, you’re much more likely to come out on top if you have the support of others. That’s why it’s so important to make sure your friends and family are on board with your project and understand the risks. Your life is going to be hectic, unpredictable and full of long shifts – you don’t want that to cause grief in your relationships!

Successful fundraising depends on contacts, as well as good planning and listening skills.

Fundraising is vital, but it’s a hard slog. At times, it’ll seem pointless and leave you feeling like Don Quixote – the mad Spanish knight who charges down windmills he’s mistaken for giants in Cervantes’ eponymous novel. But here’s the thing: if you’re struggling to make headway, it might just be because you’ve forgotten a couple of basic fundraising rules.

The key to raising money is finding the right contacts. That means you need to be discerning when it comes to putting together a list of potential investors. So what does that look like in practice? Well, a good start is to make sure you’re targeting people who know your industry. If you’re launching a pharmaceutical product, for example, you don’t want to be calling investors who specialize in the music industry.

Micromanagement is stressful and – ultimately – counterproductive.

As an entrepreneur, it’s natural that you’re protective about your business – after all, it’s your baby. That’s sometimes a problem, though; like an overprotective parent, the urge to micromanage every little detail can be irresistible. But that’s ultimately counterproductive. Running everything yourself won’t just stress you out – it might even kill your beloved company.

Luckily, there are plenty of simple tools you can use to increase your employees’ efficiency without constantly hovering over them. The key is to create a company culture that encourages excellence. That’s all about communicating your goals clearly and motivating people to accomplish them by rewarding achievement. And remember to be generous; if your team completes 80 percent of what it set out to do, chalk it up as a triumph.

Delegating tasks effectively isn’t easy, but the RACI model can be a great help.

Webb knows all about how hard delegating tasks can be. Take the case of one his managers. He was getting great operational results from his team, and the sales figures looked great – but the people under him were constantly criticizing his tendency to micromanage employees. The manager was exhausted, and the team was frustrated by its members’ lack of autonomy.

In the end, the manager decided to stop micromanaging. When the author later asked him how his project was doing, he told him that he didn’t know. He’d delegated the task to his team and washed his hands of the matter. Needless to say, that isn’t exactly a shining example of great delegation!

Effective startups take their time when hiring employees and move swiftly when firing bad apples.

When Webb was interviewed for his first job, a position at IBM, he was asked how he’d feel about firing someone. Webb replied that he reckoned he’d be able to do it but couldn’t imagine it ever being necessary. The interviewer laughed out loud. Webb would soon understand why.

There’s no getting around it: some people just aren’t cut out for their jobs. Ask the average manager how many employees he’d hire again after having seen them in action for a couple of years, and he’ll likely tell you that 80 percent of his calls were correct. That leaves the 20 percent: serial underperformers you’d be better off replacing.

Reminding yourself that nothing lasts forever is the best way to overcome stressful situations.

Stress lurks around every corner when you’re an entrepreneur. Take it from Webb. He remembers getting up one morning at 5:00 a.m. because he had a two-hour drive ahead of him to get to an 8:00 a.m. meeting in San Francisco. Before heading out, he sat down to quickly shoot off a couple of emails.

When he fired up his laptop, however, disaster struck: he couldn’t log in to his account, even though he was using the correct password. Reloading the page didn’t help, either. To top it all off, Webb had a nasty bout of the flu and was feeling awful. It was the worst possible start to an already pretty intense day.

New kids on the block make fundraising tougher, but competition can also keep you on your toes.

A couple of years back, Yahoo began developing a flight search tool called Hipmunk. The project looked set to become a success until Google dropped a bombshell: it was working on its own competing service. It was a blow for Yahoo. No wonder: competition, especially from a giant like Google, always makes fundraising a lot tougher.

But that kind of challenge doesn’t just frighten managers and employees; it also tends to scare investors. In fact, it’s usually when they ask you if you’re worried that you know you’d better start worrying! So what can you do when a rival moves onto your turf?

The best reaction to a crisis is to make sure it’s real and then act swiftly to defuse it.

Imagine a bomb scare on a subway system. The authorities have to react, but they also need to make sure they’re reacting in the right way. In other words, the best thing they can do is make sure they’ve assessed the situation correctly. That’s also true in business.

If you find yourself in a crisis, the most important step is analytical: determining whether the crisis is real and, if it is, finding out just how bad it is. To do that, you have to make use of a key managerial skill: listening. After all, it’s usually your employees who’ll first notice something’s wrong. If you want to anticipate issues, you’d better keep your ear close to the ground!

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What is Dear Founder about?

Dear Founder (2018) is a comprehensive introduction to the basics of setting yourself up in business and founding a kick-ass startup. Packed full of handy tips and actionable advice from seasoned industry pros, these blinks will prepare you to both preempt and overcome everyday obstacles on your way to the top.

Best quote from Dear Founder

Once committed, dont look back and wonder; put all of your energy into making this successful.

—Maynard Webb and Carlye Adler

Who should read Dear Founder?

Entrepreneurs
Leaders
Mentors and coaches

About the Author

Maynard Webb is an investor, the former COO of eBay and Chairman of the Board of Directors at Yahoo. He specializes in supporting promising startups, and also has his own startup, Everwise, which mentors entrepreneurs.

Carlye Adler is a prize-winning journalist who has co-authored numerous books, including the New York Times bestsellers Meditation For Fidgety Skeptics (2017) and Startup Land (2014). She is also a regular contributor to magazines such as Business Week and Forbes.

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Entrepreneurship Management & Leadership

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