Lesson #1 — Embrace the Startup Mindset
Joining a start-up as a CTO exposes you to challenges unlike any other role because, essentially, you are IT. Before diving into a startup, adopting a “startup mindset” is advisable. Your world will shift on a daily basis and your attitude needs to change too.
“The greatest discovery of all time is that a person can change their future by merely changing their attitude” — Oprah Winfrey.
These points may not apply to everyone, but they are worth considering:
Imposter Syndrome — We all have it, no matter how many years you’ve been in the tech industry. People are going to look to you to make decisions or have opinions on a wide range of topics. Worst of all, people are going to be expecting you to know every trend within your tech space. Essentially, you’ll need to learn everything about your business or domain.
Shares as Payment — As an early employee, you might be tempted to demand a large % of shares/equity as payment for your work. However, as the company successfully raises more funding, your shares will ultimately be diluted. A good CEO / founder will tie your remuneration package to the quality of your work and ultimately how the startup progresses (e.g. milestone vesting). Also, shares are not a substitute for wages. Of course, start-ups aren’t always flush with cash but if vendors and suppliers are getting paid, then there is no reason you shouldn’t too. You should be paid what is fair, based on the financial resources of the business.
There is No Comfort Zone — Do you plan on remaining a hands-on engineering CTO? Do you want to avoid client or investor conversations? Well, that’s not quite how a startup works. Understandably, your investors and big clients will want to know who they are doing business with and expect to meet with the CTO. As such, expect to do things that you aren’t fully comfortable with, but be careful not to push your limits too far.
There is no Budget — There is no “right” budget for a start-up, the right budget is the amount of money you have available. This will be a shock if you come from a “big tech” or a well-funded industry that throws a lot of money at engineering. Be aware that, even if you raise tens of millions, only a small proportion of that will be for your team. So, focus your expenditure on activities that will drive the business forward.
Chasing Perfection — You do not have the time to make your pipelines, documentation, and code look neat or pretty. Sure, this is really important when you have a large team, however, your startup will have a limited budget and short deadlines. So, do the bare minimum and then iterate on it until you reach the value inflexion point.
Learn about your Business — If you were part of a large company, you probably weren’t exposed to the full end-to-end business picture. You may be used to dedicated departments but, as a startup CTO, you are the supplier relations and recruitment team. You will need to learn how you are going to make money, handle finances, negotiate deals and report to investors. Prepare to broaden your horizons — you never know, you might even enjoy dealing with accountants!
Leverage your Network — When you join a start-up, you have limited resources in terms of time, money and people. So, you need to make the best of what you have available. As such, you need to combine your knowledge with your network to maximise value. One of your contacts will know someone who knows someone who can solve your problem.
Surround yourself with Mentors — If you’re a younger CTO, find a mentor who you respect to guide you on your journey. If you’re a more established CTO, reach out to your contacts — you’ll be surprised how many people are willing to help you (even if you’re a small business)! If you have a good reputation, people will most certainly be interested in what you’re doing and won’t be concerned about the size of the business. They’ll assume you’re building a start-up for a reason and that with you there, there’s probably a good chance it will get somewhere.
As I mentioned in the introduction, I remember the days when I had to relearn how to patch servers. If you saw how the cabling was connected, you’d have thought a toddler did it!
Jokes aside, going back to basics helped me reinforce some of the core fundamentals of tech. It helped me realise that, in previous companies, I hadn’t implemented things most optimally. I wasn’t aware of the newest trends or best practices because I wasn’t so hands-on.
During this initial phase of a start-up you will learn a lot, so be open to change and don’t be afraid to seek advice. Most importantly, don’t let your ego get in the way — startups are one giant learning curve!
Recommended reading: Zero to One (Peter Thiel) and Shoe Dog (Phil Knight)
Take me back to the Startup CTO Handbook >
Go to Lesson #2- Know what you’re building
This guide originally appeared on Medium, you can find the original here.