My nearly 20 years in startups have taught me several valuable lessons. Valuable, because those lessons have cost me time or money — and usually both. My failed startups outnumber my successful ones, by a long margin. But, as I like to say, I still get in the batter’s box and swing for the fence. I have learned that the people you have on your team are much more important than the idea. Theodore Roosevelt says it best: “The best executive is the one who has sense enough to pick good men to do what he wants done, and self-restraint to keep from meddling with them while they do it.” If you can practice this, then you have a better-than-average chance to succeed. I have seen more GREAT ideas go bad because the greed or ego of the principals gets in the way. Greed: “I will NOT share MY company with anyone.” Ego: “I know it all and my idea is great, so don’t try to improve it.” These are just a few of the killers of great startups. Below are 13 of my do’s and don’ts that I have lived and can tell you firsthand. Get to know them, and hopefully, the lesson you learn will be valuable.
Do’s & Don’ts for Creating Value in a Startup
- Do something you know and like.
- Don’t think you know it all.
- Do ask for help from those who know more than you (everybody!), and get experienced startup help, especially for the executive level.
- Don’t take money from anyone — be picky.
- Do be prepared to spend more on lawyers than you thought.
- Don’t think acquirers buy you or want you.
- Do understand that acquirers buy IP and customers.
- Do know your exit strategy from day 1 and that the most likely exit will be failure.
- Don’t let that stop you — it gives you experience to succeed on your next attempt!
- Do understand your most likely positive exit will be via acquisition, so develop your company on that premise.
- Don’t spend too much on capital items that an acquirer will not need, i.e., a building, manufacturing equipment — buyers don’t buy capital equipment or property.
- Don’t let “best” become your holy grail. Remember that “best” is the enemy of “better.”
- Do share ownership with your team, as they will make you succeed or help you fail.
About the Author
Mr. Wynkoop has been in the medical biotech industry for over 30 years and is a veteran entrepreneur. He has contributed to the genesis of several successful startup companies, was instrumental to the growth of a number of companies and has participated in several successful company exits. His experience includes financial and business operations with both public and private companies, including the management of turnarounds, financial restructurings, integration of acquisitions, strategic shifts in core operations and helping grow early stage companies. Mr. Wynkoop’s experience includes being CEO, CFO, president, and VP of sales and marketing. He co-founded OrthoHelix Surgical Designs, which was acquired by Tornier (NASDAQ:TRNX) for $135M (4.6 X annual sales). He was an early contributor in the operations and customer development and relations at RTI Surgical (NASDAQ:RTIX), a leader of biological orthopedic devices.
Marty is the current Entrepreneur in Residence at the University of Florida College of Engineering. Additionally, Mr. Wynkoop is on the board of directors of several companies. Marty is married to Patricia, and they have four children and six grandchildren.
Today, Marty’s consulting firm, KoopCo, LLC, assists and coaches small companies and startups in strategic growth, financial strength, sales, marketing development, regulatory and quality compliance.
You can reach Marty Wynkoop at [email protected].