There is a strong divide between “tech people” and “business people” in startups. Usually people start in “tech” and then move on to “business”. Tech people usually do not want to get into anything “business” and/or pretend not to understand “business”.
Maybe all of this goes back to high school / university where the introvert technology student never was accepted in the extrovert world of fraternities. Later on their careers they were just amazed by all these people that knew all these important sounding concepts and knew exactly what to say in meetings.
Having made the unusual reverse path from “business” to “tech” some advice:
-
Yes, every technical founder actually needs to understand a few basics of business. It is like having some proficiency in English, know how to ride a bike, drive a car. It is essential in “business” but also in your personal life.
- Being able to understand a financial statement: P&L, assets, liabilities, equity, debt, cash flows. It is not hard at all. What matters is not so much the technical terms, but the general approach and philosophy behind it.
- Understanding the basics of law: agreements, liability, ownership. A tiny 2 month course in engineering school I did was probably one of the most important subjects I took on.
-
Ignore and don’t be intimidated by any sophisticated sounding buzzword or concept, if you don’t understand it, ask what it means, or Google the term and you will be surprised how quickly the bubble pops. This is the equivalent of “tech” people claiming their server supports AI-driven cache invalidation (Business people: this does not make sense).
-
Every one can make a pitch or tell a story. Your “tech” background does not automatically imply that you should give the pen to someone else. The flip side of this though is that you should invest time and effort in it, rather than using your background as an excuse not to bother.
-
A career path that start in “tech” does not necessarily have to end in “business”. “Business” is not more important than “tech”. People often confuse “management” with “business”. Some people like running things (management) and that career is measured by how many people report to you, and/or what amount of revenue your are responsible for. There are other careers in “business” where managing people is less important.
Don’t be afraid of the “business side”.
Photo by Hunters Race on Unsplash