10 Essential Pieces of Advice for Founders
Hard Truths for Stubborn and Arrogant Founders
I’m not a coach or a mentor, and I have little patience for people who self-appoint these titles. That said, the following advice is meant to help founders and executives address real, practical challenges in running a company.
During a recent conversation with two friends, the topic of the toughest role in a business came up—being a founder or a C-level executive. Here's my two cents, shared in 10 pieces of advice. These are also valuable for executives at all levels.
Eliminate Recurring Meetings
Meetings are a cancer in tech companies, especially startups. If you’re bold, eliminate slides and “flowery presentations” altogether. This is one of the most crucial pieces of advice I can give. Meetings filled with unnecessary slides are wasting company time and draining resources. Cut them out!Define and Display Your Company’s Rules
Write down your company’s core values and rules, then make them visible—on paper, on the walls, or as part of your culture code. This makes it easier to provide feedback when everyone knows what’s expected. Your company culture code is the foundation of success.
Kill Gossip and Intrigue by Promoting Transparency
Gossip can destroy a company from the inside out. Good communication is key. Founders and executives often overlook or ignore negative comments circulating within the team. A quick, transparent email to all employees can sometimes be more effective than an all-hands meeting.Don’t Get Comfortable with Large Cash Flows
Even large companies must be prudent with money. In startups, cash flow can fluctuate rapidly. You may often need more capital than you have. Excess money in the bank can sometimes lead to complacency. Don’t be blinded by a fat bank balance—stay disciplined.Dine with Your Competitors
Innovation and market growth can be better achieved through collaboration, even with your competitors. Humble yourself, learn from them, and get insights into their approach. Competition forces you to improve your product, your distribution strategy, and make smarter decisions. Competitors can develop a market together.
Embrace Humility
I’ve seen hundreds of founders fail because of their egos. Ego is a startup killer. Smart people can raise money and manage teams, but when they lose sight of the true meaning of building a company, they falter. One of the most humble entrepreneurs I know is David Vélez, CEO of Nubank—his humility has been key to his success. I always remember that.Respect Your Time
While some meetings and ceremonies are necessary, founders often get bogged down by unproductive meetings and time-wasting coffee invitations. Your time is your most valuable asset—don’t let it be swallowed up by distractions.Take Care of Your Health
Be an athlete—both mentally and physically. Exercise regularly to maintain a healthy life. This simple habit can transform everything about your work and mindset. Entrepreneurs and executives who exercise are often better equipped to handle the demands of running a company. What good is being a successful leader if you’re in poor health?“Walk the Talk”
It’s common for C-level executives to talk a big game about values, but actions speak louder than words. If you’re not practicing what you preach, people will see right through you. Hypocrisy doesn’t inspire respect or loyalty. If you lie in business, you’ll lie in life.Identify Toxic People Early
There are individuals who will drain the energy of your company. Whether it’s negativity, incompetence, or just plain toxic behavior—recognize these people quickly and remove them from your team. They will cost you more than you realize. I’ve been fortunate to work with incredible people throughout my career, but I regret not identifying the toxic ones sooner.
Send all the sons of bitches out!
These pieces of advice were inspired by conversations with Guilherme Barreiro, a fantastic executive I had the pleasure of working with at LWSA (B3:LWSA3).
Do you have any other advice for founders? Share it in the comments.