Entrepreneurship 295a-1

Founder to a Successful CEOMastering the Transition1EntrepreneurshipAll rights reserved Naeem Zafar

1Founder to a Successful CEOMastering the TransitionNaeem ZafarFaculty member, Berkeley-Haas School of BusinessTwitter: @naeemwww.NaeemZafar.comCEO, Bitzer Mobile Inc.

2EntrepreneurshipAll rights reserved Naeem Zafar2Personal BackgroundFaculty at Univ of Calif Berkeley Haas business schoolFounder Concordia Ventures advisory to entrepreneursCEO of four companies (semiconductor & software)Worked in engineering, research, marketing & salesExperience at one large multinational & 7 startupsOne IPO (Initial Public Offering)Wrote six eBooks on entrepreneurship (www.NaeemZafar.com)Raised over $70M in multiple ways (VC, asset sale, debt, angel)Traveled to 73 countries, lived in 3Brown University 81, Univ of Minnesota MSEECharter member of TiE Silicon Valley President of OPEN Silicon ValleyAdvised or mentored over 1000 entrepreneurs President of Brown Regional Council on Entrepreneurship3EntrepreneurshipAll rights reserved Naeem Zafar3All Rights Reserved (c) Naeem ZafarBizEducationWorkshops.com & ConcordiaVentures.comFive Stages of a Startup CEOStartup CEOFund raiserLeader & the crisis managerPost-startup CEOThe transitionEntrepreneurshipAll rights reserved Naeem Zafar4

The Startup CEOOften an engineer thrust into being a CEOEngineers are problem solvers High IQ, but low EQUnexpected role & demandsEntrepreneurshipAll rights reserved Naeem Zafar53 Clarities for a Startup CEOLiving in the fogMost of the time on trivial issuesWhat is urgent vs. what is importantMost problems are people problemEntrepreneurshipAll rights reserved Naeem Zafar6Getting Used to New Role(almost) no one will tell the truthYou will never be liked (again)You will have to learn to read between the linesWhom to consult withEntrepreneurshipAll rights reserved Naeem Zafar7CultureCulture is how things are done when there are no written procedureCEO/founder actions defines the cultureCollaborative? Authoritative? Consensus-based?EntrepreneurshipAll rights reserved Naeem Zafar8Fund RaisingFund raising is most important job that a founding CEO hasThis cannot be delegatedIt will consume youMethodical about not over-shopping the company & researching before you approach investorsEntrepreneurshipAll rights reserved Naeem Zafar9O2Learn Difference Between Sales & MarketingNot everyone can make the transitionAll rights reserved Naeem Zafar 10

Filling the RolesCTO: outward facing technical evangelistTechnical architect vs. professional development managerSales head: look for a gladiator (not a professional sales person)What to outsource?EntrepreneurshipAll rights reserved Naeem Zafar11Building Sales OrganizationYou must be the first sales person yourselfDo not hire too soonSales people are hardest to hireBut easiest to fire!All rights reserved Naeem Zafar 12Types of Sales PeopleHunters or GladiatorsBusiness development expertsAccount executives (professional sales person)

All rights reserved Naeem Zafar 13GladiatorsSolo huntersThey go away, dont check-in frequently, bring back customers having sold the productMake sure that they sell what you make

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the Professional SalespersonUsually trained at a big companyRequire support staff to succeedGood at taking orders & building relationshipsexpensiveAll rights reserved Naeem Zafar 15

Biz Dev ProfessionalGood at making large alliancesExpensive to maintainUsually needed once you have a productAll rights reserved Naeem Zafar 16TimingAll rights reserved Naeem Zafar 17Bootstrap seed series A series B series C exitUnderstand customers unmet needPrototypeProduct developmentDeploymentProliferationTimingYou will need different people at different stagesAll rights reserved Naeem Zafar 18

Bootstrap seed series A series B series C exit

Founders vs. EmployeesOwner mindset vs. employee mindsetEmployees have entitlement mentalityFirst 10 hires will set the tone for the rest of the companys lifeEntrepreneurshipAll rights reserved Naeem Zafar19Startup HiringA players hire A players, B players hire C players

Are these the very best people in the world that I can get for this job?EntrepreneurshipAll rights reserved Naeem Zafar20LeadershipLeadership is not pleasing everybodyIt is doing the right things, for the right reasons

Are you willing to be unpopularEntrepreneurshipAll rights reserved Naeem Zafar21Managing the BoardTrust build it, earn itCommunicating bad newsCommunicating good newsBeing preparedHow often to approach themEntrepreneurshipAll rights reserved Naeem Zafar22Board CommunicationThree buckets Things that you are informing the Board Things that you want to present to the board and seek their input before YOU will make the decisionThings that you want to present so that the Board can make a decisionEntrepreneurshipAll rights reserved Naeem Zafar23PrioritiesSeparate what is important from what is urgentSpend at least one day a month of disconnecting & thinking about the big pictureCreate emotional buy in from peopleEntrepreneurshipAll rights reserved Naeem Zafar24Essential SkillsClarity in your thinking NetworkingCommunicationsSellingEntrepreneurshipAll rights reserved Naeem Zafar25Crisis ManagerOver communicationAvoids gossipListen, gather informationLook in control Even if you dont feel like it (and you wont!)Explain your actionsEntrepreneurshipAll rights reserved Naeem Zafar26The Post-Startup CEOTime will come to create processesDesign efficient processesStructure can create efficiencyThink scalabilityWhen to be frugalMinimize fixed costs so that you can be nimbleEntrepreneurshipAll rights reserved Naeem Zafar27Know the TimingWho exerts control & power in a companyAll rights reserved Naeem Zafar 28Startup 1st productsales $1-10MSales to $100M

The Transition The time will come when you are not the right person for the jobDeal with this gracefullyHelp plan itSeek mentors outside the companyEntrepreneurshipAll rights reserved Naeem Zafar29FounderThis is an honor & obligationWear it wellIt is beyond the title that you may carryEntrepreneurshipAll rights reserved Naeem Zafar30Things Founders ForgetControl is not same as ownershipAll ideas have to be chiseled away to be refined encourage debateLearn about vesting, protect equity

EntrepreneurshipAll rights reserved Naeem Zafar31Dont Lose PerspectiveEntrepreneurshipAll rights reserved Naeem Zafar32

SummaryThis transition is not easy & there is no school for itThe most important asset is people invest in people & reward loyaltyThis company is not the end game!EntrepreneurshipAll rights reserved Naeem Zafar33SummaryStarting a business is not easy but a lot of funThe most important asset is people invest in people & reward loyaltyThis company is not the end game!Startup WorkshopAll rights reserved Naeem Zafar 34

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