tech-company, co-founderScenario: A, B and C are co-founding a company. B and C are technical experts while A is more like into marketing. A is personally liable for any expense, but B and C aren’t paid (only equity). A is holding everything about money, no details on how much the company has spent, no details on the bank account for the company, no feedback on whatever marketing survey has done, nothing like that. A is just concerned whether B and C can do their jobs.
Question: Is this a healthy way to for A, B and C to run the startup?
Is this a healthy way to for A, B and C to run the startup?
No
This is completely from a personal experience from my own startup journey (where I was the tech guy):
Even though marketing isn’t their area of expertise, they deserve to know how the campaigns went, and where the budget has been spent and what the ROI (Return on Investment) is.
Why?
Because, all of them are a team, and they deserve to know everything very transparently, so that there doesn’t exist any mistrust. However, you can always trust (and have to) trust your marketing co-founder with small expenses. Asking a detailed prescripts of every little expense is a bit uncomfortable, as marketing and growth in startups do need bold moves sometimes (maybe most of the times.)
no details on how much the company has spent, no details on the bank account for the company, no feedback on whatever marketing survey has done, nothing like that
Doesn’t sound very transparent, so doesn’t sound healthy.
So, the tech guys should have enough trust on the marketing guy for taking minor risks with the money, and a basic knowledge of how the money is flowing, the state of growth of the company, and the ROI on the money spent on marketing campaigns, and vice-versa.
Short answer: No.
Where is the leadership? Where is team? Where is trust? Where is competence in each others strengths, and compromise with each others weaknesses.
Ships have a skipper who leads and undertakes decision making that the crew follow. Each contribution from the crew is important, but if they any one decide to do their own thing, or decide not to do what is expected of them, the entire ship is at risk. It will take a mild storm to blow things off course, and not much more to sink it.
If A,B and C got these issues now, do you really think it will improve?
Aside from whether it is “unhealthy”, it is more or less guaranteed to fail.
Scenario 1: B and C are supposed to be leading the technology aspects of the company, but they can’t do any realistic technical planning unless they know what resources are available (i.e. finance) and what customer demands the company is trying to satisfy (i.e. marketing).
Scenario 2: B and C are just to be “geeky grunts” who just do what they are told by A, but A is a marketing/finance guy who doesn’t actually know how to (micro-)manage them.
No, was in this situation, and ‘A’ embezzled everything. B,C have the RIGHT to know ALL details, and the DUTY to know (Do you want to be set up for a liability beyond what you think you have?) and A has to be both RESPONSIBLE and ACCOUNTABLE to B, C ..irrespective of WHO makes the decisions or controls the company.
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