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#accidentalCEOrise Monday, May 20, 13
#accidentalCEOriseMonday, May 20, 13
#accidentalCEOrise
The Accidental CEOTips for First TimersQ ManningCEO of Rocksauce Studios
Rocksauce started in October, 2010
Mobile Development & Design company, creating software for iPhone, iPad, Android & Web
Founded by myself & partner, Peter Yoder, COO
Monday, May 20, 13
#accidentalCEOrise
Where I StartedBorn & raised in Crockett, Texas.Married right out of High School in 1995, packed up, moved to Little Rock, Arkansas.
Held many odd-jobs, like...• Pizza delivery driver• Bookstore Barista• Telemarketer• Office handyman• Mailroom sorter• Telecommunications Technician
Crippling anxiety disorder.
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Time to Uprade to QI picked up HTML & CSS.
Then I taught myself Photoshop.
Then Illustrator, ASP, Flash and...pretty much any software or technology I needed to make myself more attractive to employers.
By 1999, I was offered a Lead Designer position at WhisperWire in Austin, making twice as much as any time in my life.
Finally, things were rocking!
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About that DotCom Bubble...It burst. 12% laid off. Decided to finally go to college, 7 years after graduating High School.
The Savannah College of Art and Design (SCAD)• President of the Graphics Design Club• Art Director of the Online Student Community• General Manager of Student Television • Graduated with 216 credit hours, out of 185 needed, Cum Laude, Film Student of the Year, and other awards.• And got Divorced
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Back to Austin Returned to design industry as Creative Manager
Made some short films, won some awards
Quit my job to direct a Feature Film, that no one ever saw
Then back to design, this time as Creative Director in the new growing App Industry
Set up a team & process, where I had 24 artists working for me
Then I quit.
Monday, May 20, 13
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Starting Rocksauce StudiosAt another crossroads...• Go work for a competitor?• Make another movie? • Continue to do freelance?• Start my own company?
My film producing partner, Peter Yoder, was deciding: Real Estate or A New Business?
“If you can bring the capital, I’ll bring the know-how.”
B O O T S T R A P
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Why All This?What is the purpose of telling you my long, winding life story?Because this is how you end up as an Accidental CEO.Because if you didn’t attend business school or don’t have a history of running a business, you better have an “I can learn anything!” attitude.
Because running a bootstrapped, “lean” business means wearing hats & making choices you never imagined.
All of the tips which follow come from our mistakes or hard lessons. Learn from our pain!
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Tip #1: Be willing or your business won’t beYou have to put more hours in than anyone else in your company.
Your paycheck needs to be only what you need to survive. You can get rich later. Wear with pride!
Be prepared to be the jack-of-all-trades• Need IT? Do it yourself• Need to make sales? Learn to be a salesperson• Gotta have marketing? Learn analytics & adwords• Website updates? Yup, you’ll do that too.• You will grow immensely in ways you never imagined. Learn to love it!
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Tip #2: Sales & Marketing are your Heart & SoulWhether a tech company or a bakery, realize that without a solid marketing plan & a versatile sales team, you have little chance of success.
Make sure your sales & marketing team can work together. Define a clear line between the duties of each, because these two will step on each other’s toes.A marketing concept the sales team can’t sell to your customers is a waste of time & resources.
But a sales team who undercuts the company’s bottom-line to close is just as dangerous. Balance.
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Tip #3: Know your Numbers & Don’t UndersellKnow what your overhead, cost of customer acquisition, and your sunk costs are.Discover what your margin needs to be, and never sell for less than that. Even cost should have margin included.
Be wary of large deals that seem exciting, but when the numbers are broken down, are actually beneath your hourly needs. They can destroy a bootstrapped business. Cashflow is king. A great business can fail if cashflow isn’t there. Make sure your invoicing & payments are scheduled as you really need them.
Monday, May 20, 13
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Tip #4: Slow to Hire, Cause you’ll be Slow to FireRunning a start-up is different than being a manager at someone else’s company.
Start-up employees sacrifice. They become a second family - always there, always working, always going above and beyond. They are tough to fire, even when necessary.
Don’t be afraid to ask them to work longer hours to get the job done, because this is a start-up.
Adding bodies to payroll will alleviate pressure, but when downturns happen, “producers” quickly become “overhead.”
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Tip #5: Hold Out for the Right PersonAvoid the temptation to fill a needed-role with the first warm-body who applies.
Make sure they have the right skills, the correct personality to match your team, and the work ethic needed to get the job done.
Hire as a contractor first to test out the person’s skill & willingness to do the job correctly.
Don’t be afraid to find diamonds-in-the-rough. People with a great attitudes & desires to learn can save money & earn loyalty for the chance taken.
If you need an expert, pay the cost. But make sure they are actually an expert.
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Tip #6: Under Promise & Over DeliverMake sure clients are happy with what you’re providing.
Make sure your contracts are solid. When a loophole is found that costs you money, immediately fix in your next contract. Rinse & repeat.
But, try to avoid ever falling-back on the contract. Clients find it combative & it can sour relationships.
Over-estimate time for delivery, so you can shatter their expectations. Also helps if problems occur, because blowing a deadline is disastrous.
Happy clients refer you & referrals mean success.
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Tip #7: Get a Board of AdvisorsYou & your partners are new to this - you need help to avoid costly mistakes.Avoid asking those you do business with - it will force them to choose one or the other.Use Linked-In, SCORE group, Vistage & others to help you connect. Meet people at conferences, like RISE or SXSW & court them.
3 to 5 members, each with a skill-set to advise a C-Level executive: Executive, Finance, Sales/Marketing, Technology and so on.Hold meetings once per quarter, provide food, then be honest & ready to implement their ideas.
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Tip #8: Trust your Partners Before Adding ThemA business partnership is like a marriage - you need to know who you’re getting into bed with, because your future is tied to them.
Make sure partners agree with your vision for the company, have the same ultimate desires for exit strategy and will follow you as leader.
If a partner isn’t pulling their weight, be willing to confront them. Dissonance in the Executive Team is palpable to all your employees.
Be constructive with your feedback. The better they can do their job, the better it is for your company.
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Tip #9: Only Give Ownership if You’re ReadyEmployee ownership can be great to get people excited & on-board, but be prepared
Expect employees to want to know the nitty-gritty of finances. You must strike a balance between what they should & shouldn’t know.
Management decisions which are normally unquestioned will be scrutinized. No matter how large or small an employee’s piece of the company is. Profit-sharing is a great alternative to direct equity ownership.
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Tip #10: A Happy Employee is a Better Employee, and it’s Usually Not About Money
Happy employees are productive employees.
Pay them what you can afford & raise it when you can, but money won’t always solve discontent.• Have One-on-One meetings with them directly• Organize Company Lunches w/ Show & Tells• Have an open-door policy for all departments• Encourage suggestions & implement them• Encourage vocal appreciation of one another• Don’t wait until problems appear - this is how you create a great corporate culture
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Tip #11: Don’t Waste Money on Fancy OfficesUnless you have limitless capital or a business that requires an impressive office & furniture, don’t spend valuable company resources on it.
Find a space that you can paint - and put up chalkboard walls or WhiteyBoards everywhere. This will encourage ideation & sharing, and is more affordable than stand-alone boards.Ikea is your friend. Get multi-purpose furniture, chairs, and lots of bookshelves so your people can arrange like they want to make it their own.
If the office layout isn’t working - change it!
Monday, May 20, 13
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Tip #12: Monthly Clients are your Best FriendsMonthly clients, who sign onto multiple-month contracts will help you get through hard-times.
Offer incentives - free product per X number of months, a better hourly rate, etc. to be more attractive.
Knowing you have income every month that you don’t have to re-sale can help ease concerns, and keeps cashflow moving like you need.
Monday, May 20, 13
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Tip #13: Always Multiply Dev Estimates X 3This applies mostly to technology companies, but if you have a product being made by a vendor, it applies to you as well.
Developers tend to quote the “Happy Path” unless you push them to really consider all of the pitfalls.
Problems will arise that no one can foresee. Something that is estimated to take 8 hours will take 24 instead. Don’t be left footing the bill.
Monday, May 20, 13
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Tip #14: Have an Online PresenceIn 2013, this probably goes without saying - but you need to have an online presence.
Don’t leave your online fate to Yelp or similar review sites - either build your site in-house or find a vendor to make it.
26% of web surfing happens on Mobile. Mobile customers buy quickly, whereas desktop customers can sometimes wait up to one week to decide. Make your site responsive!
Monday, May 20, 13
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Tip #15: You are the CEO. Act Like it!You are in charge. You are the keeper of the vision.
Your attitude, your opinions, even your small remarks have a huge impact on your employees.
Don’t be too afraid, or too shy, to make the Executive Decision. It’s in your title! You’re the chief!
When things get tough, keep up a positive attitude. Let employees know when you need them to buckle-down, but don’t overburden them with FUD (Fear, Uncertainty & Doubt). Stay positive!
Monday, May 20, 13
