Back in my VC days we ran the FounderFuel accelerator. Our program was blessed with many strong mentors. We regularly brought mentors and companies together.
While this was all good, often the founders would complain of “mentor whiplash”. Mentors would have conflicting advice for these founders.
I see similar issues with more established companies when it comes to their boards. Often they turn to their board for advice. And often, individual board members have different advice. What are you supposed to do? Especially if the conflicting advice comes from investors that made big bets on you.
Founders often ask me whether they should be asking for stock options in their own company. Some of them feel sheepish for asking. Some feel entitled. There’s no one right way to think about founder incentive compensation, but here’s how I have approached it over the years.
I was with one of our e-commerce CEOs yesterday when I heard this one liner: “Retail is detail”. So simple, but so true.
All businesses involve detail, but retail e-commerce stands out. When you operate with the margins that come from selling goods vs. selling software you have to get things right.
Most commerce businesses are horizontal in nature: reselling goods made by others. These business have low gross margins. The only way to make them work is at massive scale. This is why Zappos was not profitable despite having $1B in sales at the time of it’s exit. The most extreme example of this is Amazon (who bought Zappos). They reached truly massive scale before turning one penny of profit.Continue reading Retail is detail
Venturebeat declared in an article yesterday that “The CFO is dead, long live the COO”. The premise of this piece, written by a CFO, was that today’s CFOs are intimately involved in growing their businesses. Rather, than just reporting on historical results, they are a key partner working across the company to promote better strategies and decisions, leveraging current, real time data, not just histocial financials.
All of this is true, but there is a big difference in my books between an actual COO and a CFO who happens to be adding value across the business. The COO is ACCOUNTABLE for those results. She will have P/L responsibility and will be managing a large team that is directly tasked with delivering those results.