After being an entrepreneur and working with over 1,000 entrepreneurs over 40+ years I would like to draw a distinction between those who invent products or services, those who form legal entities, and those who truly found successful businesses.
An inventor who creates a product that solves a real problem is a successful inventor. That same inventor can form a legal entity from which said inventor could provide the product created. At that point both inventing and forming have taken place. But to truly found a business means someone laid the foundation for a solid business direction with the product(s) or services that were invented. Founding requires inventing and forming to take place, but also requires an understanding of the market opportunity, the ability to build an effective business model and plan around it, and the ability to execute that plan.
Most start-up businesses are formed by entrepreneurs that have solved a problem. And most such start-ups fail to reach their five-year anniversary because inventing and forming are not enough. Those that succeed are those that engage business experience in balance with the opportunity generated. This requires that inventors understand their own strengths and shortcomings, and build the missing components into their team. If they do this, their chances of success are increased. If they fail to do this, their odds of failure increase as well.
I was fortunate to have lived this experience personally with a highly successful business in the 90’s. My partner, whom most called the founder, solved a real-world problem for a single regional business in a manner that allowed him to form a company and generate good initial sales revenue. To his credit, he recognized his own skills and shortcomings and because he and I had worked in a previous business together, where I drove business development, and we had developed mutual respect accordingly, he asked me to engage to develop a clear business model and plan.
Working together we built a highly successful business that developed a strong global brand and today employs well over 200 people. Arguably we “founded” the business together, leaning on each other’s strengths. Without both sets of strengths and related experience the business would never have reached the level of success generated. If you are an inventing “founder,” seek out a business savvy “co-founder” and build success together. Don’t get caught up in terms and titles, get caught up in success. Successful businesses provide opportunity and reward for employees, their families, and their communities and that is the true reward of effective “founding.”
