There are pros and cons to consider when senior executives leave the corporate world to start a business, according to Glain Roberts-McCabe of leadership forum The Executive Roundtable. For example:
The Pros:
- When you've been at senior levels of management, you understand the fundamentals of how business works, including balance sheets, cash flow and so on.
- You possess knowledge of existing markets and the potential within those markets. You can recognize gaps that could be served with new products and services.
- You usually have a clear idea of the type of contacts you need to make and the type of people you need to hire.
The Cons
- Executives are typically more comfortable with delegating; the muscles needed for grunt work may have atrophied.
- As a strategic thinker you'll still have big ideas, but you may lack the dollars or personnel needed to execute them.
- Business networks are fickle. People who used to take your calls might not be so keen now that you're with a startup company. So salesmanship is likely to be job No. 1, even if you've never been in a sales role.
- You have to build your company's culture and infrastructure from scratch, usually without the guidance of a HR department.
- You may have to survive several lean, startup years without a salary while you pour all the revenue back into developing the business.