Startup Therapy

Latest Episodes:

When a $40M is More Than a $200M Exit Aug 28, 2023

Show notes

In today's Startup Therapy Podcast, Wil and Ryan discuss why a lower valuation exit can offer founders more advantageous financial outcomes than a higher valuation exit. This happens because of things like how much of the company's ownership each founder still has and what investors are expecting from their investments. As startups grow and get more funding, founders might end up owning less of the company. So even if an exit seems worth more on paper, the actual money each founder gets can be less due to having a smaller piece of the pie. Let’s delve into the maze of startup exits, exploring the delicate interplay between exit values, ownership, and the real-world implications.

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Resources:

Startup Therapy Podcast
https://www.startups.com/begin
Join our Network of Top Founders
Check in with us on LinkedIn | Wil Schroter | Ryan Rutan

What to Listen For

00:00 Intro
00:28 Navigating funding & exit strategies
05:59 Optionality
09:23 Outcomes can vary depending on the funding path chosen
13:46 Founder fatigue
17:53 What are preferences?
25:34 Protect your downside first

Don't Fear the Reaper (AI Edition) Aug 21, 2023

Show notes

In today's Startup Therapy Podcast, Wil and Ryan discuss why you shouldn’t fear the AI revolution that’s coming. Founders shouldn't fear changes in technology because embracing advancements can bring various advantages. These changes often lead to improved efficiency, streamlined processes, and better decision-making. Adapting to technological shifts enables founders to stay competitive, innovate, and explore new opportunities, ultimately fostering growth and success.

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https://www.startups.com/newsletter

Resources:

Startup Therapy Podcast
https://www.startups.com/begin
Join our Network of Top Founders
Check in with us on LinkedIn | Wil Schroter | Ryan Rutan

What to Listen For

00:00 Intro
01:44 Technology is always changing
03:51 What happens when a revolution comes around?
07:23 Why are we afraid of this?
12:12 Become better tool operators
17:40 Is displacement a bad thing?
24:57 Not embracing the future can destroy you
28:26 Be on the right side of change
30:57 Change is scary
33:25 AI taking decisions for us
38:06 Are people lazy by nature?
42:24 The negative effects of technology

Don't Let Investors Become Your Customers Aug 14, 2023

Show notes

In today's Startup Therapy Podcast, Wil and Ryan discuss why you shouldn’t let investors become your customers. When you prioritize investor demands over customer needs in pursuit of additional funding, you risk losing touch with your market's true requirements. This could lead to developing products or services that don't align with customer expectations, potentially resulting in poor adoption and revenue generation. Over time, prioritizing investor preferences over customer feedback could erode customer trust and loyalty, negatively impacting your long-term business sustainability.

Sign up for the Startups Newsletter

https://www.startups.com/newsletter

Resources:

Startup Therapy Podcast
https://www.startups.com/begin
Join our Network of Top Founders
Check in with us on LinkedIn | Wil Schroter | Ryan Rutan

What to Listen For

00:00 Intro
01:12 Optimizing for what investors want
02:13 Two types of investor feedback
03:47 Being in the capital raising business
04:53 What happens when you pitch to investors vs. provide to customers
06:10 “You’re just as vulnerable at the beginning of fundraising as you are at the end of fundraising…”
07:44 The investors don’t matter to the business
09:10 Jumping on trend for the money
16:37 Investors have a different game that they’re playing
18:15 Investor Optics vs. Customer Value
22:11 Navigating investor expectations and customer demands

We Can't Stay Out Of The Game For Too Long Aug 07, 2023

Show notes

In today's Startup Therapy Podcast, Wil and Ryan discuss what happens when founders stay out of the game for too long. Startup founders can't afford lengthy breaks from the game because the skills and mindset crucial for entrepreneurship can weaken over time. Startups demand ongoing learning and adaptability due to their rapid evolution. But here's the burning question: Can you still come back strong after a break, ready to tackle the dynamic challenges of the startup world?

Sign up for the Startups Newsletter

https://www.startups.com/newsletter

Resources:

Startup Therapy Podcast
https://www.startups.com/begin
Join our Network of Top Founders
Check in with us on LinkedIn | Wil Schroter | Ryan Rutan

What to Listen For

00:00 Intro
01:17 When you’re not relevant anymore
03:58 The startup muscle
05:54 Challenges in re-entering the game
08:27 The difference between taking a rest and quasi-retiring
10:08 Too soon or too late?
12:51 Relationships and relevancy
15:17 You lose relevance, relationships, and your mind
18:37 Pitfalls of taking a break
22:51 Don’t stay out of the game too long

What if our Dreams are an Illusion? Jul 31, 2023

Show notes

In today's Startup Therapy Podcast, Wil and Ryan discuss if your dreams as a founder is an illusion. The dream seems so valuable because it's something you don't have right now. But it's essential to play test your goals and ask yourself if you'd truly enjoy it once you achieve them. Sometimes, the journey and the process of pursuing a startup are more important than the final outcome, so it's crucial to think about whether the sacrifices are really worth it for your long-term happiness and sense of purpose.

Sign up for the Startups Newsletter

https://www.startups.com/newsletter

Resources:

Startup Therapy Podcast
https://www.startups.com/begin
Join our Network of Top Founders
Check in with us on LinkedIn | Wil Schroter | Ryan Rutan

What to Listen For

00:00 Intro
02:08 What if your startup dream is bullsh*t?
03:11 Investing in something uncertain
07:59 Did you test-drive it?
09:45 The cost of being wrong
19:33 Assessing risk in a startup
25:53 It’s valuable now because you don’t have it
27:48 Recalibrate your goals

What if this isn't a "Big Business"? Jul 24, 2023

Show notes

In today's Startup Therapy Podcast, Wil and Ryan discuss the topic of building a “big business”. Scaling rapidly can lead to market dominance and attract investors, but it also involves higher resource demands and potential pitfalls. On the other hand, building a profitable and sustainable business may allow for steady growth, reduced risks, and long-term viability. By reevaluating goals and priorities, founders may discover the benefits of a steady and enduring approach that aligns with their vision and values. So what’s it going to be? Are you going to go big or go home? Or are you going to go steady and go long?

Sign up for the Startups Newsletter

https://www.startups.com/newsletter

Resources:

Startup Therapy Podcast
https://www.startups.com/begin
Join our Network of Top Founders
Check in with us on LinkedIn | Wil Schroter | Ryan Rutan

What to Listen For

00:00 Intro
01:24 You don’t need to make a “big business”
06:13 Who is this big enough business for?
09:51 Building a profitable business is much easier to achieve
13:01 Focus on your actual goal
15:35 The path to freedom
19:23 When people belittle more money
24:02 Think about sustainability instead
26:23 The probability to build a big business is insanely small
28:23 Dimes vs. Dollars businesses
31:46 The dangers of aiming too high
34:01 Goals and metrics when it comes to scaling a business
40:13 Problem-solving and resource efficiency in startups
43:02 Stop pleasing investors

Founders, Not All Problems Are Apocalyptic Jul 17, 2023

Show notes

In today's Startup Therapy Podcast, Wil and Ryan discuss how all problems are not the end of the world for founders. While running a startup can be challenging and bring various obstacles, not every problem leads to failure or signifies the end. Startup founders often encounter a range of difficulties, including financial setbacks, operational hurdles, or competition. However, with resilience, adaptability, and problem-solving skills, founders can navigate these challenges, learn from them, and continue to grow their businesses. It's important for founders to maintain a positive mindset, seek support from mentors and networks, and view problems as opportunities for growth and improvement.

Sign up for the Startups Newsletter

https://www.startups.com/newsletter

Resources:

Startup Therapy Podcast
https://www.startups.com/begin
Join our Network of Top Founders
Check in with us on LinkedIn | Wil Schroter | Ryan Rutan

What to Listen For

00:00 Intro
00:38 Not all problems are apocalyptic
03:12 Startup problem vs. True “end of the world” problem
11:33 Externalizing the problem normalizes it
12:34 Why categorize your problems by levels?
15:53 Don’t overprioritize one problem and ignore the others
16:53 Stop making everything a level 10
20:40 You will never run out of problems
27:30 Time will come problems won’t even faze you

Stop Listening to Investors Jul 03, 2023

Show notes

In today's Startup Therapy Podcast, Wil and Ryan discuss why you should stop listening to investors. While investors can provide valuable insights and expertise, founders should exercise caution when relying too heavily on their advice. Investors often prioritize financial returns and short-term gains, whereas founders have a deep understanding of their vision and long-term goals. Over-reliance on investor advice may compromise the original vision and unique value proposition of the business, hindering its potential for growth and innovation. Founders should carefully evaluate and consider investor advice while staying true to their own vision and strategic direction.

Sign up for the Startups Newsletter

https://www.startups.com/newsletter

Resources:

Startup Therapy Podcast
https://www.startups.com/begin
Join our Network of Top Founders
Check in with us on LinkedIn | Wil Schroter | Ryan Rutan

What to Listen For

00:00 Intro
02:19 Investors are not fortune tellers
06:42 They just speculate everything
08:11 What one investor says doesn’t represent all the investors
09:13 Investing in a certain industry doesn’t make them an expert
10:31 Match their advice with their experience
12:45 If you want advice, go to experts
15:35 A well-intended advice can still derail you
16:27 Even if it’s a strong opinion, it doesn’t mean it’s right
21:20 Get a lot of feedback but consider the source
23:04 Checkbooks = writing checks, not giving advice
24:22 Investors can give bad assumptions, so don’t treat them like gospel
28:33 A positive feedback might actually mean “no”
30:09 Nobody can turn the wheel other than you

Can You Build a Startup in Less Than 40 Hours a Week? Jun 26, 2023

Show notes

In today's Startup Therapy Podcast, Wil and Ryan discuss if you can actually build a startup in less than 40 hours a week. Building a successful startup typically requires a significant investment of time and effort. While it's theoretically possible to work on a startup for less than 40 hours a week, it may significantly impact the chances of success. Building a startup is not just one job; it involves planning, research, product development, marketing, and networking. By committing more hours initially, founders can accelerate the growth and development of their startup, potentially leading to a point where they can work fewer hours in the future. Ultimately, the time invested in the early stages can significantly influence the trajectory and potential success of a startup.

Sign up for the Startups Newsletter

https://www.startups.com/newsletter

Resources:

Startup Therapy Podcast
https://www.startups.com/begin
Join our Network of Top Founders
Check in with us on LinkedIn | Wil Schroter | Ryan Rutan

What to Listen For

00:00 Intro
02:16 Time is the only resource you got
05:05 It’s now survival mode
06:21 Why would you start this if you don’t want to put yourself in completely?
08:15 Focus all your energy on one thing
09:25 In a startup, 40 hours is not enough
10:27 You can work less in the future if you work more now
13:43 Time commitment to the business
15:52 When things need to get done, they need to be done
18:43 It depends on how many people will get affected
20:03 It just needs to take time in the beginning
25:07 For startups, everything is variable
27:22 Experience is not a formula for success

Are Bootstrapped Startups Less Valuable Than Venture-Funded Startups? Jun 19, 2023

Show notes

In today's Startup Therapy Podcast, Wil and Ryan discuss whether bootstrapped startups are less valuable than venture-funded startups. The value of a startup isn't only determined by its funding source. While venture-funded startups may have more money and support initially, bootstrapped startups can still be valuable and successful. Bootstrapping often leads to efficient operations, as founders have to focus on making money and becoming profitable without relying on outside investments. In the end, the value of a startup depends on things like its potential in the market, how much it's growing, how well its product fits the market, and the skills of its team, regardless of how it's funded.

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