Four Questions to Ask Before Starting a Tech Company

The founder mythology, popularized by television, movies and books, has made starting a company a romantic proposition for many. But for every Mark Zuckerberg, Steve Jobs or Jeff Bezos, there are hundreds if not thousands of eager, smart entrepreneurs who fail.

This is not meant to discourage anyone. It is meant, however, to ensure that you ask yourself a few questions before starting a new company. 

Why am I Doing This? 
Motivational speaker and retired Navy Seal David Goggins has finished multiple ultra-marathons and, for a time, owned the Guinness World Record for most pull-ups in 24 hours: 4,321. Before he ever chases a goal, however, Goggins knows that he better have a convincing answer to one question: Why am I doing this?

To accomplish the above feats, Goggins had to go through pain. In the depths of that pain, you cannot lie to yourself. You have to truly believe your answer. 

The startup journey is not for the faint of heart. There is a good chance that you are going to fail. There are a lot of easier ways to make money and make a living. Before you even take your first step on this path, make sure you’re asking yourself that question. And make sure you give yourself the proper time to find an answer. Because that answer is going to be tested again and again. 

What are Your Strengths and Weaknesses?
To start your own company, you need a certain level of self-confidence. To grow your own company, you need a certain level of humility.

In the early days, a founder wears many hats. He or she must do literally everything. This can be fun, and it can be exhausting. It is also not scalable, because you never want to have a single point of failure. As you grow, which is usually the point of a business, you will need to delegate your responsibilities to other people.

Many founders struggle with this by holding on too tight. This is not healthy for the individual or the business. Understanding what you’re good at, while also knowing where you’re limited, will make this delegation easier. Even before that, it may make it easier to find a co-founder who has skills that complement your weaknesses. Admitting you’re weak in an area and finding someone who has a strength there is not a weakness at all. It is the sign of a savvy entrepreneur who is preparing to succeed. 

What Motivates You?
There is a certain level of euphoria when you start a new company. Taking that metaphorical leap can be exhilarating. But there is also a popular term in startup lingo called the “pit of despair.” This is the moment when that passion fades and you are smacked in the face with the realization that this is hard.  

When you find yourself in the pit of despair, you’re going to need some help. It is totally natural. It is why Peloton instructors are so popular: We all need a little motivation. This is why it is important to ask yourself: What motivates you? 

The answer to this question is different for everyone. Some people are motivated by money, others by impact, while yet others are motivated by power or their families or a whole host of other things.

Knowing what motivates you is important for three reasons:

1. It will provide you a reservoir of untapped potential that you can call on when needed. Remembering that you’re doing something for more than yourself can give you an extra kick when you might otherwise have thrown in the towel. 
2. No founder is going to be successful alone. He or she is going to need a team. Knowing what motivates you might also inspire you to stop and ask, what motivates my team? Again, everyone is different. But understanding those differences will allow you to help your team succeed. And that can be the difference between success and failure.
3. Knowing what motivates you is going to dictate your answer to the next question.

What Kind of Company are You Building?
There are different types of companies. A lifestyle business, for example, is considered a company that is growing but not at an overly rapid pace. The goal of this company is to provide a strong quality of life for its founder and employees. There are many positives to this type of business, but it usually doesn’t create tremendous enterprise value. A venture-backed company, on the other hand, has the goal of achieving massive scale, which raises its overall value.

The question here essentially comes down to this: Do you want a smaller piece of a much bigger pie, or a larger piece of a smaller pie?

The answer probably depends on what motivates you. It is an important answer, though, because it changes the way you build a company. Many lifestyle companies can get off the ground with minimal investment, which preserves the founder’s ownership. A hyperscale company often needs additional capital, which means the founder must fundraise, which dilutes his or her ownership. 

Again, there is no wrong answer if you think about this and make an informed decision. Too many times founders are raising capital even though they’re not 100% sure why. 

Someone who is willing to start a company is usually hardworking and ambitious. Many founders have done their research. They understand the startup vernacular and the playbooks for a successful company. 

That is all very important. But perhaps a more important area—one they are spending much less time exploring—is themselves. That’s the best advice I can give to a new entrepreneur just starting out: Know yourself. 

Dr. Julie Gurner, a legendary performance coach, has worked with some of the world’s most successful executives. She says that most leaders do not fail because of external factors but because of internal factors. 

If you are first able to navigate yourself—know your strengths, your weaknesses, why you’re doing something, what motivates you and have a clear vision for what you’re trying to accomplish—then you’ll be prepared for all of the challenges that come with running a business. And even more than being prepared, you might just enjoy solving them. 

And if you do that, then no matter the outcome of your business, it will have been a success.

Adam Coughlin is chief marketing officer of York IE, an investment and operating company in Manchester, and a board member for the NH Tech Alliance and co-chair of its Startup Committee. He can be reached through linkedin.com/in/adamcoughlin/.