Even Elon Musk would Benefit from This Unexpected Startup Advice

CEOs: do you know when to hire your replacement?

Even after spending years in the startup and cryptocurrency space in San Francisco, the most startling and obvious advice I received about entrepreneurship was given to me by a founder in Tampa Bay. And when I moved to SF, I realized that no one was following his principle:

“There are two types of founders, the business builders and the serial entrepreneurs.”

It was Tampa Bay WaVE’s mentor speed dating day. Although I had already come to greatly admire the startup hub, even joining its ranks with the fitness app I’d founded, I really wasn’t emotionally prepared for the great advice handed to me.

The business builders know their industry, have identified an under-served niche and build a company around serving that niche better than anyone. They bring experience and professionalism to the table and become great company leaders as their corporation grows.

The mentor grinned ruefully.

Now, I’ve learned, I’m not that type of founder. I like the excitement of starting something new. And I now know, from experience, that my exit point is that 10th employee and the hiring of an HR department.

So my 9th hire is always the new CEO.

Although I was pretty new to startups at that point, my father had navigated the choppy waters of the first dot-com startup craze. And I remembered the antics of his founder-bosses: the splurges on pool tables, the vague promises of vaporware never delivered, the lack of social skills in selling situations, the expectations of 60 hour weeks from employees only looking to bring home a paycheck.

This instantly clicked for me.

But it doesn’t for many of the very best founders.

Elon Musk is undoubtedly a serial entrepreneur. Even if he still only had one startup behind him, it would be evident in his unceasing zeal, dreamer mentality, and lack of finesse for long-term, mundane business matters.

And yet Elon Musk remains at the helm of FOUR of his startups today.

I’m not a PayPal founder and I have yet to start a Tesla-valued company. So it wouldn’t be fair for me to suggest that I know that man needs more sleep. But Elon, if you ever feel the need to slow your pace a bit, consider giving Tampa Bay WaVE a call — they’ve got you.

(j/k)

(but really.)

And for those of us still trying to found something great? Decide what type of founder you are, and plan ahead.