Welcome to Day 9 of 12 Days of Experts! This month, we’re showcasing 12 carefully chosen articles penned by industry experts and thought leaders. These pieces offer a broader view of marketing, business, and leadership. We trust you’ll find value in these perspectives from beyond the nexus-security realm. Dharmesh is a daring and ambitious entrepreneur whom I hold in high regard and admire deeply. He’s also a dear friend who has imparted invaluable wisdom about launching and growing a successful startup. It’s an honor to present Dharmesh’s insightful advice in today’s installment of nexus-security’s #12experts series. – Larry
Common Startup Questions, Answered Candidly by Dharmesh Shah, Founder and CTO of HubSpot
My company, HubSpot, went public on the New York Stock Exchange [NYSE:HUBS] on October 9, 2014. It was an exhilarating and demanding journey. The picture above captures the moment I showed my co-founder, Brian Halligan, the HubSpot stock price on my iPhone. Now that things have settled down a bit (at least, to what I consider normal), I’ve had the opportunity to ponder some early takeaways. I’m a startup enthusiast who’s been immersed in startup marketing and entrepreneurship for over a decade. I also contribute to a well-received blog (OnStartups.com) with a readership exceeding 400,000. I’m deeply passionate about the startup world. I’m constantly engaging with entrepreneurs. One of my favorite activities is conversing with budding entrepreneurs who are either contemplating starting a company or have recently taken the plunge. I recently had the pleasure of teaching a class at MIT called “Founders Journey.” This course attracts students from various disciplines at MIT who share a common interest in entrepreneurship. I’ve been leading a session for Founders Journey students for 11 consecutive semesters, spanning over 5 years. Here are some frequently asked questions I receive from these aspiring entrepreneurs. A word of caution: I hold strong, often unconventional opinions.
Q: Is a co-founder necessary to launch a business?
A: Absolutely. Technically, a co-founder isn’t mandatory, but I highly recommend finding one. Let me explain why. 1. Startups are incredibly demanding. Having someone by your side, conquering the challenges together, is invaluable. While you could theoretically hire someone instead of bringing them on as a co-founder, the dynamic changes significantly. You need more than someone to delegate tasks to; you need someone to engage in thoughtful debates with, someone who challenges you to make sound decisions, someone who ideally shares your motivations. 2. The startup journey can be quite isolating. Most startups experience both triumphs and setbacks. The highs can be exhilarating, and the lows can be disheartening, often within the same day! Having a partner to share these experiences with, through thick and thin, is incredibly beneficial. Just like in life, celebrations are more meaningful when shared. 3. Co-founders can bridge the gap in skills and expertise that you may lack. Take HubSpot, for instance. My co-founder, Brian Halligan, possesses a strong sales and finance acumen. He excels in those areas. My passion lies in technology and product development. Consequently, our skills complement each other perfectly. More importantly, we share a common set of values. We are aligned on the type of company we aspire to build and the culture we want to foster. Consider all the skills essential for launching and running a business: technical prowess, leadership, financial management, sales, marketing, operations, and so on. How many individuals possess exceptional abilities in all these areas? Very few. Having one or more co-founders creates a more well-rounded team with a diverse skill set. Here’s a more critical question: Can you realistically dedicate the time required to become even moderately proficient in all these areas? Seek a co-founder whose skills complement your own, where the combined effort is greater than the sum of its parts. The shared responsibility will also push you to work harder, as you won’t want to disappoint your partner.
Q: Should I pursue venture capital?
Eventually, it might be necessary, but in the early stages, it’s not advisable. Securing venture capital (institutional funding) is incredibly challenging, particularly for first-time entrepreneurs. In the tech industry, investors generally expect a certain level of “traction” before investing millions. Focusing on developing your business as much as possible is typically more beneficial. This includes creating a prototype or an early version of your product and validating the market (gaining some users/customers) before seeking funding. Understanding the dynamics of the VC industry is crucial. Venture capitalists make a very limited number of investments from the hundreds (or thousands) they review annually. Therefore, it’s not simply about having a fantastic idea; it needs to be a more attractive investment opportunity compared to others they’re evaluating. Many entrepreneurs make the mistake of prioritizing pitching to investors as their first step. That’s not the most effective approach. It’s recommended to have made some progress on your idea (and potentially iterated and refined it a few times) before seeking funding from a VC.
Q: Is relocating to a major startup hub (like San Francisco, Boston, or New York) essential?
Not necessarily… but it can be advantageous, depending on the nature of your business. Numerous exceptional companies, including tech-based ones, have been established outside major startup ecosystems. There are highly successful businesses operating in Georgia, Illinois, Texas, Utah, Colorado – all across the nation. Amazon, for example, was founded in Bellevue, Washington – a fantastic city, but not recognized as a tech hub at the time. So, success is attainable outside established ecosystems, but certain aspects will be more challenging. If your company relies on venture capital for growth, your chances of securing funding increase significantly if you’re located in a region with a concentration of venture capitalists. While VCs do invest in companies outside their base, their numbers are limited, reducing the odds. Think of it like opening a restaurant. A prime location guarantees a certain level of foot traffic. In contrast, a less desirable location requires your restaurant to become a destination – a place people actively seek out. Achieving that level of recognition, as a restaurant or an employer, is no easy feat. Would HubSpot have achieved the same level of success if we weren’t situated in Boston? I’m grateful we didn’t have to find out. We’re surrounded by world-class educational institutions, a thriving tech community, and an active investor network. These factors have undoubtedly contributed to our success. Many wonder if we could have achieved even greater heights if we were based in San Francisco. Honestly, I can’t say for sure. However, my intuition tells me – probably not. My co-founder and I have long-standing ties to Boston, having attended graduate school here (where we first met) and established strong networks. These connections have proven invaluable. Building a business presents enough challenges without intentionally adding more. If relocating to a particular area can alleviate some obstacles and enhance your chances of success, I strongly encourage you to consider it, if feasible.
Q: I have a brilliant idea. Should I be concerned about sharing it? What if someone steals it?
A friend once remarked that the hallmark of an inexperienced entrepreneur is an excessive preoccupation with secrecy. Why? Ideas hold value, but execution is paramount. Take GrubHub, for instance. Do you believe they were the first to envision aggregating takeout deliveries for local restaurants? Of course not – the difference lies in their execution. The same principle applies to numerous businesses. It’s not solely about the idea; it’s about the team and their ability to bring it to life. (This is why my angel investments prioritize the team over the idea. I understand that ideas evolve, so I bet on people.) Obsessively guarding your idea only hinders progress. You limit input, advice, collaboration, and opportunities for critical thinking and partnership building. You miss out on identifying potential and even supportive customers. Everything becomes significantly more difficult. While paranoia is natural, don’t let the fear of idea theft paralyze you. In reality, it’s highly unlikely. Never ask an investor to sign an NDA (Non-Disclosure Agreement). Not only will they refuse, but it might also raise doubts about your business acumen.
Q: I have a fantastic idea. Should I forgo college and dive into it now?
No. Stay in school. Complete your degree. Time is on your side; you have a solid 30 to 40 years to build a company. Your idea can wait; while being first is advantageous, being the best is what truly sets companies apart. You can build your network and even connect with future co-founders and team members during your time in college. And who knows, you might even acquire some valuable knowledge along the way. Ultimately, business is only one aspect of life. View college as an opportunity to build a solid foundation, not just for your company, but for your life as a whole. It’s a time to gain knowledge, insights, and skills; to cultivate relationships with partners, friends, and future colleagues; to explore passions, ideas, and personal growth. In essence, college equips you with the tools to become a better entrepreneur and a well-rounded individual.
Q: Everyone emphasizes the importance of culture, but we’re a startup. Should we really be preoccupied with it at this stage?
Absolutely. While it doesn’t require countless hours of deliberation, dedicating some time to defining the type of company you envision is crucial. Every company – every group of people – develops a culture. You can either attempt to create the culture for a company you love… or allow it to evolve organically and hope for the best. (Spoiler alert: it won’t). One common trait among successful companies is their distinct culture. Remarkably successful companies tend to have unique cultures. The most successful companies are intentional about their culture, carefully crafting and safeguarding it. [
](https://linkedin.com/channels/entrepreneurship?trk=prod-inf-startupstory-1114-inpostpromo)So So, what kind of culture should you cultivate and nurture? In a way, the specific answer is irrelevant. You might choose to be radically transparent or adopt a more hierarchical approach. You might prioritize design or something else entirely. The key is to focus on what you genuinely love. Why? Because your goal should be to build a company that both you and your team are passionate about. This begins with fostering a culture built on genuine, authentic, and deeply held beliefs that what you’re doing, and more importantly, how you’re doing it, is right. Therefore, start thinking about culture from the outset, and ensure you’re creating the culture you genuinely desire, not the one you believe you should have. For more insights on culture, I recommend checking out the HubSpot Culture Code deck (available below). It outlines our perspective on culture and might inspire you as you shape your own company culture. Dharmesh Shah initially published this article on LinkedIn. It is reprinted here with the author’s permission.