Podcast Summary: MBA2493 How to Find a CTO or Technical Co-Founder
Podcast: The $100 MBA Show
Host: Omar Zenhom
Episode Title: MBA2493 How to Find a CTO or Technical Co-Founder
Release Date: July 12, 2024
Introduction
In episode MBA2493 of The $100 MBA Show, host Omar Zenhom delves into one of the most critical challenges faced by non-technical entrepreneurs: finding a Chief Technical Officer (CTO) or a technical co-founder. Drawing from his extensive 20+ years of entrepreneurial experience and his journey in building and selling a multi-million dollar software company, Webinar Ninja, Omar provides actionable strategies to secure the right technical partner for a SaaS (Software as a Service) business.
Understanding the Challenge
Omar begins by addressing the common predicament of non-technical founders who possess a solid business idea and market understanding but lack the technical expertise to bring their vision to life. He emphasizes that finding a CTO is akin to finding a life partner due to the high stakes and the significant investment of time, money, and energy required.
“Trying to find somebody to go into business with or to be responsible for something majorly part of the success of the business... is like finding a partner in life.”
[01:25]
Strategy 1: Hiring a Senior Executive from a Successful Company
The first strategy Omar recommends is targeting senior technical executives from well-established companies who might be seeking new challenges. These individuals typically have extensive experience, having moved up the ranks over the years, and possess the expertise needed to lead a technical team.
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Profile to Look For:
- Senior executives such as Head of Engineering or Lead Engineers.
- Professionals with a decade or more of experience.
- Individuals feeling constrained by corporate red tape and seeking more dynamic opportunities.
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Approach:
- Offer equity or shares as compensation, especially if budget constraints prevent offering competitive salaries.
- Consider hiring part-time advisors initially to assess fit before committing to a full-time role.
Omar shares his personal experience of hiring a highly skilled CTO on platforms like Upwork, paying premium rates to secure top-tier talent who could contribute significantly even on a part-time basis.
“Generally you get what you pay for. And it’s going to cost you more time and aggravation than it’s worth to try to find that diamond in the rough.”
[06:50]
Strategy 2: Leveraging Networking Opportunities
The second approach focuses on expanding and utilizing one’s professional network to find potential CTOs or technical co-founders.
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Methods:
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Conferences: Attending industry-specific conferences such as MicroConf or SaaS-focused events. These gatherings are fertile grounds for meeting experienced technical professionals seeking new ventures.
“One of the fastest ways to find a technical co-founder or a CTO is to just go to a SaaS conference.”
[12:10] -
Online Platforms: Engaging with technical talent on social media platforms like Twitter (referred to as "X") by interacting with their content, initiating conversations, and building relationships virtually.
Omar cites the example of Ali and Wilson from Senja IO, who successfully built their business partnership entirely online.
“They met each other on X. Ollie’s the marketer and the sales guy. Wilson is the engineer and the developer...”
[10:30]
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Benefits:
- Building a robust network increases the chances of finding a compatible technical partner.
- Even if a direct partnership doesn’t materialize, connections can lead to referrals and introductions to other potential candidates.
Strategy 3: Promoting from Within the Organization
The third strategy involves identifying and nurturing existing talent within one’s own team to step into the CTO role.
- Steps:
- Identify Potential Leaders: Look for developers or engineers who have demonstrated leadership qualities and a deep understanding of the product.
- Provide Opportunities: Offer them roles that allow them to take on more responsibility, such as leading projects or making technical decisions.
- Support Growth: Invest in their professional development to equip them with the necessary leadership skills.
Omar shares how his last CTO was an internal team member who naturally evolved into the role through demonstrated reliability and technical prowess.
“Maybe they needed a little coaching on your side when it comes to the leadership part of things, but they’re very solid from a technical point of view...”
[20:15]
Key Insights and Takeaways
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Proactive Networking is Essential: Waiting for the perfect CTO to find you is unrealistic. Active participation in both physical and online networking events exponentially increases the chances of meeting suitable candidates.
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Quality Over Quantity: Investing in highly experienced technical professionals, even at a higher cost, can lead to better long-term outcomes than trying to hire less experienced talent.
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Leverage Existing Team Members: Often, the ideal CTO may already be within your organization. Providing growth opportunities can foster loyalty and ensure alignment with the company’s vision.
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Flexibility in Compensation: Offering equity or flexible working arrangements can attract top-tier technical talent who are motivated by the potential for growth and ownership rather than just salary.
Notable Quotes with Timestamps
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On the Importance of Recruitment:
“Your job as the founder is basically recruitment is to be a super recruiter. Finding the best people to build your baby, to build your dream business...”
[29:45] -
On Networking Efforts:
“You gotta make an effort. You can’t just sit in your home office and they're just going to stumble upon you by chance.”
[03:30] -
On Hiring the Right Talent:
“Generally you get what you pay for. And it's going to cost you more time and aggravation than it's worth to try to find that diamond in the rough.”
[06:50] -
On Internal Promotion:
“Sometimes people are right under your nose. They just need to be offered a position so they can flourish.”
[18:25]
Conclusion
Omar Zenhom wraps up the episode by reiterating the paramount importance of effective recruitment in building a successful SaaS business. He encourages founders to remain vigilant and proactive in their search for technical talent, emphasizing that the right team can be the decisive factor in outperforming competitors.
“The best team always wins. That's your differentiator between your competition, the people that are behind the product.”
[28:10]
He also highlights the value of flexibility in hiring and the potential of nurturing existing team members to step into leadership roles. Omar’s pragmatic approach offers a roadmap for non-technical entrepreneurs to bridge the technical gap and steer their ventures toward success.
Learn More:
For additional resources and insights from Omar Zenhom, visit The $100 MBA Show.