My co-founder isn't scaling our business

[help-me-nc]

I have a problem that is very much in my own making. Please be blunt in your advice.

We are a three-year-old company, and I am the technical co-founder. My co-founder is the sales co-founder. We share absolutely equal titles (co-founder) as well as equal equity. There are only 2 co-founders, and we have 10 employees.

We have taken on some investment through the years, and all of this funding came through my co-founder's personal network.

Our product is a data product/service that some companies use on a monthly basis, and others quarterly or yearly.

We do have product market fit, as much of our work comes by way of repeat business. However, we are not really growing, and it appears to be in my co-founder's inability to unplug himself and scale the business. Our customers rave about our work.

Nearly 100% of the marketing we're doing is still via linkedin. We do some paid marketing elsewhere, but mainly it works off linkedin advertising and personal reach-outs.

Our sales are holding us back from growing, and when I ask what the strategy is, I am accused of not trusting the process and making personal attacks on him. I will admit to reacting poorly in the past when we would fail to meet sales targets months in a row. I have added to the issue by being callous in my requests as to what is going on. To date, I still have not seen the strategy because it is in his head.

We have employees openly questioning if my cofounder is up to the task. In addition to this problem of not scaling, my co-founder also has a going concern where is a consultant. So while we have our incomes limited by his performance, he is able to bring in the money he likes through his other venture. This is creating alot of angst among our employees and I will admit being upset about it also.

A few weeks ago I had lunch with one of our investors and he asked me how many hours my co-founder is working in the business. I was not totally honest because I felt an obligation to protect my co-founder - but I also wanted to be straight with my investor, so I said I "I don't know. but I am sure it is alot". They have now stipulated our next tranche will include directives on hiring a sales leader for our company.

Our employees have openly asked me to take the lead and not have the dueling leadership. I quell these comments quickly as I am worried it will create a rift in the company. When I suggested this to my co-founder he admitted he does need help but was not willing to give up his authority (title) and the command that goes along with it.

When we suggest other ways to market or other things to do he says he loves our ideas and then he does not act upon them. When we try to put together our ideas for marketing and implement them he accuses us of ruining the strategy he's assembling.

All the while I am watching a company I co-founded barely scrape by.

I would love your thoughts on what I should do, if anything.

[curiousObject]

Your balanced and introspective summary makes me think that you’re probably being fair in your criticism and that there is a problem with your cofounder

There is a minor question I have: why do you need the company to grow? What does that achieve? Is it necessary?

[help-me-nc → curiousObject]

Thank you

The need (I feel) to grow has to do with a few things. We're in a market segment that most people think is about to die, but it's actually growing. So, we're in a good spot.

I also feel like I owe it to my investors who want this to grow quite a bit, and that is why they give us money is to grow.

Last, I feel like I owe it to the people who work here, as I firmly believe that if you're not growing you're dying.

[slackner → help-me-nc]

Based on the information in your post, I cannot judge whether it is actually necessary to grow in order to survive in the long term. If you want, feel free to share some more details, e.g. what industry you are in.

In any case, what is clear to me is that it is very damaging that you and your co-founder don't agree on how to proceed. I'm pretty sure your employees will have noticed the tension by now, and it will certainly have a negative effect on their performance. The main goal should be to resolve the argument as quickly as possible and decide either on growth, or staying a small business.

Does your co-founder not see the same need to grow? Does he prefer to keep the company small, and if yes, what are his arguments?

[PaulHoule → help-me-nc]

It is an ordinary thing for a company to grow its sales operation as the company grows. At some point you need to bring in salespeople, either juniors who follow the existing playbook or more senior people who know how to expand an organization, write a playbook, etc.

The title problem can be addressed by giving the co-founder a promotion in name since now they are the nominal head of the sales organization.

[sharemywin]

1. get him/her to agree to hire some else "for help"

different conversation:

2. get them to agree it should be the best person you can afford.

3. get him/her to agree you both need to agree on the person. or use the investor as a tie breaker.

4. start a search.

[help-me-nc → sharemywin]

Thank you