Is It a Right Move to Take a VP of Marketing as a Co-Founder in a Pre-Revenue Startup?

The Role of Marketing in a Pre-Revenue Startup

If you don’t have revenue, how can you have a VP of marketing? Does this make the role of a VP of marketing unnecessary for a pre-revenue startup? In this context, we explore the challenges and considerations of appointing a VP of marketing as a co-founder and how it may affect the future of your startup.

Understanding the Nature of a Pre-Revenue Startup

A pre-revenue startup is a unique phase where the focus is primarily on product development, user acquisition, and customer validation rather than extensive marketing and sales efforts. Pre-revenue means either that you have nothing to sell, or whatever you are selling has yet to capture market attention or buy-in. In this early stage, the primary functions of marketing and sales are likely not prioritized or optimized for immediate impact.

The Evolution of Leadership Roles

VP positions generally lie between senior staff and junior management, often scaling up from $1 million in yearly sales to $10 million, and eventually to $100 million. At this early stage, the need for specialized positions like a VP of marketing might not be entirely necessary. The focus is more on building a solid foundation and developing a viable business model.

The Risks and Benefits of Having a Marketing Co-Founder

On the other hand, if you can attract a co-founder with a great understanding of marketing and advertising, it might be a strategic fit. However, this co-founder needs to possess at least as strong 'cofounder' skills as marketing skills. This balance is crucial as both marketing and business acumen are essential in navigating the early stages of a startup. Calling a founding partner a VP of marketing, especially when they are expected to hire a separate head of marketing, can set them up for failure.

In many cases, true co-founders act as full principals of the business. Leaving a co-founder in a junior or semi-management position, especially one not aligned with their value and contributions, can lead to dissatisfaction, turnover, or poor performance.

Solving the Ego-Related and Organizational Title Dilemma

The pressure to satisfy ego-driven needs for titles can be detrimental. As a seasoned professional, the overriding goal should be to create a viable business, not just to assign impressive job titles. Startups often face the challenge of defining roles and responsibilities early on, and this can impact future organizational structures.

The suggestion is to start with broad job titles like Director (e.g., Director of Business Development) and leave room for adjustments and promotions as the business grows. This approach helps avoid rigid organizational structures and focuses on results.

In summary, while it might be tempting to assign the title of VP of Marketing to a co-founder, especially in a pre-revenue startup, the practicality and long-term viability of this role need careful consideration. It is often better to prioritize building a solid business foundation and maintaining a flexibility in organizational roles as the startup grows.

Conclusion

The decision to make a VP of Marketing a co-founder in a pre-revenue startup requires careful thought. Aligning the co-founder's role with their skills and the startup's needs, while keeping a flexible organizational structure, is key. The goal should always be to build a sustainable, high-performing business, rather than to satisfy immediate ego-related or organizational needs.