431: Many Heads, Not Many Hats: The Founder's Identity Crisis

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The Bootstrapped Founder 15 min 1 speaker 8 chapters transcribed 24 days ago
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Why does the founder metaphor shift from “many hats” to “many heads”?

Arvid Kahl 0:00
Hey, it's Arvid, and this is Taboots our founder.
Arvid Kahl 0:09
Now we often joke in entrepreneurship about founders having to wear many hats. But I think the metaphor is wrong, at least from my own experience. It's not about swapping hats, it's often about growing entirely new heads. Not just the cover of the head, the head itself. A new brain is needed that thinks different and speaks different and prioritizes different. And somehow these heads are all attached. Attached to the same body. It's less of a Mad Hatter situation and more of a Medusa situation. Multiple perspectives, multiple personalities, and everything is just trying to navigate a world that treats each one differently. So I was on a consulting call recently, and that's where the idea came from. I got into this topic of focus shifting and dealing with multiple projects.
Arvid Kahl 0:55
The founder I was talking to was struggling with something that I see all the time. And have experienced myself, they were migrating from a successful consulting practice into building a software business. And nothing was working the way they expected. The focus was off, the priorities felt wrong, and despite having years of professional success behind them, they felt like they were starting from scratch. And maybe even worse, because their instincts kept leading them astray. And this is a situation a lot of Founders find themselves in. You're coming from a salaried position or from freelance work or maybe you've been running a small agency with a low headcount, something personal, something you've built relationships around, and now you're trying to build a software business.
Arvid Kahl 1:37
And that is a completely different animal, and nobody tells you. So we'll dive into that today. Here now, a quick word from our sponsor, paddle.com.

What makes the move from consulting/agency work to SaaS so disorienting for founders?

Arvid Kahl 1:47
I use them as my merchant of record for all my software businesses. And even though they are all different animals, Paddle serves them well. They take care of all the taxes, the currencies, transactions, updated credit cards, all of that. So I can focus on dealing with my own business. So if you would rather just build your own thing instead of dealing with banks and financial regulators, Go check out paddle.com as your Merchant of Record payment provider. Now, here's what I've come to understand about this transition that these founders have been experiencing. One of the biggest threats to the success of a new software business is the encumbrance with parts of the old one. And I don't just mean like time commitments or scheduling conflicts, that happens too, but I mean the mental models, the assumptions, the instincts that served you so well before.
Arvid Kahl 2:36
They might be actively working against you now, running or trying to run a SaaS. The very things that made you successful in your previous career could actually be preventing success in this new one. So let's talk about one of the big ones. That's urgency and immediacy. It's something that, particularly when you work on a low-touch, highly automated software as a service business, it comes at a completely different time and in a completely different shape than what you're used to. When you're freelancing or you're consulting and your client has a problem, this tends to A big issue because it is right, it is a real thing, no matter what it is. As long as they don't express a problem, you're doing okay, you're doing all right.
Arvid Kahl 3:14
But the moment something goes wrong, the urgency and immediacy of these problems is palpable for both parties, and it often self-amplifies when you interact with a customer. Because when a client tells you something is wrong, you promise to fix it, and you talk with them, and it becomes a high priority, and there's back and forth and things kind of either escalate in a good or in a bad way, but urgency causes more urgency. Why? Well because you have so few clients, or at least you tend to if you work in a freelancing position. Retaining any one of them is probably the most important customer success mission that you might have.

How does urgency and immediacy differ between client‑based consulting and low‑touch SaaS?

Arvid Kahl 3:48
So when you have five or ten people paying you a couple thousand dollars a month, acquisition all of a sudden is not even required anymore unless you have churn.

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