TechCrunch Meltdown: 3 Lessons for Entrepreneurs
The continuing drama fest at TechCrunch (AOL) has made great humor fodder for Dan Lyons of Not Steve Jobs fame. But not-so-internally to the site, the story has become even more ugly, which is saying something. Part-time blogger Paul Carr resigned in a post on the blog itself, attacking new editor-in-chief Erick Schonfeld, who slapped him down in return. MG Siegler and Robin Wauters both weighed in on their own blogs.
Although some of the TechCrunch writers think that the whole tech media world is luxuriating in schadenfreude, it's not. Most are just laughing. The only real reason this entire episode is worth paying attention to at all -- beyond its amusement quotient, that is -- is that it has some important lessons for entrepreneurs.
You pay for the money
Entrepreneurs, especially ones new to starting businesses, are devoted to their babies. They work to make their mark and not just for the money. And that's good. Passion helps drive a willingness to go the distance necessary to see their dreams come to fruition.
But they're also human. They want to feel financially secure. Few things like starting your own business make you feel the sting of self-induced penury. And it's hard not to notice that more -- more money, more backing, more people -- could make the difference between success and Success.
Given the time and money it can take to go public, many entrepreneurs agree to sell out. That's what TechCrunch did, although it also got a promise of operational independence, which is almost unheard of in business.
But independence has its limits. After a buyout, you report to someone else. It's the price you pay for access to the resources of your acquirer and the money it paid you and your investors. If you cannot bear the thought of having to take orders, don't sell. You'll still take orders, though -- the orders that come from the strategy necessary to keep the business going. And from your investors. Yeah, it's a pain, but that's adulthood.
Get over yourself
Entrepreneurs, and those that work for their start-ups, need healthy egos. You're trying to bring something into existence while getting people to like it (and you) enough to pay money for what you offer. That takes a fair amount of nerve.
But nerve unchecked by humility is foolish arrogance. You start believing your own press releases and then assume that everyone else should, as well. That's a big mistake.
No one really needs your business. If Apple (AAPL) disappeared from the face of the Earth today, the world would continue spinning. If that's true for one of the most influential companies, molded by a true business icon, do you think your young company will be any different?
Thinking you're all that and then some is destructive. It diverts your attention from problems that will otherwise blindside you. You lose respect for competitors who may be far better than you in many ways and from whom you could learn something valuable. You develop a juvenile need to have someone hold your hand and coo praises into your ear.
There's no room for that as part of a bigger company. Siegler fatuously wondered why no one at AOL had tried to contact him. Uh, why should they? The managers at TechCrunch are part of AOL.
And if there's something specific you feel that you need and you're not getting it, why not pick up a phone and find out who to contact? Waiting for the CEO or divisional vice-president to drop by to make sure you're tucked in and have your milk and cookies is a little silly. Especially if you've managed to pull off a promise of independence, in which case you're already said that you don't want to hear from the mother ship.
If you've agreed to work at MegaCorp, then act the part and make it work for you. If you can't, go find or start something else. But forget the complaining or acting out. No one cares. Not even your mom, as she has her own problems to deal with.
Hey, guys, watch the women
Why is all the teeth gnashing and belly button lint examination being done by the males on staff? I thought that Alexia Tsotsis (who is not above public AOL bashing and outraged hand-wringing herself) had the best non-comment comment:
Um, oh hey guys, what's up? Nothing much over on my side, except that I'd really like a Diet Coke. Also, I'm hearing that nascent photo sharing app née blogging platform Posterous is raising some money.She's trying to get work done and seems to think that the whole conflict is a waste of time. A hint: if what is going on seems odd to most of the people around you, it probably is.
There's a collection of some Twitter conversation on the subject by women media experts who think that a woman would generally have avoided the public hand-wringing because she'd have been blasted -- and that it's an issue of business in general, not just media.
Do women face different expectations than men? Sure, and the women who took part in the Twitter exchange said that a woman would never get away with what the various male TechCrunch battling scribes did.
But I think they over-estimate the support that a Carr, or anyone else involved in the pearl clutching, actually gets. In fact, men in start-ups, and business in general, could learn one more lesson from their reaction. If you're about to make an ass out of yourself, assume that it could damage your reputation and career. Because it probably does, no matter how much ritual backslapping you seem to get. There may be a knife being planted as well.
Related:
- Early VC Backers Exit Twitter's Board -- a Bad Sign for Innovation
- TechCrunch Drama Fest Is an AOL Management Meltdown
- Conflict Zone: AOL Sets Up TechCrunch's Arrington as a VC, but Still Lets Him Write
Erik Sherman is a widely published writer and editor who also does select ghosting and corporate work. The views expressed in this column belong to Sherman and do not represent the views of CBS Interactive. Follow him on Twitter at @ErikSherman or on Facebook.
Twitter FacebookDisclaimer: The copyright of this article belongs to the original author. Reposting this article is solely for the purpose of information dissemination and does not constitute any investment advice. If there is any infringement, please contact us immediately. We will make corrections or deletions as necessary. Thank you.
