{"id":18601,"date":"2020-09-03T07:00:29","date_gmt":"2020-09-03T14:00:29","guid":{"rendered":"https:\/\/foundersnetwork.com\/?p=18601"},"modified":"2020-09-03T11:47:21","modified_gmt":"2020-09-03T18:47:21","slug":"getting-it-one-inch-off-the-ground-with-ben-hutchinson","status":"publish","type":"post","link":"https:\/\/foundersnetwork.com\/getting-it-one-inch-off-the-ground-with-ben-hutchinson\/","title":{"rendered":"Getting it One Inch Off the Ground with Ben Hutchinson"},"content":{"rendered":"<h3><span style=\"font-weight: 400;\">Whether you\u2019re starting a company or moving a heavy object, lifting something the first inch is always the hardest part. <a href=\"https:\/\/www.linkedin.com\/in\/benjaminhutchinson\/\">Ben Hutchinson<\/a>, founder of <a href=\"http:\/\/www.rocketplace.com\" target=\"_blank\" rel=\"noopener noreferrer\">Rocketplace<\/a> and <a href=\"https:\/\/www.earnest.com\">Earnest<\/a>, shares his methodology for launching a company, from choosing a cofounder to finding your niche as an early-stage startup.<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Launching a startup is almost always a long-term proposition. But according to two-time founder <a href=\"https:\/\/www.linkedin.com\/in\/benjaminhutchinson\/\">Ben Hutchinson<\/a>, the very first steps are the hardest part.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Hutchinson likens starting a company to moving a heavy box: \u201cThe first inch is the hardest part,\u201d he says. \u201cThen once you&#8217;ve got something in motion, you\u2019re steering and influencing. The first inch is taking nothing and making something.\u201d\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Hutchinson speaks from personal experience, having co-founded the fintech leader <a href=\"https:\/\/www.earnest.com\">Earnest<\/a> a short few years after the financial crisis of 2008-2009. After launching <a href=\"https:\/\/www.earnest.com\">Earnest<\/a> in 2013, he grew it to over 200 team members, helped to refinance $1 billion worth student loans, and ultimately successfully exited to loan servicer <a href=\"https:\/\/navient.com\/\">Navient<\/a>. More recently, he founded professional services platform <a href=\"http:\/\/www.rocketplace.com\" target=\"_blank\" rel=\"noopener noreferrer\">Rocketplace<\/a> in 2019.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cIn the very first stages of launching a startup, there are several critical pieces that merit careful thought and consideration,\u201d Hutchinson adds. Chief among them is choosing a co-pilot on what will likely be a long-haul journey. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Register to <a href=\"https:\/\/foundersnetwork.com\/function\/getting-it-one-inch-off-the-ground-with-2-time-founder-benjamin-hutchinson\/\">Ben\u2019s full webinar<\/a> and see if you <a href=\"https:\/\/foundersnetwork.com\/request\/\">qualify for membership<\/a> to <a href=\"https:\/\/foundersnetwork.com\/\">Founders Network<\/a> and get Ben&#8217;s <\/span><span style=\"font-weight: 400;\">tried-and-true tips on:\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Choosing a Cofounder<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Idea Selection<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Seed Fundraising<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Making you First Hires<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Finding Product-Market Fit<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">\u201cCompany building is very hard, and it&#8217;s very hard emotionally,\u201d Hutchinson says. \u201cSecondly, the benefit a cofounder gives you is that continuous conversation about your business. No matter how smart your mum or your partner or your investor is, you can&#8217;t get them up to speed fast enough to have the conversation about the hard things. Having a sounding board in someone who has all of the context is incredibly valuable.\u201d\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">While the co-founder relationship is naturally a very close one, it\u2019s risky to go into business with a best friend or family member. Instead, Hutchinson recommends that for anyone starting a company, grab a piece of paper and \u201cwrite down the names of the three smartest people you know, and then another list of your 11th to 20th best friends,\u201d he adds. \u201cIf there isn\u2019t a name that appears on both lists, then you probably don&#8217;t have a co-founder.\u201d\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">And then, of course, there\u2019s the idea itself. Thinking critically about your business concept &#8212; as well as turning your thoughts to the future &#8212; will help to ensure your idea is strong and sellable.\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">There are a number of criteria that founders should evaluate methodically: the scale of the idea, what makes it different, what lessons can be applied from past experience, among others. And\u00a0<\/span><span style=\"font-weight: 400;\">contrary to the popular cliche that founders aspire to \u201cchange the world,\u201d it\u2019s also best to anticipate how the world is going to change &#8212; and tailor your idea to that expectation.<\/span><\/p>\n<span class='bctt-click-to-tweet'><span class='bctt-ctt-text'><a href='https:\/\/x.com\/intent\/tweet?url=https%3A%2F%2Ffoundersnetwork.com%2F%3Fp%3D18601&#038;text=%E2%80%9CIt%27s%20really%20important%20to%20be%20incredibly%20passionate%20about%20your%20idea.%20But%20you%20also%20need%20to%20be%20passionate%20about%20how%20the%20world%20is%20going%20to%20change%2C%20and%20what%20opportunities%20will%20exist%20in%20that%20future%20state.%E2%80%9D%20-%20%40benmhutch&#038;via=foundersnetwork&#038;related=foundersnetwork' target='_blank'rel=\"noopener noreferrer\">\u201cIt&#039;s really important to be incredibly passionate about your idea. But you also need to be passionate about how the world is going to change, and what opportunities will exist in that future state.\u201d - @benmhutch <\/a><\/span><a href='https:\/\/x.com\/intent\/tweet?url=https%3A%2F%2Ffoundersnetwork.com%2F%3Fp%3D18601&#038;text=%E2%80%9CIt%27s%20really%20important%20to%20be%20incredibly%20passionate%20about%20your%20idea.%20But%20you%20also%20need%20to%20be%20passionate%20about%20how%20the%20world%20is%20going%20to%20change%2C%20and%20what%20opportunities%20will%20exist%20in%20that%20future%20state.%E2%80%9D%20-%20%40benmhutch&#038;via=foundersnetwork&#038;related=foundersnetwork' target='_blank' class='bctt-ctt-btn'rel=\"noopener noreferrer\">Share on X<\/a><\/span>\n<p><span style=\"font-weight: 400;\">\u201cIt&#8217;s really important to be incredibly passionate about your idea,\u201d Hutchinson says. \u201cBut you also need to be passionate about how the world is going to change, and what opportunities will exist in that future state.\u201d\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Once you have a co-founder selected and an idea established, seed fundraising isn\u2019t far off.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Experienced founders like Hutchinson emphasize the need to <\/span><a href=\"https:\/\/foundersnetwork.com\/blog\/how-to-fundraise-efficiently-with-mike-wilner-from-aws\/\"><span style=\"font-weight: 400;\">choose investors wisely.<\/span><\/a><span style=\"font-weight: 400;\"> Rather than focusing on valuation or dilution, focus instead on alignment. All capital is not equal, and ensuring alignment on goals can help prevent problems in the future.<\/span><\/p>\n<span class='bctt-click-to-tweet'><span class='bctt-ctt-text'><a href='https:\/\/x.com\/intent\/tweet?url=https%3A%2F%2Ffoundersnetwork.com%2F%3Fp%3D18601&#038;text=%E2%80%9CStakeholder%20alignment%20is%20what%27s%20most%20important.%20Early%20stage%20companies%20are%20very%20fragile%2C%20and%20any%20strain%20from%20misalignment%20is%20liable%20to%20create%20a%20fracture.%E2%80%9D%20-%20%40benmhutch&#038;via=foundersnetwork&#038;related=foundersnetwork' target='_blank'rel=\"noopener noreferrer\">\u201cStakeholder alignment is what&#039;s most important. Early stage companies are very fragile, and any strain from misalignment is liable to create a fracture.\u201d - @benmhutch <\/a><\/span><a href='https:\/\/x.com\/intent\/tweet?url=https%3A%2F%2Ffoundersnetwork.com%2F%3Fp%3D18601&#038;text=%E2%80%9CStakeholder%20alignment%20is%20what%27s%20most%20important.%20Early%20stage%20companies%20are%20very%20fragile%2C%20and%20any%20strain%20from%20misalignment%20is%20liable%20to%20create%20a%20fracture.%E2%80%9D%20-%20%40benmhutch&#038;via=foundersnetwork&#038;related=foundersnetwork' target='_blank' class='bctt-ctt-btn'rel=\"noopener noreferrer\">Share on X<\/a><\/span>\n<p><span style=\"font-weight: 400;\">\u201cStakeholder alignment is what&#8217;s most important. Early stage companies are very fragile, and any strain from misalignment is liable to create a fracture,\u201d Hutchinson says. \u201cAt each stage, taking money from the appropriate investors for that stage is really important. You are going to be a team for a long time.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cThe same rationale <\/span><a href=\"https:\/\/foundersnetwork.com\/blog\/how-to-build-a-winning-startup-team-with-max-shapiro\/\"><span style=\"font-weight: 400;\">applies to hiring<\/span><\/a><span style=\"font-weight: 400;\">. Oftentimes, an early stage company will function with a small and cohesive team for some period of time. But it\u2019s never too early to start thinking carefully about culture, and ensuring a diversity of viewpoints as your team tests and learns. Those two attributes can help bad ideas from metastasizing,\u201d Hutchinson adds.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cHiring an early team isn\u2019t about just replicating yourself ten times. It&#8217;s actually about ensuring you have a diversity of viewpoints that will allow you, as a group, to go through a hyper-learning phase,\u201d he says.<\/span><\/p>\n<span class='bctt-click-to-tweet'><span class='bctt-ctt-text'><a href='https:\/\/x.com\/intent\/tweet?url=https%3A%2F%2Ffoundersnetwork.com%2F%3Fp%3D18601&#038;text=%E2%80%9COnce%20you%27ve%20got%20a%20product%20out%20in%20the%20market%2C%20you%20have%20to%20take%20the%20signal%20that%20you%27re%20getting%20and%20work%20towards%20a%20place%20where%20the%20market%20is%20pulling%20the%20product%20out%20of%20your%20hands.%E2%80%9D%20-%20%40benmhutch&#038;via=foundersnetwork&#038;related=foundersnetwork' target='_blank'rel=\"noopener noreferrer\">\u201cOnce you&#039;ve got a product out in the market, you have to take the signal that you&#039;re getting and work towards a place where the market is pulling the product out of your hands.\u201d - @benmhutch <\/a><\/span><a href='https:\/\/x.com\/intent\/tweet?url=https%3A%2F%2Ffoundersnetwork.com%2F%3Fp%3D18601&#038;text=%E2%80%9COnce%20you%27ve%20got%20a%20product%20out%20in%20the%20market%2C%20you%20have%20to%20take%20the%20signal%20that%20you%27re%20getting%20and%20work%20towards%20a%20place%20where%20the%20market%20is%20pulling%20the%20product%20out%20of%20your%20hands.%E2%80%9D%20-%20%40benmhutch&#038;via=foundersnetwork&#038;related=foundersnetwork' target='_blank' class='bctt-ctt-btn'rel=\"noopener noreferrer\">Share on X<\/a><\/span>\n<p><span style=\"font-weight: 400;\">That\u2019s essential groundwork for discovering product-market fit, which is a critical milestone for any early stage company. You\u2019ll know you\u2019ve reached it when \u201ceven though it\u2019s broken, the market keeps wanting the product &#8211; you\u2019ve solved a problem,\u201d he adds.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cOnce you&#8217;ve got a product out in the market, you have to take the signal that you&#8217;re getting and work towards a place where the market is pulling the product out of your hands,\u201d says Hutchinson.\u00a0\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Whether you\u2019re starting a company or moving a heavy object, lifting something the first inch is always the hardest part. Ben Hutchinson, founder of Rocketplace and Earnest, shares his methodology &#8230; <\/p>\n<div><a href=\"https:\/\/foundersnetwork.com\/getting-it-one-inch-off-the-ground-with-ben-hutchinson\/\" class=\"more-link\">Read More<\/a><\/div>\n","protected":false},"author":31,"featured_media":18611,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_price":"","_stock":"","_tribe_ticket_header":"","_tribe_default_ticket_provider":"","_tribe_ticket_capacity":"0","_ticket_start_date":"","_ticket_end_date":"","_tribe_ticket_show_description":"","_tribe_ticket_show_not_going":false,"_tribe_ticket_use_global_stock":"","_tribe_ticket_global_stock_level":"","_global_stock_mode":"","_global_stock_cap":"","_tribe_rsvp_for_event":"","_tribe_ticket_going_count":"","_tribe_ticket_not_going_count":"","_tribe_tickets_list":"[]","_tribe_ticket_has_attendee_info_fields":false,"footnotes":""},"categories":[144],"tags":[10886,10887,8130],"table_tags":[],"class_list":["post-18601","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-tech-startup-advice","tag-california","tag-hiring","tag-startup-investing-and-funding"],"acf":[],"featured_image_data":{"src":"https:\/\/foundersnetwork.com\/wp-content\/uploads\/2020\/09\/Benjamin-Hutchinson-2.png","alt":"Benjamin Hutchinson","caption":""},"_links":{"self":[{"href":"https:\/\/foundersnetwork.com\/wp-json\/wp\/v2\/posts\/18601","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/foundersnetwork.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/foundersnetwork.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/foundersnetwork.com\/wp-json\/wp\/v2\/users\/31"}],"replies":[{"embeddable":true,"href":"https:\/\/foundersnetwork.com\/wp-json\/wp\/v2\/comments?post=18601"}],"version-history":[{"count":0,"href":"https:\/\/foundersnetwork.com\/wp-json\/wp\/v2\/posts\/18601\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/foundersnetwork.com\/wp-json\/wp\/v2\/media\/18611"}],"wp:attachment":[{"href":"https:\/\/foundersnetwork.com\/wp-json\/wp\/v2\/media?parent=18601"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/foundersnetwork.com\/wp-json\/wp\/v2\/categories?post=18601"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/foundersnetwork.com\/wp-json\/wp\/v2\/tags?post=18601"},{"taxonomy":"table_tags","embeddable":true,"href":"https:\/\/foundersnetwork.com\/wp-json\/wp\/v2\/table_tags?post=18601"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}