Heidi Roizen argues that entrepreneurs should hire people smarter than them in their fields. Surrounding yourself with talented people who know more than you do is how you actually get things done.
The vast majority of companies that I know from having worked with as an entrepreneur and then as an investor succeed or die by the quality of the team. And there's an interesting thing I see happen that entrepreneurs tend to do. And so let me describe it to you, okay? You're young and part. Pardon my pardon this. You're young and you don't know shit, right? And you know that you don't know shit about anything. But you have an idea to start a company. And so then you go out and you think, well, I need to hire a VP of sales. And you think, well, I don't want to hire someone that knows a lot more than I do because then I'm kind of intimidated by that person. So I think I'll hire my roommate, right? Who's like the same age as me and knows about the same amount of stuff as me. And then you want to hire a VP of something else, an HR person. Oh, maybe I'll hire my kid sister. Actually, that was good for me because that's what my brother did. But it's not all bad. But what you will do is you will surround yourself with people that are familiar to you. There's a good reason to do that. You trust them. You know them. But there is sort of sometimes a bad reason to do that, which is you're a little intimidated by people who actually know things better than you do. But the problem with this strategy is if you want to be the CEO and you want to build out a company and you hire everyone who doesn't know things, you. If you want to be the smartest person in the room about everything, you're going to build a crummy team. Do you really want to have a VP of sales who knows less about sales than you? Do you really want to have a CFO who knows less about financial accounting than you do? Do you really want to have a head of engineering who knows less about engineering than you do? No, of course not. You have to take the risk to find people that are so much better at you than these things, and then trust that in the relationship. You. Your job being to manage, empower them, make sure the team gets along. Your job is not to know more than that person. And in fact, I would argue if you know more than that person, then why the hell don't you just do the job? So I really believe in this. I believe in it even more as an investor. My goal. My goal truly is to be the dumbest person in the room. Okay, that sounds terrible, doesn't it? But that is my goal, right? I want to invest in people that are really bright and really amazing and I might know some things, I can be helpful to them. I. But I really want to find those incredible people and surround myself with them because that's how real, exciting, world changing things get done.
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