Interviews at The Entrepreneur Center @NVTC

Bisnow on Business: Where are you from, and what from your childhood sparked your entrepreneurial spirit?
My father was in the food service business at Pillsbury and Marriott, so I grew up in California, Minnesota, and Bethesda. I was often changing schools and taking up new sports--7 schools in 12 years, if I recall correctly. This helped me develop the skills necessary to meet and interact with new people, and try different activities. Over time I became more confident in my ability to be successful at new things. Even though I was often the outsider, I became pretty good at picking teams and injecting new ideas.

Do you enjoy taking risks?
My wife might reference my investment acumen and suggest otherwise, and add that I should stick to selling software. However, I do enjoy team sports as well as individual activities such as scuba diving, motorcycling, and the outdoors. I guess there is a level of gambling in these. But for the record, my trips to Las Vegas or Atlantic City are usually for business reasons!

No gambling?
Entertainment there is confined to shows or people watching. I find other ways to lose money, not to mention that I also have four kids.

What is Secure Software?
We provide products and services that let customers design, build, and deploy more secure software applications. Our products detect vulnerabilities and our services help customers develop longer term processes for building security. The industries we focus on include financial services, public sector, telecommunications, and ISVs.

So you’re trying to stop hackers?
Exactly.

Who are some of your customers and what is an example of what you do for them?
The Navy is a great customer that we’ve worked with to set up a system by which they test new applications for security vulnerabilities. Another customer is the Depository Trust and Credit Corporation, which brokers and closes all securities transactions in the U.S. We give them products so their teams of developers can validate that there are no security vulnerabilities in their applications.

Who do you partner with?
We have a number of partners, including large ISVs as well as services firms. We just signed an agreement with Foundstone, recently purchased by McAfee, which will use our Code Assure product and our process technology to expand the offerings they deliver to their customers. A great local company, Sourcefire, recently purchased by Checkpoint, uses Code Assure to validate the security profile of their products before they ship them. We offer services providers the ability to automate what has traditionally been manual.

What’s been your biggest focus as CEO ramping up a business?
We were initially focused on the plan, the requirements for a saleable product, the target customer or buyer, and pinpointing and expressing what would compel them to buy. Once we were funded, the focus shifted to hiring the right team, and acquiring early customers. Now that we have successfully shipped our initial products, we are focused on marketing and sales processes, establishing key partnerships, and expanding. In fact, at the moment we’re looking for more software engineers and sales professionals.

What’s a lesson you feel you’ve learned on the job?
If I had it to do again, I would have started even sooner focusing on customers and listening to their requirements as we designed our business. Founders start companies thinking they know what the market needs, but they need to validate that with real customers. You need to know real customers’ requirements for product features and functionality, or support and training. This whole security area is new, and people want to learn about it, be trained in it, and apply the newest technologies. You need to get out there and really see where customers are in terms of their adoption capabilities.

Can entrepreneurs be prudent or is there a need to take chances?
Risk means different things to different people. Assuming you understand the financial risk and career implications, starting or funding a new company is more about process than risk. Yes, there is a lot to be said for timing, and some good old fashioned luck, but research, planning, sound advice, and execution are critical. I would submit that one of the most important ingredients an entrepreneur must have is the ability to actually make a decision. I realize that you will make bad decisions, but the Law of Decisions suggests the more decisions you make, the more good ones you will execute on. Many entrepreneurs get paralyzed for fear of being wrong, and this is deadly infectious.

How do you think people should decide whether to use their own money as opposed to finding outside investment?
It depends on the business. If you're buying an income, purchasing a small mature business with a track record, I think using your own money may be the only way to have an accomplishment. If you're starting something new, where growth requires significant capital, the added expertise which can accompany outside money is very important, and you're better off obtaining strong investors. I think you want investors who bring unique skills germane to the business, as well as personal characteristics consistent with your own. You will spend a lot of time with your new team, and thus you better respect them and be prepared to deal with the good times as well as the tough decisions.

Does money make a successful startup?
Without money it becomes challenging to buy all the ingredients. However, it's not the most important one. A well thought out idea with an executable plan is the most important up front ingredient. If you have a compelling idea, a market, and a credible plan, you can get money. Before you do seek money, it's ideal to have the second most important ingredient, which is, some level of testimony from prospects or customers that they will actually buy when your idea materializes. This validates the idea, and sends signals to your prospective investors that you've done your homework. It also helps to shape the requirements for whatever it is you're going to take to market.

What do you think the most important roles in starting a company are?
It's very important to find experienced utility players who are willing to put their heart and soul into the company. They need to do so knowing the payoff can be a lifestyle changing reward. This is not always confined to the potential for financial gain. That said, I think you need someone who can effectively reconcile market demand with the unique value which serves as the basis for starting the company. You also need someone who can facilitate decision-making and sell. Optimally, these two individuals can work very effectively together to build the product offering, establish early customers, and continue to attract the remaining required talent.

Would you entertain a buyout offer, or do you want to reach a certain level of success before thinking about that?
When you start down the path of building any business, I think you need to factor in what the exit scenarios might look like. The landscape will undoubtedly change, but thinking about this early will enable you to make decisions more effectively. I often tell our team as well as those who ask, that we are focused on building a successful sustainable business. This sounds oversimplified, but it has shaped our decisions and impacted the investments we have made. If we remain focused on this and continue to build our customer base, the exit will take care of itself. I do think it's important to have someone who understands strategy, and has the ability to provide coaching through an exit.

What have your biggest mistakes and lessons been?
Personally, I think my biggest mistake was not taking my education more seriously earlier in life. I probably should have pursued an advanced degree right out of college. I try to make up for this by reading relentlessly, trying to be a good listener, and surrounding myself with people who are a lot smarter than I am. On the business side, now that I've gotten a taste of the CEO role, I probably should have pushed to start my own business or become a CEO earlier in my career. The lessons from both of these points can probably be applied to anyone. That is to say, push yourself and don't be afraid to start out on your own. Failure only makes you smarter and tougher.

We’re talking to you as you’ve just landed in Boston. How much of the time do you travel, and anything funny happen to you lately?
50 percent of the time, especially to our financial services clients in New York City, Boston, San Francisco, and Atlanta. Nothing funny lately, but I was up at four this morning, so I may have momentarily lost my sense of humor.   :)