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I am always bothered by one question in my mind: How do startup founders “form the initial team” ? For those of you who have read my startup culture report, comparing US, Japan and Indian startup cultures, we touched on some of that. However, I would be very keen on hearing some views from you. To be more specific:
1. If one has an idea, what is the process one follows to find the “right partner” ? Is there such a process?
2. I quizzed about 20 famous, successful, serial entrepreneurs. Most did not have a good answer. The best answer I got is as follows, from the founder of Analog Devices:
a. 2 founders is the best scenario
b. both should complement each other in terms of skillsets.
c. 1 of them should be “technical/scientific” and the other a business guy and the leader.
d. The reponsibilities should be clearly dilineated.
thoughts? I think this is a good research project, which might help first time entrepreneurs…
-Shiva Venkatraman
shivav@sloan.mit.edu
Add to that (somewhere at the top)
- Personal comfort and trust
- Commonality of purpose
- Conviction
I actually place skills set complimentarity somewhat lower, as long as long term roles are not the same.
Hi Alok,
I agree in principle with your additions but the question is how does one go about finding their partner? The founder of Analog couldnt answer that but came close.
-Shiva
I wonder whether one can ever freeze on a `formula’ for founding a startup. Not everything in the world can be reduced to a Check list. Definitely not a startup.
A startup calls for a lot of multi-tasking and there’s only so much one can stretch. Keep all options open. The moment you find a sensible someone sharing the idea or even better, rope him in. If somebody says two is a right number, may be it was right for his business. For your business, you have to keep figuring out as you evolve. Normally startups don’t look the same going forward - you end up doing something totally different when you finally get to do it. That’s the way it should be and that means you adapt very well.
I agree with Krish that there is no set formula.
There are so many ups and downs while running a startup that even a very sensible and mature person can get disarrayed.
The best thing is that the partners know each other before they start working together. Well know each other doesnt mean that they have to be like close pals.
Just that you have been tracking each other for sometime.
So when you shake hands for a startup you know what you are getting into. You will be alot more comfortable. As pointed by Alok personal comfort is very important.
My two paisa worth :
1. Obviously need to have the comfort, trust and some sort of professional partnership as a starting point.
2. All the partners/ founders need have a common purpose i.e. is to become entrepreneurs.
3. They need to follow the same vision ( may be of one person or formed jointly)
4. Need to have the ability to go and present them selves as a team which Vc’s and others can relate to as a TEAM and not individuals.
5. And most importantly need to have the joint courage to taken on the project in spite of obstacles – VC’s ?
Please do no look for good answers. Because there is none. Each startup is different. There is no definitive plan or checklist as Krish and other readers mentioned. There are so many suggestions out there on the web about on this topic. But based on my experience, here are my 2 cents:
1. When you come up with an idea to do some thing, many people may come up saying thats great let us do it, or i don’t think it will work. But few, believe in you rather than your idea and wanted to give it a try any way. These are the best prospects for your team. Its a very difficult path ahead. You need people who can stay with you, irrespective of rain or drain.
2. Choose people with complementary backgrounds. particularly business/mgmt/sales background. They are vital to success. Remember, up to 70% of effort will be spent on marketing alone.
3. If all you have is your close knit group of friends, mostly you all think alike, not a good team for problem solving. Choose people who think and act different. Outrageous is a good word to define. Because, each startup is entirely different and needs entirely new solution to every day problems than text book reasoning.
It is very difficult to find people who match all three aspects, but worth exploring ALL THE TIME. You never know. Once you find them, be prepared to loose one or all of them. Keep everything in written form. Assume every possible difference and situtation and decide in writing how to go about it. Your can not risk your dreams at the cost of one or all of them. That is why, it should be an ongoing process at every networking opportunity.
Trust & comfort are very important. If a team has this, it may even compensate for lack of 2a, 2b & 2c .
btw, on a related note, the following contains detailed info on the origin of Mindtree
http://www.mindtree.com/bro/story.pdf
http://www.mindtree.com/bro/story.pdf