Let's Do Dinner

There's a hot discussion on Quora about what leads to start-up failure. I think the jury is out that it usually stems back to poor teams. I couldn't agree more. Nothing will better determine success than the initial group you start your business together with. Actually a poor team will lead to failure even in an established company. If you're joining a company and something about the team or your colleagues doesn't feel right, be cautious.

I have a very easy way of determining this. It may be simplistic but it works. Put yourself in the scenario of having to invite home whomever you feel uncomfortable about. Now really think about it. Would you even ask this person over to your home, within your private four walls. If you already cringe at having the person in your house, start rethinking what you're planning. Further, even if you could foresee having said person over, would you gauge it as going well? Would your husband or wife get along with this person? Could you see yourself having an interesting evening of quality discussion with them? If none of this seems possible, then you have a problem.

In a start-up scenario, you're dealing with very intimate issues at founder level. The threat of failure and utter ruin kind of hangs over your head day in, day out. That sure is intimate in my eyes. You better have people at your side whom you wouldn't mind having in your home. Further, even if it's not life or death, it should be fun. Sure, you can foresee yourself sucking it up and tolerating said person but is it worth it? Are you willing to be in such a high-risk situation with this person at your side? Additionally, do you think you'll give your all if the person you're running your business with is the last person you'd want at your dinner table?

All too often I see founders walk in the door after starting a business with someone they barely know. It boggles my mind that someone would do this. Sure, when going into a larger business you may overlook some of the drawbacks of your colleagues. Yet in a start-up its kind of hard to even overlook the little things. The business could end up either making you wildly rich and successful or it could ruin you at the other end of the spectrum. It's worth putting the effort into making sure you're diving in with the right people. AND people never change. If you think you'll get them to do things different, don't bother. You'll need the energy to make your business successful and not in making your co-founder the person you wish they were.

Comments

[Davestone]

Fortunately, if it all tanks, this is the sort of lesson you only learn once. Hopefully it doesn't tank...

I'm surprised with the number of entrepreneurs (in UK) that don't do founder vesting by standard. In-fact, I surprised by the number that don't know what a vesting schedule is. O.o