Can you build the right team at the right time?

Objectives Examine teaming at the opportunity identification phase of your new venture creation activities

Macroeconomic Change Entrepreneurial Motivation Entrepreneurial Behavior Industry Condition Industry Status Opportunity Identification Problem Solution Advantage Team Value Innovation Competition The Opportunity Analysis Canvas TM Entrepreneurial Mindset

Entrepreneurship is a team sport “The myth that any given entrepreneur is a rugged individualist, who toils alone, can often be demolished by just asking to look at his or her calendar. Nearly always, the majority of his or her time will be spent as part of a group - at meetings with the management team, board meetings, project team meetings, and so on. As such, knowledge about leading a group, being a constructive group member, the dynamics of healthy versus destructive groups, and designing – or repairing – groups so that they function well should be a central component of entrepreneurship research and education.” Tom Byers, Heleen Kist and Bob Sutton of Stanford University

How do startups build teams? Thoughtful consideration of: –Complimentary interests, –Contrasting skillsets, and –Differentiated relationships Or Friends

Reasons for teaming? Industry/domain knowledge –Understanding of the customer and the market –Insights on competitors and trends –Experience and know-how in industry Business knowledge –Management strategy –Finance and accounting –Sales and marketing Relationships and social capital Financial capital

Should you team with a friend? Teaming with friends usually ends friendships and kills the business Consider these questions 1.Do your friends truly complement your strengths and weaknesses? 2.If you had the money to hire an experienced professional to do the job, would you hire your friend?

The “ideal” approach 1.Only hire people you know 2.Find partners with the resources to make a long-term commitment 3.Don’t hire college kids 4.Integrate people with sales and marketing experience early 5.Staff your core group with people who are passionate about the company, not the financial outcome

The “ideal” approach 1.Only hire people you know 2.Find partners with the resources to make a long-term commitment 3.Don’t hire college kids 4.Integrate people with sales and marketing experience early 5.Staff your core group with people who are passionate about the company, not the financial outcome “I don’t know the right people.” “My candidate team members are not wealthy.” “I can’t afford experienced people.” YES!

An approach for the less-connected 1.Identify the skills your venture needs –Don’t outsource core elements of the company (i.e. tech) 2.Recruit people where you need help –Friends with the right skills, values, relationships, etc. –Co-workers, friends of friends, etc. –LinkedIn, Facebook, etc. 3.Understand the roles of cash and equity for recruitment 4.Create a strong culture based on values that are important to your founding team –Use those values to hire, promote and manage

The extended team Board of Advisors –Mentors Investors Attorneys –Corporate formation and fundraising –Contracts and partnerships –Industry expertise Accountants – Planning – Taxes Partners Suppliers

Board of Advisors Provide objective and informed feedback –Quarterly or monthly advisory meetings Service providers have limitations that limit their ability to be candid or fully helpful –Cannot make forward looking statements or be biased in their recommendations –Boards of Advisors without official powers are not bound to the same constraints May be compensated in equity or cash

Summary Be thoughtful in selecting your co-founders, internal team, and extended team –Beware the pitfalls of friends and family Leverage your relationships to establish your team Build a board of advisors early and engage them in your team building efforts