©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. BUILDING THE FOUNDING TEAM 7

©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Entrepreneur’s Network Figure 7.1

©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Creating the Founding Team  There are benchmarks for an effective team.  Special circumstances: Special Issues for High-Tech Teams Unique Issues Surrounding Virtual Teams Founding Teams for International Ventures Rules for Friends and Families

©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Board Members… and the Business Life Stage Figure 7.2

©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Seeking Personal Advisors  Building a board of directors  Advisory Board  The Mentor Board  Mistakes to Avoid All team members should have the required experience and qualifications, and the same goals for the business. Avoid using only family and friends. Only give stock incentives after an individual has proven him or herself.

©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Outsourcing… Independent Contractors  Independent contractors (ICs) own their own businesses and are hired by the entrepreneur to do a specific job. Including: consultants, manufacturers, distributors, employee leasing firms, and professional advisers. Hidden costs

©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Types of Independent Contractors  Consultants  Professional employer organizations (PEOs)  Manufacturing support  Sales support

©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. New Venture Action Plan Identify the members of the founding team or at least the expertise needed to start the venture. Determine what expertise is missing from the management team and how you will supply it. Begin asking questions about potential professional advisors, such as an attorney or accountant. Determine whether you will need a board of directors, an advisor board, or a mentor board. Identify at least one type of independent contractor that the new venture could use. End of Chapter 7