By Shefaly Yogendra
The search for a co-founder is analogous to dating. There is an ideal checklist of attributes — skills, qualities and more as you will see — and then there is the ineffable chemistry check.
Since no two people are alike, we will naturally encounter both similarities and differences. Over the years of working with startups, I have developed a framework , which can help you think through the dilemma.
Values of co-founders should ideally be the same or similar. A key value to consider is the importance of control. Extensive research by Noam Wasserman of Stanford finds that there are people, who want complete control and ownership, and there are people, who understand that some control may need to be given up to build and grow the venture’s reach and value. This understanding is pretty fundamental to building a venture, especially if you plan to raise external investment to do so. A fundamental disagreement here would not make for a a good co-founder relationship.
Goals, needless to say, have to be similar not different, although one can work with the possibility of changing mind later. For instance, a co-founder may commit today to work on the venture till an exit event, but a few years down, agree to give up an active role in running the venture. Such possibilities are hard to predict but if all else is working, they are negotiable.
Skills are best if different or complementary. It helps if the co-founders bring different domain expertise to building the startup. If you are a techie who does not have experience in speaking to early adopters and customers, and your co-founder is the customer facing person essential to driving adoption and bringing customer feedback on board, you have brought together two essential skill sets.
Work ethic is best if similar. Some people emphasise hard work, others outcomes. A startup needs both but it needs outcomes and growth milestones more than anything else. If a founder thinks hard work is substitute for results, it is not going to work. It is therefore best if co-founders are on the same page as to the purposiveness of the work ethic. It is worth noting that work hours are not the same thing as work ethic. Work hours are often negotiated with the needs of the start-up in mind. While a developer can work late into the night coding, a customer facing co-founder has to work the hours when she can meet customers and partners.
Networks serve a startup best if different, or complementary. This would help the startup maximise reach into customers as well as investors. The eagle-eyed among you may note this may not work when your co-founder is your former classmate from University, as mentioned in an earlier column. In such a case, look for the contacts you need in another co-founder or an advisor. Ask yourself “what things are you definitely not good at?” and go from there.
If this framework is lulling you into a false sense of security, don't let it. Being able to judge these essential qualities is not simple or quick. Don't rush the decision. Spend time talking through things and listening carefully, how they see failure and success, how they talk about disappointment, how they treat people over whom they have any kind of power, how they talk about people they have relationships with.
Occasionally someone may tick all the boxes and yet make you uncomfortable. Judging someone’s character is hard, and a lot more personal than judging their skills and experience. In such moments, listen to yourself, I say. Do not dismiss your instincts and do not dismiss your gut.
However as any person in a long term commitment or relationship will tell you, the marriage begins once the wedding is over. Committing to the relationship requires the commitment to work with all that comes with it. It helps to lay down early ground rules for all to adhere. That is the scaffold of your organisation’s culture, more on which a little later in this column series.
It is worth remembering that the advertised product may be quite different from what is delivered. In other words, people may disappoint you. They may demonstrate different behaviours in an organised and predictable environment than they do in a start-up. A start-up is a high stress, demanding environment where decisions are not hedged by a large team and wrong decisions can actually waste valuable money and time.You cannot predict all this but you can deal with it. More on conflicts arising and how to deal with those will be discussed later in this series.
The author is a decision-making specialist, and advises founders and CEOs on technology, risk, branding and talent. She can be found on Twitter: @Shefaly. This is the third part in a series (first and second) on the startup ecosystem.
Published Date: Oct 03, 2016 11:20 am | Updated Date: Oct 03, 2016 11:20 am