Many of the tech entrepreneurs I see, at least initially, are one-man bands – and these fall into two general categories: (i) either non-technical folks with a business concept looking for tech talent to build their vision or (ii) engineers with a new widget ready to introduce it to the world. Technical founders that are also strong in business and non-technical founders that can lead product development are unicorns – the exception that proves the rule. Tech entrepreneurship is, in short, a team sport.
“No one can whistle a symphony. It takes a whole orchestra to play it.” – Richard Branson
Don’t Be a Team of One
I’ve worked with many a university professor who believes they can do it all on their own (in addition to their teaching and research obligations) only to be slapped in the face by operational, financial or sales and marketing issues that they did not even realize existed. Equally naïve are non-technical founders that believe that they can efficiently outsource the development of a new product. The smart ones realize quickly product development (and ownership) is a competency best kept in-house.
Founders will make thousands of decisions throughout the life of their start-up – markets to pursue, dollars to allocate, technology to tweak BUT probably the most important decision that an entrepreneur must make is who will be on your team, especially early on. Not only will you be working side by side with them countless hours, but the success of your endeavor is very much in their hands. As headcount increases the importance dilutes.
Hire for Team Fit
I often hear, we only hire the very best. Not to belittle the importance of subject matter expertise – a qualified experienced professional is the baseline. But I would argue that a founder should optimize for fit, not brilliance. I have seen more companies fail for lack of compatibility than for lack of acumen.
An internet-based sports tech company I worked with hired a CFO because of investor demands. Unfortunately, the CFO had no interest/experience in either sports or internet technologies. In fact, he decried the internet as a “passing fad”. His persistent pessimism and uncooperativeness poisoned the small team. Product development stalled and sales efforts became unfocused. Ultimately the in-fighting lost the company their first mover advantage and they were purchased by a well-heeled competitor.
Build a Great Team
Hire slowly and fire quickly. Make sure the early team members:
- Can do the work
- Share your vision
- Share your principals
- Share your work ethic
Utilize trial periods to confirm suitability and if things are not working out nip it in the bud. Finally, have proper agreements (a subject for another time) in place with ALL employees. I’ve seen attorneys sour deals but more often, I’ve seen them keep an entrepreneur out of the fire.
Arcadio (Kayo) Ramirez
Tech Team Business Consultant
A seasoned professional, Arcadio Ramirez brings over three decades of experience in working with early-stage technology business to the Michigan SBDC. An attorney by training, he provides invaluable guidance to startup enterprises on a range of crucial matters including financing, commercial operations, corporate governance and intellectual property strategies. His involvement in financial projects has overseen ventures surpassing $30M in magnitude.
Prior to joining the Michigan SBDC Arcadio was engaged in a number of entrepreneurial pursuits, successfully orchestrating the formation, funding, operation and eventual sale of two distinct companies. Notably, one of these ventures, Do It Sports, was among the pioneering transaction-based Internet platforms.
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