Don’t Make These Seven Mistakes When You Go Co-founder Dating

When incubation is over and funding is not forthcoming, you can still do your business a great favour and build a great founding team – a 20-something wannabe entrepreneur with an IIT tag told me at one of the numerous start-up events that seem to be taking place every other day. Well, loads of things happen there – from disruptive breakfasts to day-long demos and inspiring fireside chats – but speed-dating for would-be co-founders has emerged as one of the most intriguing trends at these networking events.

On the face of it, it’s quite simple. You get a few minutes to pitch your business, discuss potential collaboration and exchange contact info. Some organisers also give you closely matching CVs from aspiring experts. If all goes well, you get some follow-worthy interests and soon find the ‘perfect’ partner to launch or grow your business.

Wrong! Whether you are seeking a business genius, a tech wizard or a marketing guru, it’s absolutely crucial to get the basics right and the chemistry working between you. And by basics, we mean much more than expertise. It means building the right kind of founding team that will see your company through boom and slump. So go through this seven-point check list before you say ‘yes’ when you go speed-dating to find the significant other for your business.

Don’t skip that search even if it’s long and painful: Forget the myths about meeting the right person in the neighbourhood coffee shop. Tapping your iPhone contact list or LinkedIn network may not produce any result either although networking helps. Always remember that you are not looking for a potential employee or friendly help (most of us try and persuade friends and families to join them at the early stage). If you are starting a start-up, you have a vision and you need someone who will have faith in it, along with reasonable doubts, and the expertise to execute your vision. In brief, you need a charged-up, passionate professional – not an armchair idea-churner or an amateur with nothing better to do.

Don’t rush into it just because your peers are doing so: Every business thrives in a unique situation. There are loads of great companies with multiple founders (Google, Facebook, Twitter et al.), but it might make sense to fly solo for some time until you really need a partner of the same stature. Don’t go co-founder hunting just because you need to fill in skills gaps or require helping hands. Learn those skills yourself, get professional help and wait till you come across a dynamic person who feels the same way as you do. Don’t think for a moment that single-founder businesses are doomed to fail. On the contrary, you enjoy greater freedom, decide more quickly and execute real fast. Also, you will be less answerable if your ideas do not work. One great success story is Amazon’s Jeff Bezos and you need not look any further.

Common vision is fine, but don’t seek your replica: Most of us are in love with our ideas and look for those who would share our passion and dreams. A supporting co-founder could be a great asset in that respect. But never go for a ‘yes man’ or someone who is not involved enough to come up with different ideas. As an entrepreneur, you need a whole bunch of new perspectives and not a tunnel vision. If your co-founder is not ready to do some inspirational thinking at the building stage, your start-up would be stuck in a rut for a long time.

Don’t rope in big names for the heck of it: Big names make big news, but not a successful start-up. There are plenty of iconic names across the Indian start-up ecosystem, but you need someone who can get involved full-time and do things from the scratch. Of course, it is nice to have meaningful people around, but they will be more useful as mentors and strategic sounding boards, given their insight and experience.

Don’t compromise on skills: All said and done, you can’t really ignore skills, expertise and exposure. Complementary skills and viewpoints are always considered the greatest assets as they will help you achieve holistic goals without seeking outside help. If you are a tech wizard, it makes sense to have on board a creative thinker, a great marketer and a customer care expert who can run other departments equally efficiently. Also, you may not be looking for someone straight out of MIT or Harvard, but always make sure that one’s basics are strong and she is willing to innovate. Doing something different requires a different approach. So those who are ‘good enough’ in their job but unwilling to leave the beaten path may not be a cultural fit.

Don’t be vague about equity, vesting schedule: Be transparent about your equity shares, vesting schedule, exit terms and division of power in order to avoid future complications. At times, co-founders get into power struggles, resulting into bitter outcome. Only recently, Bal Krishn Birla, co-founder of the online hypermarket ZopNow.com, left the firm, saying he was wrongly ousted from the company. Most co-founders do it amicably, though, but it reflects badly on the start-up’s morale.

Finally, don’t deny your gut feeling: HR professionals call it halo effect, but it can also work when you are looking for a co-founder. Quite often, you may feel that a particular person fits the bill, but your gut feeling says NO. Pay attention if that is the case and ask yourself some basic questions to gauge your comfort level. Can you spend 8 hours a day with this person, working through thick and thin? Can you be friends outside work? Can you handle fights and misunderstanding? Do you find her trustworthy and reliable? Is she simply a go-getter or an ethical person with values that tally with yours? Give it some time, give it some thought. Just like a romantic liaison, a professional relationship also needs lots of understanding, nurturing and space. So it’s better to do it on a trial basis for some time and see how it works out. If both of you gel well, you can surely take the leap of faith.

Image courtesy: Flickr via squinza