Where to find your cofounder
By: Aileen Gelb
Tags: Startup, Cofounders, Wasserman, Team

Continuing from last week, I’d like to share the next bit of wisdom I’ve learned from reading Wasserman’s The Founders Dilemmas. This week, we’re going to look into the different places where you can find a cofounder and discuss the benefits and challenges associated with each.

Where Can You Find a Cofounder?

There are a few options in regards to finding a cofounder. Wasserman describes these options as falling within “three concentric circles” namely the inner, middle, and outer circle. The inner circle is made up of people with whom the founder already has a relationship with and can include girlfriend/boyfriend, husband/wife, old friend, former co-worker, etc. The middle circle is made up of people with whom the founder has indirect contact through a mutual connection, which I will not focus on in this piece. Finally, the outer circle is made up of people met through an impersonal search process.[1]

The Inner Circle

The inner circle may sound enticing to most people. After all, why wouldn’t you want to work with a loved one or a former co-worker? You know you get along and can work together. Even this can have its challenges.

Family and friends

The good side of working with family and friends is that there’s already an established trust and familiarity. Beyond this, it’s often relatively easy to find a friend or family member who is willing to support you and help you follow your dream of founding a business. Despite the benefits, it is very risky to bring a close relationship onboard, Wasserman writes. Starting a business can be a very stressful and tumultuous time and it is unlikely that someone will have the skills and fortitude to withstand the stress simply because they are close to the founder. On the other hand, former co-workers have demonstrated a much more positive impact on a founding team’s stability.[2]

Former Co-worker

You may not necessarily be as close to a former co-worker as you are to a friend or family member, and the trust isn’t necessarily there in the same way, but going this route can lead to a more stable team in the long run. It can be easier to transition from one working relationship to another, as opposed to the reframing of the close personal relationship to a working relationship. It makes sense, after all. You’re already used to working with each other, you are aware of one another’s strengths and weaknesses, particularly within a professional context. Choosing a cofounder from the Inner Circle, regardless of whether it’s a friend, family member, or former co-worker, runs the risk of too much homogeneity.[3]

The risks of homogeneity

What does this mean? As we’ve written about before at UniFounder, it is wise to create a diverse team, can bring different forms of capital, and fit the necessary archetypes. This is because starting a business is hard work. It requires a vast amount of knowledge and experience that would be difficult for one person to have. Therefore, it is a good idea to bring in people who fill in the gaps that the founder is missing. This will be hard to do with the inner circle, who will likely have at least a similar background to the founder.

The Outer Circle

To find a person with the skill sets necessary to fill in the missing gaps, you may need to search outside of your personal contacts and utilize the Outer Circle. It may take more time to find the perfect partner and to develop the same level of trust and familiarity, but in the end, there’s a greater chance for success. But where can you look?

Using a platform like UniFounder

Luckily there are many matchmaking platforms out there that make it easy to find the person with the skills you’re missing. I’d highly recommend UniFounder a free service that allows you to look through dozens(?) of profiles to find your match.

Managing Expectations

Regardless of where you find your cofounder, you will have to be prepared for difficult situations. It’s inevitable; it’s a lot of work to start a business and it’s stressful and you’ll spend a lot of time interacting with your cofounder(s). Difficult situations can and will arise. Wasserman has a few key points of advice in this regard as well.

Don’t avoid it

It can be difficult to have a serious discussion with someone and at times it may seem easier to avoid it altogether, bite the bullet, and continue on. Don’t do this. The sooner you can communicate your problems and work towards a resolution, the better. Unless you are a person who truly can withstand everything, it’s better to have that difficult discussion when a problem is just beginning, instead of waiting until it’s unbearable and letting it all blow up.[4]

Have a contingency plan

Along that same vein, have a plan in place for what should happen if/when these situations occur. Decide beforehand what will happen if a conflict arises between you and your cofounder. This is especially vital in instances in which the cofounder is from the inner circle. It may be best to decide that the secondary partner steps down in the case of conflict, as opposed to the business dissolving or the couple splitting up. By having an agreement beforehand, you help alleviate problems when they arise and you are able to discuss things when you’re in a clear state of mind.

There are benefits and challenges in starting a business no matter who you start it with. Find out what works best for you and make sure you are able to have the difficult discussions before they become too difficult.

If you want to start a business with someone whose strengths play to your weaknesses, check out UniFounder.