A Startup’s Most Valuable Asset: The Team
Startup ventures are exciting, dynamic, and risky. They require a balance between luck, skill, and timing. Of all the essential elements regarding startup businesses, there is one particular element that remains paramount: the team members.

For many “financially-deficient” (aka bootstrapped) startups, choosing the correct team members/founders may be the most important decision the young company faces. Despite this truth, it is all too common for startups to constuct their team with insufficient or unsuitable candidates. This type of behavior is not just harmful, it’s potentially deadly for a young upstart business.

I see many startups invest most of their focus on things like: marketing strategies, business name / logo, and market position — before ever really considering the composition of their startup members. The fundamental problem with this is simple: idea and strategies mean nothing with the wrong people in the driver seat. It is critical to place the correct individuals in the correct positions in order to achieve maximum efficiency. This becomes difficult as a startup begins developing ideas and executing particular strategies.
Here are a few aspects to consider when constructing your startup’s fouding team.

Is your friend the “right” choice? Friends are the easiest and most convenient individuals to bring aboard your startup venture. Friendly conversation does not necessarily translate into smart business tactics, however. Your friend may be a great person to bounce ideas off of, but not the right business partner. Take advantage of your friend status and mentally project them into a startup role. From all that you know about that person, think about a few scenarios:

* how well do they handle stressful situations?
* do they possess perseverance or do they stop at the first sign of hardship?
* are they trustworthy?
* how well do they communicate?
* how do they handle uncertainty or chaotic situations?
* what is their level of dedication or passion towards projects?

No money, no problem. Lack of cash is often considered a major startup obstacle. And while this may be true in most circumstances, it does provide an indirect benefit in the case of bringing aboard team members. Startups with little to no working capital are fueled by one thing: passion. Bringing aboard individuals with no promise of monetary compensation ensures that they are in it for all the right reasons. You can worry about salary and payroll after you ship your first unit.

Previous entrepreneurs welcome. There are certain intangibles one learns from operating inside the trenches of a startup company that cannot be learned anywhere else. This is why you should always look to bring aboard previous entrepreneurs given the chance. The company benefits greatly from the individuals’ prior startup experience and you gain a trusted business partner who understands the difficulty associated with launching a business venture.

The most important point to remember is this: your startup’s most valuable asset is its team members…so choose your partners wisely! Remember that at the end of the day, you and your team are the ones putting the ideas and strategies in place. It’s not enough to have an idea, you need the physical manpower to execute them effectively. A founding team needs to have the right balance of intelligence, innovation, and drive. In order to achieve the correct balance, your team members must share a common passion while working towards shared goals.

trueventures-teammembersI saw a great affirmation of this belief when I came across a particular venture capital firm’s website, and noticed their portfolio companies. True Ventures, an early stage tech venture firm, showcases their portfolio companies in a refreshing way. If you notice, all of their investments are accompanied with a picture of the founding team. Although it is just a picture, it establishes the old investment addage of: “We invest in individuals, not companies.” This is something that we as entrepreneurs hear, but sometimes overlook.