As a new company your team matters- more than you might think. In a new venture, building a team should be a priority.
Team building is critical for several reasons. However, there are two that stand out. The first is scalability, meaning that until you build a solid team you will be forced to wear all of the hats. While this is something that almost all entrepreneurs do at some point, it’s not sustainable. At a certain point of juggling tasks yourself, the more you do the less efficient you become which is no way to build a business.
The second reason that you shouldn’t put off building a team for your startup is that your first team sets the example for everyone who comes afterward. If your initial team consists of serious go-getters, then your company will continue to attract ambitious people. On the other hand, when you go it alone you can be like a directionless leaf blowing in the wind, not knowing what to expect. If an ambitious team leads to more ambitious people coming onboard, what type of folks will an unsettled team be able to recruit?
Building a successful startup is all about having the right team that can take on opportunities when they arise. If you can manage to get your team right, you have already won half the battle. As an entrepreneur these are lessons that I’ve had to learn the hard way, but you don’t have to repeat my mistakes. Here are several crucial factors and proven strategies for building a team.
Your Company Is Only as Good as your Team.
Always remember this when hiring new members of your team. They are not just individuals working in your business. They are the business. Seek individuals from diverse backgrounds so that you are well-equipped to successfully handle every aspect of business without having to look anywhere else.
Here are tips for choosing the right team members for your startup:
- Be frank about your goals and expectations from the business.
- Offer them equity with a lock-in period apart from salary.
- Get your initial funding right to stay afloat for a few quarters.
- Do not hesitate to choose people who have failed earlier.
- Always lead from the front to set an example to your team.
- Have fun with your team once in a while.
- Be ready to let go of ideas that do not work.
Be Honest with your Team.
Building a team is not just about hiring few people to work in your company. You should look for a common connection when staffing your startup to strike the right chord within your organization.
Never hide anything from your team. Be open with them. Even if you are not sure about certain aspects of your business, make sure to convey the message to your team; this will ensure that they can trust you completely if they agree with your vision. If they’re unsure about your goals, it is better that they back out in the initial stages rather than making an exit in one of the later stages. Be clear about what you expect from them and from the business in future.
Offer Equity with Salary.
This is the standard practice offered by many successful companies all over the world. Do not hesitate to offer some equity to your initial core team. It will motivate them to put in those extra hours that are so critical to the success of any startup. However, make sure that the equity comes with a lock-in period so that you don’t lose out should teammates leave in the early stages. Keep salaries as low as possible in the starting period as it will help you manage without external funding.
Get your Funding Right.
Whether you plan to build a product-oriented or service-oriented company, you need resources for marketing and development. Any venture capital company prefers to have a team that can run on its own- that doesn’t have to over-rely on external resources. You must always ensure that you have enough funds to run the business for a few quarters without any hiccups. Even though external financing may come at a later stage, you should not depend on it in the initial stages of your startup. There are chances that it can be delayed due to many reasons and this should not affect your team in any way. Make sure you have enough money to pay bills and salaries on time.
Don’t Fear Failure.
Are you afraid of hiring people who have failed before? You should be happy to hire such people because running a startup is like walking on thorns, and such people will have valuable experience to handle failure. They do not immediately lose motivation, and this will be a big advantage when you are faced with some challenge.
Lead your Team.
You must always lead from the front and set a good example for your team members. If there is something that you do not want to do yourself and you tell someone else to do it, it will not be taken positively. Lead your team in every aspect. If you experience setbacks, be ready to take responsibility and motivate your team to get back to work and accomplish the tasks at hand.
Don’t Forget to Have Fun.
While running a startup comes with its own responsibilities, it should not stop you from having fun with your team. Do not let the burden of work overshadow hobbies and other activities. Also, motivate your team to enjoy their personal lives. It will help you to have employees with a relaxed frame of mind.
Few things are as crucial to an entrepreneur’s success as building the right team. There are many rewards for bringing the right people into your organization. Chief among them is creating a culture around which you can build the business, while creating a system that allows the business to run properly even without your direct input.