Your business team is one of the most important ingredients in achieving business success.
Most successful new businesses owe much of their success to team building and the skills and experience of their management team. Investors will seldom fund businesses unless they have a well-seasoned business team.
Oftentimes, a founder of a new business startup does not have sufficient skills and resources to progress to start their new business.
Too often, a company founder will have significant gaps in knowledge and skills that are required to go from a cool idea to a fully-developed company. They may be good at product development but don’t have a clue about raising capital, building an organization, manufacturing a product or about marketing and selling it.
Many business founders’ financial resources are woefully inadequate for bootstrapping their company’s early needs. In addition, most don’t have sufficient business contacts for raising capital or to create important business alliances.
One way to build your business team is to hire people who fill in your skill and knowledge gaps.
If you are a founder of a new business startup and you have a lot of capital, you can often hire people with the special skills you need. The big advantage of this option is that you don’t have to share ownership and control of your company.
Another option for attracting experienced business team members is to offer them an equity position.
Bringing partners into your business can provide you with the financial and human resources you need to accomplish your business goals. One advantage to having partners is that they are usually more motivated because they have an ownership position and often a financial stake in the business.
Another reason to bring in partners is to provide psychological support. In most cases, a startup business will be like a giant roller coaster ride. One minute you’re floating on top of the world, and your future looks bright and rosy. The next day you can receive bad news that makes your company’s future look dark and hopeless. It is during these tough times that it is great having someone else to share the burdens and to brainstorm solutions with. Good business partners can make the difference between success and failure.
How to avoid costly mistakes when you look for partners to join your business.
Bringing partners into your business has many potential rewards. However, your blissful honeymoon can be short lived if you aren’t careful. The following are some things you should avoid when looking for business partners.
Avoid bringing in partners that have a lot of overlapping skills or business contacts.
Businesses that have partners with lots of overlapping skills and contacts usually result from people looking for potential partners in their network of friends and family. They do this because they already have a high level of trust with these people. This is often a mistake, however, because it usually results in a smaller pool of skills and business contacts than what they could achieve by looking for partners outside their social group.
Partners that are friends or family members can be problematic.
Bringing friends and family in as partners or employees can also sabotage your business. The reason for this is because it is difficult to get rid of them if they are under-performers or if they turn out to be grossly incompetent.
The best potential partners are people that you’ve worked with in the past.
When you’ve worked with someone in the past, you and they know each other’s skills, strengths and weaknesses. You also can be confident that they have a good work ethic and will be loyal to you and your company.
The next best option for finding a partner is to get a referral from someone in your business network.
In many cases, you may not have the luxury of having worked with someone that has the needed skill sets you urgently require to bring your company forward. The next best option is to try to find a referral from someone in your business network. Maybe they know a perfect candidate that is hard working and has the necessary skills, experience and personality for the job you are trying to fill.
A trial period is recommended before you offer an employment contract or a partnership position in your company.
Regardless of how you find a partner or a critical employee it is often a good idea to have a trial period before giving them stock, stock options or an employee contract.
One way to determine if a person would be a good partner is to initially hire them as a consultant. During this trial period, you can then evaluate if they’ll be a good fit for your business team. If they pass with flying colors, you can then approach them with a partnership offer or an employment contract.
NewBusinessCreator.com has several listing sites that can assist you in building your business team.
EmployAPro.com is a listing site whose primary focus is to connect skilled workers with startup companies and new businesses. People visiting this site are searching for more than just a salary. These are entrepreneurial spirits like yourself who wants to get involved in an exciting new business opportunity.
NewBusinessMarket.com is an excellent website for locating a sales agent. On this site you can create a sales agent job posting. Sales agents looking for new opportunities also advertise their services on this site.
NewBusinessTrade.com is a listing site that enables entrepreneurs to use equity, future royalties, deferred payments or a percentage of sales to obtain a variety of things including attracting key personnel. Skilled workers that visit this site are looking for these types of opportunities.
On NewBusinessTrade.com, it would not be unusual for you to post a job listing that asks a potential employee or freelancer to forgo up-front fees for a significant equity position or for future royalty payments. A low starting salary, with a promise of a significant pay raise after completion of the next round of funding, could also be offered. What you are willing to trade for someone’s participation in your business is really up to you. What is offered in your job posting is only limited by your imagination.