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MenuI am looking for a principal partner (like a cofounder) to an existing startup. Any suggestions on a strategy for this ?
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Well, lets work backwards:
Structure is pretty simple: 4 year vest, 1 year cliff, for a percentage of the company that will match their commitment and unique contribution to the success of the venture.
Running it by them is pretty simple: Tell everyone you can about the problem, the assumptions you have about a solution, the vision for how your company can make some real money by solving a real problem. For each person you talk to, many will say, "That's nice, congratulations." And maybe one or two will say, "OMG, I want to be a part of that." Pick one of those.
So now, it's just down to Locating People: http://founderdating.com; http://meetup.com; http://startup-digest.com; Local University; snapchat.
Finally remember, 100% of $0 = $0.
Clearly it can get much more nuanced than this, and I'm happy to share some more strategies in each of these channels. But, end of the day, you just need as many at bats as you can find, and don't rush it.
FInding people who can be potential partners is an important step, but knowing who you are looking for should be part of your strategy. Just as when you are hiring you need to look for qualities that match your needs and also matches your preferences. Working closely with a business partner should not be painful (that does not mean there cannot be clashes).
Do you know your own strengths and weaknesses - not only technical and business but personal strengths and weaknesses? In Daniel Kahneman's 2011 book 'Thinking, Face and Slow' he discusses excellent information about how people approach thinking. If you understand your own thinking and decision making processes you might want to find a partner who helps balance your strengths and your weaknesses.
I recommend personality profiling and emotional intelligence profiling to help you sort your own performance strengths and weaknesses and consider who would be a good match to balance or counter-balance.
Certainly find someone who has the skills, qualifications and connections you need, but also remember that you have to work with this person and find someone who will enable you make the best decisions and take the most effective actions.
When evaluating a team member, there are a few key things to evaluate:
1. Does the team member have a complementary goal and ability to take on risk? If you are looking for a big exit, and your partner wants to make a nice living, your interests will not be aligned. Are they going to quit and work full time, like you?
2. Do all your team members have the skills to take the business where it needs to go? What's missing?
3. How connected are you to your suppliers, customers, sources of finance, accrediting bodies or other key relationships? Can your cofounder fill in those gaps?
Related Questions
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I have this social media idea,but no coding skills. How do I get someone to do the coding (cant afford to pay them) and not give away half of my idea?
Dilip was very kind in his response. My answer might be a bit on the "tough love" side. But that's for you to decide. My intention, just for the record, is to help you (and those like you) on your path to success. And that starts with having a viable philosophy about entrepreneurial-ism and business. And I'm going to answer this because I get asked some form / version of this question very frequently from newcomers to entrepreneurial-ism. The scenario goes something like this: "I have a great idea. It's amazing, I love it, and I just KNOW it's gonna make me a ton of money. But I have no money right now so I can't afford to (fill in the blank with things like "to build it / create it / market it / etc" or "to hire the required staff needed to work in my business to sell it / develop it / etc"). And I don't want to tell anyone about my great idea because I'm worried someone will steal it and make MY million / billion dollars. But I can't afford to legally protect it either... So how do I launch without the skills to personally create the product AND no money to hire anyone else to do that either??" The answer is ... You don't. Look - let's be honest. All you have is an idea. Big deal. Really. I'm not saying it's not a good idea. I'm not saying that if properly executed it couldn't make you a million / billion dollars... But an idea is NOT a business. Nor is it an asset. Until you do some (very important) initial work - like creating a business model, doing customer development, creating a MVP, etc - all you really have is a dream. Right now your choices are: 1. Find someone with the skills or the money to develop your idea and sell them on WHY they should invest in you. And yes, this will mean giving up either a portion of the "ownership" or of future income or equity. And the more risk they have to take - the more equity they will want (and quite frankly be entitled to). 2. Learn how to code and build it yourself. MANY entrepreneurs without financial resources are still resourceful. They develop the skills needed to create what they don't have the money to pay someone else to do. 3. Get some cash so you can pay someone to do the coding. You'll probably have to have some knowledge of coding to direct the architecture of your idea. So you will likely still have to become knowledgeable even if its not you personally doing the coding. (This is not meant to be a comprehensive list of options... And I'm sure some of the other experts here on Clarity have others to add - and I hope they do) To wrap up - Here's my final tip to you that I hope you "get"... It's FAR more valuable to have an idea that a very specific hungry crowd is clamoring for right now - One that THEY would love and pay you for right now - Maybe even one they'd pre-order because they just have to have it - Versus YOU being in love with your own idea. [Notice I didn't say "an idea that some as-of-yet-undetermined market would probably love"] I wish you the best of luck moving forward.DB
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If I have a business idea for a large company, how can I give it to them and mutually profit, without them just taking the idea and squashing me?
Probably not the answer you're looking for, but companies have so many unimplemented ideas that the likelihood of partnering to implement someone else's idea is really low. And besides which, the idea is not something that has much value in and of itself. If you're passionate in the idea, build it yourself. That's the only way you can have leverage.TW
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I have an idea for a start up, but I don't know how to code, whats the next step?
Hello, If you have time, I suggest that you learn coding yourself. That saves you money but takes a great amount of time to do. And if your interested, I'm a coder myself. You can give me a call and we'll discuss the details of your idea.GS
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Do I need to hire a "growth hacker" or "growth marketer?" What's the difference?
Anyone who calls themselves something fancy like that is probably one of the 99% in the industry that have no idea what they are doing and will make you hemorrhage money. Find a MARKETER with a proven track record and use them to build an empire. If you don't want an empire and, instead, want to make your friends jealous by bragging about "new hires," then hire a "growth hacker" or "assistant of hardcore development" or "rad visualization chairman" or whatever other stupid position all these failing startups get caught on.AM
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What companies have successfully implemented both B2B and B2C products or services? Which should I start with for the non-profit sector?
I would suggest the first question to ask is "what problem do I solve?" And of those people I solve problems for "who do I create the most value for?" In the non-profit world you need to add "How does my business help the non-profit run better and/or help the group the non-profit focuses on?" For example, if you've created a platform that drives donations, your company "has created a platform that helps you reach fundraising goals faster." What you don't want to do is market and sell to B2B and B2C audiences simultaneously. They have different ways of buying - a B2B audience needs to have their benefits quantified (using your thing makes me x amount more) - and it's extremely hard for a startup to be able to do both well. Better to start with one, execute really well and move into the other. Feel free to give me a call and we can dig into who your most valuable audience is.AV
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