Running your own business is tough in the first place but doing it with the wrong people can make it near impossible.
Right now I am involved in a few start-ups and I am slowly learning the do’s and dont’s of handling a business. The one thing I have done right is associate myself with the right people and I think that is the biggest step. I have two businesses right now that I have partners in and when I came across this article about picking people to work with I thought it did a great job at summing everything up.
11 steps to pick the right person
- Talk about relative strengths, experiences, skills and weaknesses. Take the time to get a really solid feel for who’s bring what, in terms of operating capability, to the table. Move beyond words and explore actions.
- Define broader lifestyle visions and core values – You may be on the same page when it comes to the business, but to the extent possible, you also want to either be on the same page or be able to foster genuine respect for each person’s outlook on the role of the venture in their bigger lives and the value they expect to run both the business and their lives by.
- Share venture specific vision, long-term goals/desired exits – Have each person write a detailed concrete description of the long and intermediate term visions for the company and, if appropriate, the desired exit strategies. Do this on paper and DO NOT DISCUSS them until they’ve been committed to paper. Then print them out and swap papers. Doing it this way will keep each person’s vision their own, rather than pressuring one or both people to relent to the perception of the other person’s public, maybe more strongly argued position. From these positions, now the real discussion can begin.
- Check out resumes, references, online reputation and interests – As much you value your gut instinct, be smart and do your due diligence. You cannot imagine the surprises you’ll find.
- Explore desired roles, titles and responsibilities – Share not only the bigger vision, but the specific roles that you see each person taking on in the venture. Then see if they work well with the skills and abilities that person brings to the dance.
- Look at individual execution styles, systems vs cowboy orientation – One of the greatest sources of conflict between partners is not so much in what they want, but the “way” they go about getting it. We all have our own operating styles and approaches. Some work well together, others are like water and oil. So, talk about operating styles and see if they mesh.
- Reveal approaches to attracting and managing people – Just as operating styles can differ, so too can approaches to managing people. Share management philosophies, styles and how each of you have handled challenging situations. Make sure you both share at least a strong outlook on the role of people in the business.
- Understand risk tolerance levels and profiles – Some people are cowboys and others are anchors in a storm. Talk about risk tolerance levels and how comfortable each of you are taking and living chronically with certain types and sizes of risk.
- Explore nature of contribution: money, work, connections – Talk about exactly what each person is able to bring to the table. Then try to agree on the relative value of each type of contribution. This makes allocating ownership an easier process.
- Discuss readiness, timing and hard-line restrictions – Just because two people connect around a shared vision doesn’t mean both are ready to take action at the same time. Talk about readiness and timing and confirm that both people are at a point where they are capable of moving forward.
- Share what’s make or break and what’s open to discussion – Whether we admit it or not, we all have lines we draw in the sand. Sometimes they’re real, other times, they’re just posturing. When you’re dealing with someone you hope to share a venture with, try to keep posturing to a minimum, be forthright about what is non-negotiable and what is open to discussion. Excessive posturing can start off a relationship in a really bad place, so deal openly and honestly with those you hope to build a lasting partnership with.
So when deciding on who to work with take your time and go through some of these steps to try and avoid ending up in entrepreneurial divorce court.
