Building a business is hard because there are always known and unknown problems that will come up. Any company that wants to face challenges must have a strong foundation, and that starts with the right founding team.

The founders are very important. It is one of the most important things for a business to grow. If investors don’t trust the founders, they won’t put money in. Creating a perfect founding team is an art. Here’s what we think makes a great founding team that helps your business grow. For more insights from experienced entrepreneurs, sign up for our EWOR Platform and gain access to over 17 courses and a plethora of resources.

What Makes a Good Founding Team?

A founding team is a group of people who work together toward a common goal. They all agree on why they’re doing this and what they want to achieve. Also, they need skills that go well with their business plan and the industry they are in.

Co-founders on Board

Entrepreneurs often don’t bring in enough people at the beginning. In general, teams whose co-founders have worked on several teams before tend to perform better. Foundr looked at a few successful startups and found that 2.09 is the best number of co-founders. This could be because it can also cause problems. When teams are too big, it can be hard to make decisions and people might not put in as much effort as they should.

Characteristics of Efficient Co-founders

Having a co-founder who has worked as a founder or a co-founder before may make the chances of success and growth of the business much higher. People on the team who have worked in senior management before also have a big positive effect. If there are overlapping past affiliations, co-founders who have worked together at the same company might have better ways and more knowledge of how to work together.

Role of Diversity

If you are in a competitive environment competing with industry incumbents, then having a more diverse team will tend to do better. Having a technically focused team might not improve your chances, but if you’re in a cooperative industry, having a more technically focused team focused on getting your innovation done and completing the product development can be advantageous.

The functional diversity of the founding team also tends to be associated with higher performance. Functional diversity means the knowledge of different available roles you have on the team. These could include engineering sales marketing, finance operations etc. Having a more diverse founding team is less important, and having a more technically focused founding team in competitive environments will give you a significant advantage. 

Outstanding CEO

All founders are important, but the CEO who started the company is even more important. As the name suggests, the CEO, or Chief Executive Officer, is in charge of leading the team. A startup’s founder and CEO set the vision, the tone, and the way things will be done. The CEO decides what the product is, how to motivate the team, and how to get money. If you have a great CEO and a good team, you can probably solve most problems. If you have a good team but a bad CEO, it won’t work.

Investors and the Growth of the Business

You can find investors in several places. One of them could be at your school. Angel investors or venture capitalists could be a second group. You could ask professors in your field if they know any former students. It could be people in your professional network or past co-workers. It could also be a recently successful business owner in your field who started a similar business and just sold it. 

Investors Looking for Certain Founding Team

Balance 

A team will likely have a technical co-founder, a business co-founder, and a design co-founder. Someone who is good at marketing and social media is also helpful. Rarely does one person have all of these qualities. The first thing they want is a good mix of co-founders with different skills.

Experience  

Having someone on your team with management experience or who has worked at a startup before also seems to help your chances of getting venture capital. You might want to bring someone on who has worked in a certain part of the industry you are interested in. They could help network because they already know the industry and what customers want. You should be careful about the skills you bring to the team and how they work with each other and with the team as a whole. 

Passion  

Are you passionate about this idea? Do you have experience with it? Investors often ask why you started this business. What exactly is the point? The reason they ask you that question is to find out a little more about what you’re interested in. Do you care a lot about this issue and have personal experience with it? If you do, your chances of succeeding are higher.

Conclusion 

You want someone you can work well with, so this may be someone you’ve worked with in the past, but it might also be someone new. You want the best person for the job, but you want to know that you can work well with them. Many teams may do better when you combine a creative visionary with someone who’s more down-to-earth in operations. People with a similar vision may do well in a small startup environment, but ideas tend to pivot and evolve as they grow. The key is that you would like to search for people with whom you would work well together. 

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EWOR Team

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