Putting together the best team for your business is anything but
simple. Starting day one you want to find the right partners, if
any, to embark on a long-term journey. This doesn't stop at
seeking the right co-founder(s), if any, to join you in your
endeavor. It continues into setting up the governance and control
of your business in terms of having a diverse and qualified board
of directors or board of managers and proper upper-level management
and officers to, among other things, manage the company books and
records, day-to-day operations, product and service development and
engineering, as applicable, and sales and marketing.
At the start founders should ask partners what their expectations
of the business are and the expectations of the partner roles.
Everything should be on the table and partners should be agreed as
to expected time commitments, roles and allocated responsibilities
based on the strengths of each partner. Having the right team will
mean the company has the edge necessary to succeed and also to
appeal to investors or acquirers, if desired or required. This
takes into consideration experience and a shared passion for the
company goals. That sounds simple but it rarely is. Key partners
and key employees should have similar passions for the company
vision, especially since startups often confront significant
challenges and pivot points along the way. That vision should
relate to the problem that's being solved by the business- the
distinguishing solution- the product or service that will make the
business stand out from others in the same or similar competitive
landscape. A passion for solving the problem rather than a strict
focus on an initial vision for solution is important. Startups
often need to shift as they navigate the market and receive
feedback from the market. If the business is not solving a problem
or providing something others are not providing by way of solution,
it will be harder for it to succeed. This may mean a product that
stands out among the rest or an angle or brand that has some other
unfair advantage over its competitors. These are concepts that
early partners and early employees should understand and align on.
A team that is dynamic and covers multiple areas of strength will
be better suited for proper adaptation to market challenges and
everyday business.
At Rogoway Law we regularly help
companies make decisions about efficiently
structuring their businesses and setting up their teams for
success, including, without limitation, advising on the method and
manner of issuing equity and creating employee and consultant
incentives; suggested board composition matters; and suggested
officer characteristic and team matters; as well as
compensation-related and title-related advice.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.