This post was originally written for Create & Cultivate by me (Syama Meagher, CEO of Scaling Retail). Create & Cultivate Is an Online Platform & Conference Series for Female Entrepreneurs in the Digital Space. Its such a useful post, I wanted to make sure my readers saw it.
Many of us have a vision of launching a business with co-founder who is the perfect compliment to our right brain or left-brain selves. Strong creatives tend to seek business strength and vice versa, but actually finding the perfect fit can be more difficult than we like. This is largely because we 1. Travel in circles that tend to be more like us 2. Don’t understand our own personalities, weaknesses and core competencies 3. Are eager to find someone that when we do we say “YES” too quickly. There is a formula to finding the right partner and setting yourself up for success. Lets dive in.
YOUR INNER GAME
Your capacity to understand your traits as a leader is essential. Are you passive aggressive? Can you hire people well, but struggle with firing? Do you think you are always right? Maybe you have self-worth issues. Or, like me, maybe you are a work-a-holic and treat your business like it’s your first-born. No matter what your unique personality type, it’s critical to understand how you work and to be honest about it. Launching a business is not the time to work through your personal baggage, but you are the center of your business so these things do come up. You need to square away personal obstructions and work through anything that might keep you from performing at your optimum. I suggest making a list of how you like to work, what types of personalities you have worked well within the past, and what might someone else need to know about you to know if you are a good fit for them. Do you like to do things last minute but never miss a deadline? Your potential co-founder will need to know not to worry about your commitment.
“Launching a business is not the time to work through your personal baggage.”
Tweet this.
WHAT YOU BRING TO THE TABLE
Aside from bringing a great idea to the conversation you need to stack up your skill sets. I always ask my clients to make lists: what are they really good at, what would they like to learn, and what is something that they would have to hire out/have zero interest in learning. If you are a creative that struggles with business matters or vice versa it’s important to itemize the specifics. I work with a lot of clients that are creatives and need a business backbone, and let me tell you, you can be successful doing it on your own, but it’s definitely easier when you are working with someone who loves MS Excel if you hate it.
MATTERS OF MONEY
Who pays for what? With a biz partnership it’s cleaner if both parties can equally split liability and expenses. Not only does this keep things feeling balanced, but there is true shared ownership. If going 50/50 is not a possibility and you are looking for a co-founder to fund the operation, you might actually be looking for an investor. In my experience having a co-founder that’s really an investor can muddy decision-making processes. A co-founder should be able to bring something beyond money to the table. They should have skills and expertise that will relate directly to the day-to-day operations. If your co-founder is unable to invest as much money as you are or nothing into the business it’s critical that you stipulate in your operating agreement how your investment gets paid back over time and if/when the company dissolves. At the end of the day this is about playing fair, doing what’s right for the business and yourself.
“Having a co-founder that’s really an investor can muddy decision-making processes.”
Tweet this.
DOING BUSINESS WITH FRIENDS & LOVERS
In theory it’s a wonderful idea to start a business with a friend or romantic partner. Working with someone you know you already like and have things in common can be very rewarding, but it does require knowing yourself very well to pull this off successfully. Before launching into a business idea with someone you care about make sure to ask yourself and him or her- why now? Why would you two be the best to do this together? What complementary traits do you have? Discuss how long you want to test the process and have a trial period together before committing to a contract. And yes, you will want a contract! Business amongst friends/lovers can still get ugly and you want to have a contract out of respect for you and them. The goal is to preserve the relationship and possibly launch an amazing business!
TINDER FOR CO-FOUNDERS
I wish there was Tinder for Co-Founders (kind of like Bumble BFF…). But as of now there are only co-founder sites that really focus on technology. Sites like CoFoundersLab, FounderDating, and Angellist are a few places to look if you are looking to start an ecommerce site, otherwise I suggest good old fashioned LinkedIn and reaching out in Facebook groups, friends and family. As you would on a first date, you need to make sure to meet your potential co-founder for coffee or a drink and not just trust the phone or email. You wouldn’t marry someone without really knowing him or her right? So why would you risk your financial investment working with someone you don’t know well. (Jessica Alba jokes that partnering up with her co-founder is like an arranged marriage.) I suggest dating around. Dating around means having lots of coffees and working on small projects with someone to test out the personality styles and core competencies. Think of it as an experiment. You could sign an NDA, but really, it’s not necessary unless you have a patent pending. Ideas are easy come, easy go, but execution is hard. You need a partner you can execute with that has a shared vision. Don’t expect your first couple dates will yield a co-founder! Be patient.