I was involved in a program called New Generation Business; a program meant to assist new startups to grow. It’s a program under the purview of the Ministry of Entrepreneur Development and Cooperatives Malaysia or better known as MEDAC. We have more than 1,000 startups in the 4-6 months programs. I was one of the business coaches and business advisory team members.
I would like to pick one area which I think might be very much related to the new startups or business founders to know, especially to the newly established business entities. It’s something about finding the right team.
Most of the owners will always look at the business potential, business expansion plan, marketing plans, projection cash flow and other areas in order to further enhance the business. They are right. Spot on. They are doing good in obtaining all the information.
However, all the business owners that I met and discuss during our business coaching session failed to plan the forecasted issues, forecasted problems and also the expected hiccups that they might face. Then when things turn sour and not according to their plans, the founders feel so stressed and failed to move on.
I told them that “Running a business is not a bed of roses even though you’re selling roses.” I did tell them that if they think they can achieve smooth sailing business operations, then they are living in a fantasy. So today I want to share a few 5 tips on how to plan to find the right team.
Behind any startup lies a great team setup and the formula applies to all startups as well as to accelerators, SMEs, GLCs and even multinationals. A team existed to allow great potential and help the company to grow and keep growing. It’s a continuous quest for improvement.
A strong and efficient team of any business entity, sports team or any team for that matter, starts with obtaining the right people on board of your company and those who value working toward a common goal, are goal-oriented, and respect the hierarchical structure that most businesses require
Be honest with the team member
Honesty is the best policy so goes the saying. Then we need to be honest with ourselves and with the team. Our team must be able to list down each member’s SWOT Analysis. We are not perfect and we have strengths and weaknesses. We should map out the founders’ strengths and weaknesses. Why do we need to do so? We need to look at the current status quo and the GAP that our company is facing in comparison to the goals and the roadmap of our company. We may face problems in the future if we do not address the issues.
Milan Kordestani, the Founder and CEO of Guin Record said in an interview in Rolling Stone magazine that we need to hire people whose strengths are our weaknesses.
You cannot be good at everything and the first step to building a team is recognizing what your biggest gaps are in what you’re trying to accomplish. Then it comes down to hiring someone you trust or can grow to trust. Trust is important because no matter how competent a hire maybe if you don’t feel comfortable delegating tasks to them, the hire was a waste.
Then we shall know the areas that we need to improve. It could be by having the right people to join or the founders need to undergo reskilling and upskilling training in certain areas. Nonetheless, we need to be honest again; we cannot be the Chief Everything Officer (CEO) of our company. We need to delegate and yes the delegation comes from the SWOT study of each member Vs the roadmap of the company. This SWOT is different from the company’s SWOT. The team members’ SWOT will be focusing on the individual skills set Vs the direction of the company.
Skills to match the business ecosystem
If you put the best eleven strikers such as Neymar, Messi, Pele and Cristiano Ronaldo in your football team as the analogy, you will establish a soon-to-fail football team. You may be thinking putting the best strikers in the world will make you a great team but it’s the wrong strategy.
So goes with your company. God has given each of us different skills and mindsets. As the leader of the company, you need to find the right skill set to run the manage the company. Failing to do so, will end up in having business problems.
You should look at your business canvas and study your business supply chain and ecosystem.
Divide the team – prioritise passion and potential.
Ordinary companies shy away from hiring based on passion, but in my personal opinion will be the best if we the startups find the right team members with strong drive and a high degree of passionate people.
For your information, setting up new companies such as startups will be full-time tasks that are stressful. Everything starts from zero. You can’t afford to pay as good as the market or industry base salary range but we do require longer working hours.
You want employees who truly believe in your company, not someone who views you as a stepping stone. Hence passionate people are needed to grow your company. However, passion alone will not bring the company to the next level. We need to recruit the right people with the suitable skills too.
Four main players – thinker, builder, marketer and seller
You need these core four people in your startups. A startup needs a leader, builder, marketer and seller. The thinker who is also a leader will identify opportunities, map out the direction, set business strategies, builds a team, and executes.
The builder is the creator of finding business opportunities, expanding the market shares, building collaborations and seek for more business potential via existing and new networks. Normally these two core people – The Thinker and Builder could possibly be the first two founders.
The marketer brings and boosts up brand equity, improves brand perception, increases promotions, establishes co-brands and brings more. Each one of these three roles has a unique skill and input that shape the overall venture and evaluation as well as translates customer insights into actionable plans based on their respective backgrounds and experiences.
Your seller must not only sell the product or services but often have to sell the startup’s personality and competency more than its product or service, and they sell this to key business decision makers across corporate hierarchies.
Our sellers ought to be able and be prepared to negotiate deals that will factor in all of the above. They need to decipher what their prospect’s motivation is, figure out how to close the deal on a winning note, and then execute their strategy.
Most importantly, they may be expected to do all this on their own, or with very little oversight or guidance.
What to avoid when building your team
Sometimes it is difficult to build the right team. We make mistakes during the recruitment process and bring the wrong people on board. The result: the startup suffers. Although not every process is failsafe, there are steps you can take to minimize risks. Don’t be impressed by a title and assume that a potential hire knows everything.
A potential hire needs to see the big picture. Not only will they understand their role in your startup, but it’ll keep them involved and excited. It is important to have respect for one another, but not compromise.
Speak out when something is not right and discuss these issues amicably. It’ll help you avoid major differences and misunderstandings, even splits in the future.
Startups are bootstrapped and team members are usually spread out all over the place or city. Communication is key, so reach out to them on a daily basis, even if it’s only for a few minutes.
You do not need to rely solely on email, as startups are dynamic and need faster ways to communicate. Implement conference calls, Skype calls, Google Meet, Zoom or even Whatsapp Video Call and other ways to have short meetings frequently. As you grow, your startup will go through different phases, so keep your team small for as long as you can.
Learn to identify these phases and you’ll be able to find the right person to take on those tasks. You might have the next million-dollar idea in your hands, but if you start with a weak team dynamic, this could be a definite deal breaker for your startup.
Remember, you’re in control, so take charge and build an all-star startup team.
Having said all that, there are no perfect theories and strategies to get you there. It took me 20 years and I’m still learning while writing this short article. The startup journey or any new business venture is a rollercoaster coaster ride.
As for me being a race and rally driver myself, I called it the sideways and drifting of business. It means you need to continuously counter steer your company and must be prepared to adopt and adapt accordingly. Many times, you may have to ‘wing it’. Just do it. Trial and error are one of the norms for startups but of course, we shall plan to mitigate the risk of failures. That’s why everlasting discussion and brainstorming are required. The dynamic nature is what makes it a thrilling journey. Seeing your vision turn into reality after putting in months or years of work is highly rewarding. The journey is as important as the destination. And the right team makes it an enriching experience. Remember, your company is only as good as its core team for startups.
