Being a lone entrepreneur has its advantage. You have sole ownership of the company. You get all the profits. You exercise all the power. But along with this is the disadvantage of inheriting all the expenses and problems. Establishing an entrepreneurial team that is composed of at least three members simplifies and makes running a business more affordable.
Entrepreneurial teams are the current trend among start up entrepreneurs who want to penetrate a demanding market. Given that they have to dish out more capital and manage bigger operations, entrepreneurs find that they can be more effective as a group. Collaborative decision making by teams have proved to be more advantageous as biases are countered when making business decisions.
But then, the creation of a strong and successful entrepreneurial team can be tricky. Some entrepreneurs are less lucky at finding the most suitable partners and end up disheartened. If you are an aspiring entrepreneur looking to get associates, don’t be afraid. Like most endeavors, there are ways to go about it so that you get the best results.
1. Recognize what talent/skill you need. Skill will lead you to the right person.
In business, you should not pair up with someone just because they are your family or your friends. This will give you little benefit and even loyalty is not ensured. Know what your needs are for the business you’d like to establish and base your partnership criteria on these. For example, if you want to put up a restaurant, you will need someone who cooks, someone you knows hotel and restaurant management and someone who can track finances. If you are the one who is familiar with accounting, then you have to partner up with a chef and with an HRM graduate that has accumulated extensive experience in his/her field. This is basic and should always be the first thing you consider for partnership.
2. Assess commitment.
When you have found the right person, find out to what level is his/her commitment to the business. There are working partners and absentee partners – I guess I don’t have to explain which is more preferable to team with. Ultimately, teaming up requires people to work together in order to achieve a goal. If one member of the group does not participate, and is not willing to participate, then it’s no use to have him/her as part of it.
3. Define responsibilities and profits.
As partners, all of you will share the responsibilities towards the business. To avoid overstepping or burdening each other, it’s best to establish which responsibilities are carried out by who and which partner will take over in case the one responsible is absent. This will make your team more dynamic and more productive, as well as less vulnerable to power struggles. In addition, determine the shares that each member of the team gets from the income before the onset of the business.
These are just starters to building an entrepreneurial team. The rest of the steps are discovered along the way. Certain flexibilities and sacrifices may be required as the team matures. But if it is founded upon these three, it’s hardly a possibility that the team will break.