If you ask any startup founder, they’ll tell you that running a startup is not as fancy as it looks. It requires extra levels of passion, resilience, focus, and determination. So as you figure out whether your startup needs a co-founder or not, these 10 tips below should guide you in making a thoughtful decision.
1. Know Your Why
Do you think you need a co-founder because Y Combinator says that one-person startups are tough and you’re more likely to succeed with a co-founder? Or are you scared to handle all the risks and responsibilities alone? Knowing your reason for wanting a co-founder will help you decide if you should actually get one or your first hire.
Being long-time friends with someone or sharing similar interests are not great reasons to get into a co-founder agreement. Also, a great co-founder complements your skills and does not replicate them.
2. Start with a Mini-Project
Collaborating on a smaller project before committing to a full-fledged startup could help. After running a series of mini-projects together, or even failed ventures, you will be more confident to decide if you work well together and if they are a great fit for your startup. The story of how Odun Eweniyi and Joshua transitioned from their first startup, PushCV, to launching Piggyvest is evidence that a co-founder relationship does not have to end with the failure of a previous business.
3. Define Expectations and Establish Structure
Setting clear expectations for each co-founder is crucial for avoiding misunderstandings later on. From the get-go, you must define everyone’s role with specific titles, responsibilities, and goals to ensure you are all aligned and working towards the same objectives. As your team expands, you must also map out who team members will report to and who gives feedback on what.
4. Identify Values and Cultural Fit
Your values define and guard how you operate your business. Therefore, whoever joins your team must have similar values. They must work with you in building a healthy culture for the long-term success of your startup. A misalignment in values can lead to conflict and according to Noam Wasserman’s “The Founder’s Dilemma,” 65% of high-potential startups fail due to conflict among co-founders.
5. Ensure Financial Alignment
Financial alignment is a critical aspect of finding the right co-founder for your startup. Now that your goals and vision seem to align quite well and they are also passionate about your idea, you must also get to know their financial intentions early enough. Are they willing to invest any funds into the business? Do they intend to start earning a salary from the onset? How much are they looking to earn? These are very crucial details to find out.
6. Embrace Communication and Openness
Throughout this process of finding the right co-founder for your startup, effective communication and openness are fundamental. In fact, these two pillars should apply to everyone else you hire in your company. Maintaining an open line of communication, being receptive to feedback, and encouraging transparency will strengthen the foundation of your partnership and foster a culture of trust and collaboration.
In Conclusion
Getting a co-founder is not an activity that happens in a hurry. It requires intentionality and a deep understanding of the specific needs of your startup. You must also remember that your potential co-founder is an individual with their own thoughts, ideas, and insights. So, you must be willing to listen to them and view things from their perspective. Avoid any form of unhealthy competition and settle disputes before they escalate.