MODULE 3: CO-FOUNDER RELATIONSHIPS
DO I DO THIS ALONE OR GET A CO-FOUNDER?
- USUALLY PEOPLE END UP WITH CO-FOUNDERS BECAUSE THEY CAME UP WITH THE IDEA TOGETHER
- PEOPLE WILL USUALLY GO INTO BUSINESS ALONE BECAUSE THEY POSSESS ALL OF THE ELEMENTS THAT WILL BE NEEDED FOR THE BUSINESS, I.E. THE TECHNICAL KNOW-HOW, WHERE THEY WILL NOT NEED TO BRING IN AN EXPERT
- THE DECISION AS TO WHETHER TO DO IT ALONE OR WITH A CO-FOUNDER IS USUALLY SCENARIO-BASED
ADVANTAGES OF A CO-FOUNDER
- LEADS TO DOUBLE THE OUTPUT OR HALVES YOUR TIME, BECAUSE EVERYTHING IS SHARED INCLUDING TIME
- YOU CAN CONSTRUCTIVELY ARGUE WITH SOMEONE WHO UNDERSTANDS THE BUSINESS AS MUCH AS YOU DO, I.E. PIVOTING, PROBLEM-SOLVING, HIRING THE RIGHT PEOPLE
- THIS PROVIDES YOU WITH PERSPECTIVE YOU WOULD NOT OTHERWISE HAVE HAD
- IT ALSO PROVIDES YOU WITH INTELLECTUAL AND EMOTIONAL SUPPORT
- TWO HEADS ARE BETTER THAN ONE, PROVIDED YOU GET THE RIGHT CO-FOUNDER
HOW TO IDENTIFY A CO-FOUNDER
- WHAT IS THE DECISION-MAKING MATRIX USED?
- DO YOU LOOK FOR SOMEONE WITH A DIFFERENT SKILLSET TO YOU OR IS IT ON A PRINCIPLE BASIS?
- THE ADVANTAGE WITH HAVING DIFFERENT SKILLSETS IS THAT THERE IS NO CLASHING OF ROLES AND ARGUMENTS REGARDING METHODS TO BE USED WHEN APPLYING THE RESPECTIVE SKILLSETS
- THE DISADVANTAGE WITH HAVING THE SAME SKILLSET IS THE POSSIBILITY OF DUPLICATION IN WORK DONE
HOW TO ESTABLISH ROLES AND RESPONSIBILITIES OF A CO-FOUNDER
- AT A VERY EARLY STAGE, ALLOW EACH OTHER TO TRY AND DABBLE WITH DIFFERENT THINGS SO AS TO MEASURE EACH OTHER’S ABILITIES, STRENGTHS AND WEAKNESSES
WHEN IS THE RIGHT TIME TO TALK EQUITY?
- WILL THE SPLIT IN EQUITY BE BASED ON ROLES?
- YOU MUST KEEP THINGS FAIR, TO AVOID ANIMOSITY IN THE BUSINESS WHICH WILL IN TURN NEGATIVELY AFFECT THE BUSINESS AS A WHOLE
ESTABLISHING WHEN TO PARTNER WITH A CO-FOUNDER
- DO NOT GET A CO-FOUNDER FOR FUNDING PURPOSES
- YOU NEED A CO-FOUNDER BECAUSE YOU NEED ANOTHER ENGINE THAT WILL GIVE YOU AS MUCH AS YOU ARE GIVING
ADDRESSING NON-PERFORMANCE
- BE COMFORTABLE WITH HAVING UNCOMFORTABLE CONVERSATIONS FROM THE BEGINNING
- ADDRESS THE ISSUE, WHATEVER IT MAY BE, IMMEDIATELY
- FOSTER A CULTURE OF TRANSPARENCY
HOW TO HAVE DIFFICULT CONVERSATIONS
- SPEAK ABOUT MONEY
- DISCUSS THE ROLES THAT EACH MEMBER WILL BE PLAYING
- ESTABLISH WORKING HOURS
THE PRO’S AND CON’S OF RAISING FUNDING AS A SOLOPRENEUR AND AS CO-FOUNDERS
- RAISING FUNDING WITH A CO-FOUNDER HELPS WITH SPLITTING RESPONSIBILITIES
- WHILE THE ONE CO-FOUNDER CAN FOCUS ON RAISING FUNDING, THE OTHER CO-FOUNDER CAN CONTINUE TO FOCUS ON THE OPERATIONS OF THE BUSINESS
- RAISING FUNDING AS A SOLOPRENEUR PRESENTS YOU WITH THE DISADVANTAGE OF NOT BEING ABLE TO RUN YOUR BUSINESS AS WELL AS FOCUS ON RAISING FUNDS SIMULTANEOUSLY
- TO INCREASE YOUR CHANCES OF GETTING FUNDING FROM INVESTORS, YOU MUST ENSURE THAT ALL CO-FOUNDERS ARE EXPERTS OR AT LEAST QUALIFIED IN THE FIELD IN WHICH YOU OPERATE
- ABOVE AND BEYOND THAT, HAVING A DEPENDABLE FOUNDING TEAM HELPS WHEN STATING YOUR CASE TO INVESTORS OR FUNDERS
