Whenever you think of a start-up, the first thing that comes to mind are the founders who have a single-minded vision to see their idea come to life. Their drive and passion can no doubt make a lot of difference to the start-up. However, the success of a good start-up depends on the kind of team the founder(s) put together, who have the same drive and passion as the owners of the business.
According to a recent study by Rotman School of Management, the success of a new venture often depends on the ability of the founder to attract a great team around him or her. Like billionaire and founder of Alibaba Group Jack Ma says, “Find the right people, not the best people”. Forming the core team is one of the most crucial goals of the founders when setting up the start-up. As an entrepreneur, following are the four things you will need to keep in mind while doing so.
Transparency is crucial: From the word go, you need to be honest with your team/employees about what’s happening in the business. While that is easy to do during happier days, it can get tough when things start to take a downturn. Don’t sugarcoat financials and keep them abreast of the financial health of the company. Likewise, if you encounter problems like delayed salaries, you should have a clear explanation about the reasons to assuage employee concerns. Be clear about the team goals and confront frustrations head on rather than waiting for it to pass.
Pick the right team: Entrepreneurs need to understand that it is not just about innovation, but also about implementation. In order to pick the perfect team, you will first need to identify the weak spots or skillsets that your company lacks. Then, look for potential candidates who can fill in those gaps, with relevant experience. Persuade them to join your team and make a formal offer. As with any process, continuously assess your team structure to ensure you have managed to plug any knowledge gaps.
Involve everyone: Communication is a very critical tool for entrepreneurs. Companies are very wary of sharing sensitive data internally. Today, founders will gain more than lose while articulating results, news and data with their teams across all levels. It is when people are able to buy into the company’s vision that they are able to be more receptive to the founder. In the early stages of a start-up, the job roles of employees are often not clearly defined. You should communicate to the team about the need for flexibility.
Empower the team: If you have experienced employees who have worked together for a long time, then in a start-up it will boost the team’s ability to start quickly and smoothly. If you really want to make your team efficient, then you need to empower them. Allow the team to come up with their own goals and ambitions. Empowerment makes the team happy and highly productive. Employees also learn to think beyond their day-to-day work and think long-term.
It’s not always going to be easy to do, but it’s absolutely the most likely factors that will determine the success or failure of your start-up. You don’t have to install a table tennis table in the break room or start an employee book club. You can make your employees happy when you make them feel important, engaged, and invested in the company’s success. The best startups not only know that, they thrive on it.