BEST STARTUP TEAM MANAGEMENT – BUILD A STARTUP TEAM

BEST STARTUP TEAM MANAGEMENT – BUILD A STARTUP TEAM

❏ Today, I’ll talk about the best startup team management. You will learn how to form the best startup team. You’ll learn the pros and cons of being a solopreneur vs. having a team when you start a company. Read this closely, as making the wrong decision can cost you money!

One of my responsibilities as an executive coach is to help founders advance from the idea stage to the build stage. During the idea stage, you want to determine the critical skill sets the idea needs. If the concept requires building a financial modeling tool, you’ll need a heavy-hitter financial person.

If the idea requires a complex website, you will need an experienced web developer and likely an app developer. Do you have working experience in all these areas, including business development, legal, sales, team building, and leadership? No? Then, your idea will need a team to move successfully into the build stage.

Now, it is true that many, if not most, ideas occur to a single person, not a team. So, the idea stage typically begins with a single person. But please remember what I’ve previously said: an idea without action has zero value. Once you have determined that customers will pay for your solution to their problem, you need to begin assembling your team. Customers will pay for your solution to their problem, and you must take one of the earliest steps as you move into the “build stage” of company formation.

Startup Team: Importance [Best Startup Team Management]

Last week, in my post Minimum Viable Product: Why Startups Need an MVP, I wrote about why you should construct the MVP (minimum viable product) at the build stage. I explained that when seeking money from investors, not friends and family, you need a minimum viable product (MVP). Well, you should also have a team.

When venture capitalists hire me to assess a company, I always look for a team. I always looked for a team when considering angel investing. Why? Great question!

I’ve been a founder or co-founder of many companies throughout my career. Once I cemented the financial viability of my idea, I started building my team. With my team, I was most often able to create a successful company. I can only imagine starting a firm with a team behind me. There are many jobs to be done, many of which I could do better or have an interest in doing. I have my skills, and I am clear on what they are. I am also clear on what I could improve or have little interest in doing.

Best Startup Team Management: Who Do You Need? [Best Startup Team Management]

Since most companies start as solopreneurs, who should you first start looking to add to have the best startup team management? That’s the right question! I think you should start by making a list. Get yourself a mentor who has been a CEO or president. You have both “proven skills. Next, add to that a list of the “things you don’t want to do.” Note I said “proven skills at” and not “think will be fun to do.” Most startup founders have never been CEOs or presidents, but they think they should hold this role. Awesome! If you have the desire, you should give it a go. However, go and get yourself a mentor who has been a CEO or president successfully for many years. You don’t have time to make the same mistakes they did. It could kill your company.

I suggest joining a local high-technology accelerator program, as we have with the Tampa Bay Wave (www.tampabaywave.org). These programs can save you “months” in getting your idea into the Build Stage and onwards into the Launch Stage. You don’t know what I mean by those phrases. It would be best if you learned them. Click on either to learn more.

Now it’s time to fill out the rest of your team. For discussion, I’ll assume you are forming a high-technology SaaS company. These are the roles you’ll want to fill immediately:

• Bookkeeper/Accountant (1)
• Lawyer (1)
• Software Developer(s): UI/UX (1-Frontend); Database/Backend (1)
• Salesperson (1)
• Marketing Person (1)

Many of you may be surprised—I have a bookkeeper and lawyer listed. Many will also be surprised that I listed them in the first two positions. This list is not intended to be an “order of priority.” I list them because they are crucial to getting your company started correctly.

Startup Team: Why These Roles First? [Best Startup Team Management]

After your role, who is the best startup team management member you should add next? We are going to assume that your plan for your company is a success, right? If so, it will need funding and proper formation documents. Even if you buy a computer or supplies, don’t pay for them out of your checking. Set up a business checking and savings account at your favorite bank. There’s a good chance that it will be free if you have your banking there. I use Wells Fargo Bank, which didn’t cost me a dime. However, you need your business formation documents, including an EIN, to do so. That means you need a lawyer.

Startup Team: But Lawyers are Expensive! [Best Startup Team Management]

Yes, lawyers can be expensive, but what is more costly is not creating the proper business entity formation documents. You want to make a good decision with Google or business book-bought entity formation documents. Knowing whether you should be an LLC, SMLLC, C-Corp, S-Corp, or partnership can be complicated. Also, you have to determine the best sub-category for tax status.  If you mess up later on, you’ll wish you spent $250–$1000 and “done it right.” Legal work is a part-time outsourced role.

Startup Team: Why Do I Need a Bookkeeper? [Best Startup Team Management]

Yes, I know you are not collecting revenue, but you are spending money, even in small amounts. If you set up your “books” from the beginning, you’ll start tracking your expenses. You’ll look more “professional” to potential investors. You’ll begin to learn about terms you’ll need to understand as the CEO: the Balance Sheet, Income Statement, Statement of Cash Flow, and many others. As CEO, you don’t need to be an “expert” at doing the financials, but you do need working knowledge. A bookkeeper using Xero Accounting can handle payroll and accounting all in one package for $20/month plus $50-$100 per month for their time. Do you want to spend your time doing accounting? Bookkeeping is a part-time outsourced role.

Startup Team: Two Software Developers Plus Marketing? [Best Startup Team Management]

If the primary touch point for your paying customers is your website or application, then you better get it right! You will need skilled people in both the fields of marketing and software development.

In software development, “coders,” as they often refer to themselves, often specialize. They refer to themselves as “frontend” or “backend” developers. The skill is very different and takes years to “master.” You can find individuals who do both, but they will often cost you the same as hiring two specialists. The front-end person will work with your marketing person. It’s their combined responsibility to get the look, feel, message, and usability of your website correct.

Initially, outsource both marketing and software development. You are initially hiring these roles as “contractors.”. Hiring a person as a contractor first can help you determine if you have found the right person to turn into an employee. Be careful of state and federal laws. Your bookkeeper or accountant can help here, along with your lawyer.

Startup Team: What Do You Do as CEO? [Best Startup Team Management]

The only correct answer, IMHO, is “Hire, Lead, and Keep the Company Funded.” Hiring the right core team is your responsibility. Your responsibility is to ensure they understand the mission and are working towards it together. Keeping the company funded is your responsibility. If this isn’t the type of work you will enjoy, take another role and start looking for a CEO.

Startup Team Member Not Automatically Co-Owner [Best Startup Team Management]

In next week’s post, I’ll discuss why working in a startup doesn’t “entitle” you to stock in a company.

Conclusion [Best Startup Team Management]

I hope I have convinced you why every startup needs to know the best startup team management to build a successful, fundable company. Build the right team, and you’ve graduated from the idea phase to the early stages of your company’s build phase. Congratulations!