Rick's Startup Whiteboard #2: You Need Partners, Not Employees
Submitted by Rick Borovoy on October 7, 2009 - 8:41am.
Welcome to Episode #2 of Rick's Startup Whiteboard (the video is at http://techtv.mit.edu/videos/4106-ricks-startup-whiteboard-episode-2-ear... if it's not showing up above). This one focuses on the importance of working with partners -- not employees, not contractors -- when you're the pony-diving stage of a startup project, still trying to figure out the key pieces of the puzzle (see episode #1 on pony diving). Personally, I learned this one the hard way in a start-up. We contracted out the design of our next generation product and wound up on the rocks. There were a lot of accusations and alibis, and a distressing lack of "we're going to keep at this until it works". Lesson learned: when the project is in the early stages, and still involves as much problem-finding as problem-solving, you need to work with people who have as much at stake as you do.
When have you been on the right or wrong side of this?
Buy-in
Nice episode, Rick!
You really hit at the heart of what in other contexts would be called "buy-in". Even if you do have employees instead of partners, those employees have to be committed to the idea of the product and really clear on their role. They have to have buy-in. I'm sure everyone out there can think of a time they had turnover on their office and things fell through the cracks because people weren't clear on who does what, and that's because they were committed to what they think their role is rather than to the product.
I like the use of "alibis" too. A lot clearer than, say, "excuses", because with an alibi, the person genuinely believes something wasn't their responsibility.
Vision and execution
Even if you have buy in, if you don't have a solid understanding of what needs to be done and how it needs to be done, you can end up dead in the waters.
A start up should have a single consistent vision of where they are going. If you have employees and they understand the vision, they can help you get there. If you have a partner that has a different vision than you do, he can kill you quicker than an employee.
You can always replace an employee while replacing a partner is a VERY tough thing to do.
Taking on partners should be considered carefully. They should have a solid understanding of where the business is going to be and how to get there. They should be on the same page you are. And you should have regular and consistent feedback meetings (quick and to the point) to make sure you are on the same path.
Employees require more maintenance on your part but partner selection is much more critical.
Scott
http://www.linkedin.com/in/scottlovingood
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