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Every startup needs a professional team to become a profitable business. A strong and integrated team building process can be the key to success. People who are selected as team members, form the culture, values, and components of a startup. Different studies have shown that success in business is only 49 percent having a great, flawless idea but the remaining 51 percent depends on the careful selection of the executive team to implement that idea. So it’s not out of the question to say that a startup’s success is based on team building. In this article, the Retiba editorial team introduces you to the details of the third reason why startups fail.
Lack of a good team; the third reason why startups fail
Building a professional and efficient team is not easy. Looking at the research on unsuccessful startups, the importance of this issue becomes more apparent, as statistics show that “not having the right team” with 23% is the third leading cause of startups failure. In the process of team building, several issues must be considered. Subjects such as required specialties based on the business outlook, finding people with good moods at work, diversity in the work team, motivation and personal goals, etc.23% of startups fail because they do not have the right team.
Having a business model and more important, a proper analysis of the business model is a vital step in achieving the defined goal. It has been said a lot that the motto “hire slowly and fire quickly” should not be forgotten during the team building process. Emphasis on having a slow recruitment process comes from the great importance of accurate, professional team building. Because it is hard to fire people after they join the team, in addition to legal problems, it is emotionally difficult to make such a decision. Especially if your startup is in its infancy and you haven’t experienced such a thing before. When it comes to layoffs, some startups may even take six months to fire the wrong person; a long time which can make your startup face some serious challenges. So before you meet any costs incurred by firing team members, it is better not to rush into hiring people and follow certain principles in the team building process.
As an entrepreneur, especially when it comes to fundraising, you may have heard many times that you will not be able to run your startup on your own, and you need to leave some work to others. While this is true, the team building process is one of the areas where your active and direct role is essential before you can build a team of trusted people.
What Does Team Building Process Mean for A Startup Business?
Team building can mean that you, as an entrepreneur, according to the ultimate vision of your business (the final plan you have for your idea, regardless of its startup phase), create a plan consisting the sections and specialties needed to achieve minimum success and invite the right people for each section to join your team. Some people liken the process of building a team for a startup to that of a sports team. In a sports team, members are selected based on their skills to be in a special role in the team, and their main priority is to perform their duties well. At the same time, they should have the ability to adapt to challenge they are faced with, in critical situations, having useful interaction with others, and do their best to achieve a common goal with other team members. They are also constantly practicing, training and learning to improve their performance. All of this also applies to team building in a business.
What are the first things you need to know about your startup team building process?
Weaknesses – Strengths
If we don’t say it is impossible, we can say with confidence that there is a little chance that someone can run a successful business by their own. As an entrepreneur, you need to know your skills and weaknesses well in the first step of the team building process. It is important to know what your specialty is and for which skills you need to have a skilled worker. Because it gives you the knowledge you need to start a successful team building process.
Key Specialties – Priorities
In the team building process for a startup, it is often recommended that you look beyond the startup phase to your business and define roles. But keep in mind that not all of these maps are needed at the beginning of the way, or that you will be able to integrate them at the beginning and on a small scale of business. Defining roles that are not needed from the first and inviting experts to do them is a failure more than an achievement. Because that person, with useful expertise and relationships, gets tired of not being challenged, and soon looks to change the situation and maybe would get out of your team. So in the team building process, you need to take a good look at the specialties you need. “Nothing is worse for a startup than choosing the right resources at the wrong time.”
Social Skills – Personal Characteristics
Another thing to keep in mind is to build your team based not only on specialized skills but also on individual characteristics and social skills. It is important to have a group of professionals who are able to work in a team environment and interact successfully with each other to achieve common goals. Don’t forget that people’s personality is as valuable as their expertise in a team and it determines that, in difficult situations and when a you face with a problem in your startup, how they react. It is vital to choose people who view each failure as a challenge, do not despair quickly, and do not display negative energy.
Don’t Say Yes to A Team Full of Idea Generators
In your team building process, try to find people who can get the idea, implement it and finish it. One of the most common traps that many startups fall into, is having a team full of only idea originators who spend time thinking and ideating are not practically able to lead an idea along the way and complete it. In a team, in addition to people who ideate, as masterminds of the team, it is important to have a group of team members with the ability of finishing the job.
Having a proper perception of the Company’s vision
In the team building process, spend enough time to find and choose team member who can have a clear perception of your mindset about the future of your business. Remember that you need to select people who will make a proper understanding of your target market, who know how to implement your ideas and turn them into a real business.
Diversity in team Members – But with Common Values
When it comes to personal characteristics in the team building process, you should consider diversity and adaptability in a good balance with each other. We know that having team members with different characteristics will bring you noticeable benefits. Since due to their different experiences and backgrounds you will be able to look at things from different points of view. But considering your final main goals and core values of your business, you need to find members for the team with similar values to you so that you do not need to spend time resolving fundamental disagreement along the way.
There is an old quote that says, ” One Bad Apple Spoil the Whole Barrel.” Having only one member with a negative energy who always shrug off their responsibilities and slake off, backbiting about their colleagues, or even having someone with all the right characteristics that is in the wrong place, is enough to destroy a team. In addition, positive communication and gaining customer trust is really valuable but very time consuming and improper behavior from your employees can easily ruin all your efforts. So in order to have professional team members who are skilled and compatible with the culture you have defined for your startup, it takes a lot of time and money. Keep in mind that the final goal in building a team is to have an active team which its members interacts dynamically with each other who do their job in a way that no one else on the team can do. Finally, keep in mind what Steve Jobs once said, “It doesn’t make sense to hire smart people and tell them what to do; we hire smart people so they can tell us what to do.”