Starting out? Who do you need in your start-up dream team?

The decision to commence a startup is a watershed moment in an entrepreneur’s life. The great new idea has matured into a Unique Value Proposition and hopefully there is a business plan that suggests a viable business can be built. Now what? asks business strategist Alan Manly, author of The Unlikely Entrepreneur.

Now it’s the moment when you will seriously consider building your start-up dream team.

A leap of faith: employee number one

The hardest person to employ will be yourself. It is a leap of faith to leave whatever employment you have and risk your career and personal wealth on an idea. Not to mention putting your ego on the line with your public humiliation assured if the startup fails.

Having convinced yourself that the startup is worth the risk the next step is to decide the various roles that your start-up will need to consider and then in turn be managed by the person some will call crazy brave – which is you.

The first burden of any business is to establish a professional relationship with the regulatory authorities that cover your business.

Your first step

The startup entrepreneur is now confronted with the proverbial, “all roads lead to Rome” as was first written by Alain de Lille in 1175.  Modern businesses will relate this to the fact that the regulatory authorities will need to be advised of your start-up. At the very minimum, the omnipresent tax office will need to be regularly informed of your business activities.

This task is usually best outsourced to an accounting firm for tax and often other regulatory tasks. That’s hire number one solved. Fortunately, this can be on a part-time contract basis. Accountants are famed for not having a lot of personality, and as they are remote and outsourced they fit into almost any team. The startup is now functioning legally.

You’re running a business

“The business of business is business.”

This quote from Alfred P. Sloan, the mastermind behind the rise of General Motors during the 20th century, addresses the harsh reality that a startup is a business intended to be all about business as opposed to a hobby with friends.

The vital goal of a startup is to demonstrate the proof of concept behind the unique value proposition as discussed in the business plan.

This task is inevitability bigger than the one entrepreneur who conceived the start-up.

So who do you recruit?

Business first

Being mindful of the business of business is a business quote, it’s important to recruit to build the potential of the business plan.

Entrepreneurs love talking about how they understand the market, the weakness of the enemy and beating the competition, which of course justifies their pursuit of the start-up as a new business opportunity. They have fulfilled the advice offered to military leaders by Sun Tzu “if you know the enemy…”

The challenge that presents itself is the following the second half of the advice “…and know yourself,..”

Sometimes harsh reality needs to be confronted by identifying the best role for the startup entrepreneur to focus on.

During the startup journey great new ideas are often tested and shared with friends or family.

When the startup commences it is perhaps natural to be tempted to employ a friend or family member based more on association and enthusiasm for the idea than skill sets. Not offering a job to a friend may be the first leadership test for the startup entrepreneur.

A startup is not an extension of your social circle. Team members employed are not family and should your early recruiting be less than perfect, to save the startup you may have to sack that team member for the good of the business.

It’s best to not be in a position to lose a friend or strain family relationships.

KPIs are a startup entrepreneur’s friend when recruiting. They can always be asked, ‘do they believe they could achieve the KPIs in the business plan?’

Finally, one master stroke of really successful entrepreneurs is as per the quote below:

“Surround yourself with people smarter than yourself.”

Industrialist Andrew Carnegie once suggested that his epitaph should read, “Here lies a man who was able to surround himself with men far cleverer than himself.” Later stylised by Warren Buffet and Bill Gates.

This is most likely the biggest challenge for a confident startup entrepreneur.

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