Finding The Right Partner To Build A Company
What should you look for when seeking a co-founder for your start-up business?
Finding a business partner is not unlike finding a romantic partner or spouse. Entrepreneurs seeking co-founders must find the right person with whom to share the hard work, ups and downs and, ultimately, the rewards of creating something new.
Some entrepreneurs have turned to sites like Rockville, Maryland-based CoFoundersLab. The company helps connect compatible founders with one another and with business advisers who can share their experience.
Whether entrepreneurs are seeking new partners online or off, there are several strategies for finding the right co-founder. Some suggest focusing on urban areas rich in talent. Others suggest building the individuals own business and creative skills to make him or herself more attractive as a potential partner to others.
It is also important to consider whether you really seek a partner or just an employee. Non-technical partners are sometimes dismissive of the technical skills needed to execute an idea and bring it to market. This attitude can make it difficult to find a technical partner. Also, it may not be necessary to a sacrifice large percentage of equity just to get technical help.
Technical employees require a salary, but their equity stake is usually less than 5%. A technical co-founder would require a much larger interest, perhaps 50%, and issues might then arise about who brings more value to the partnership.
Here are some other issues that founders of a start-up should consider when bringing in new partners:
Track record Does the potential partner have a record of success in a specialty or in other startups
Expertise Is the candidate significantly better than you at some aspect of building the business or sales
Passion for business Does the candidate love building businesses, to the exclusion of all other things
Passion for a specific concept Does the candidate love the idea for a particular business and want to execute it
Commitment Can the candidate stick with the business through thick and thin and be a source of emotional support
Judgment Will a new partner contribute strategically and add value as a sounding board for ideas
Once a founder finds a suitable co-founder, sound legal advice is essential to creating a stable, lasting business relationship. Entrepreneurs who decide to go it alone will still needs assistance with everything from establishing their corporation or partnership to financing to employment contracts. The skilled business and corporate law attorneys at the Bethesda and Rockville, Maryland Offices of Longman & Van Grack advise new and growing businesses on a wide range of issues including starting a business in Maryland or Washington, DC. Call (301) 291-5027 for a consultation today.
