An often undervalued part of building a successful startup is the team. Many entrepreneurs just hire their friends and people around them without giving much thought on what they can really bring to the table and if the combination of skills, experiences, personalities etc. is right at all. They forget that it is an important if not even the most important part of becoming a successful startup.
Like Guy Kawasaki famously said: “Ideas are easy. Implementation is hard.” And successful implementation is all dependent on the team. It does not matter how great the idea is if they cannot pull it through. Actually, it often is better to have just a “good enough” idea and a great (or promising) team as a starting point than the opposite.
It doesn’t matter how great your idea is if your team cannot pull it through. Tweet!
Even more important than the business idea?
You are going to hear the same gospel about the importance of the team also when talking to any VC investment professional or experienced serial entrepreneur. In fact, it is often seen even as the main asset of the startup. You might even get the impression that the value of the” obvious” core i.e. the business idea or product, is downplayed. This is not the case, but the team is as much core as the value proposition and product.
Building the team and company is like institutionalizing the right thing to do to do things right. You build an engine to do and repeat what seems to resonate with the real, validated market need. Steve Blank talks about startup as “ … a temporary organization looking for a repeatable and scalable business model.” Building a great team is one important step in getting the engine working. Unfortunately for many entrepreneurs, it is not that obvious.
Why the importance of teams is so misunderstood?
One of the reasons for that is that many (if not most) of the commonly used business tools don’t cover the team properly. Take for example the Lean Canvas. From it, we learn that a well-functioning business model with all the ingredients in place calls for the right balance: value proposition and solution resonating with the real market need, channels built to paying customers and so on. However, the Lean Canvas only regards the team as cost element. But why? Don’t they see the importance? Yes, they do, but you must keep in mind what the canvas is about: helping to iterate and find the right product-market fit. So, it does not downplay the role of the team, you just need to remember to cover it separately.
So, remember to not only focus on building the business model, product and what have you, but also building a team that can execute it all. After all, it is all about execution.