Skip to content

3 Co-Founder Roles You Need, and When to Bring Them

3 Co-Founder Roles You Need, and When to Bring Them

opinion expressed by entrepreneur Contributors are yours.

Should you go it alone or hire co-founders? If you hire co-founders, should they be friends, colleagues, or family?

When starting your business, these are the right questions to ask. The biggest reason startups fail or succeed lies with the founder/management team (not the product), so getting the right people in the right roles has a profound impact on the rest of your life (no pressure!). Sixty-five percent of startups fail due to management issues, mainly because of the lack of the right team., According to Harvard Business School professor Noam Wasserman.

RELATED: Thinking of going it alone? 7 reasons you need a co-founder

All dramatic aside, startup founders are facing a whole new world as they build their business, which is why Wasserman offered a “three bucks” framework that can be used when determining Who might be the right fit for your founding team. Nevertheless, this framework is useful only when we have a clear picture of what roles need to be filled. While history shows that it is possible to have a company that raises money and exits with just one founder, most high-gross startup companies have co-founders.

I’m encouraging startup founders to stick with it and try to dispel the myth that you need co-founders. The reality is that those who decided to go it alone, more often than not, say they wish they had a co-founder to divide the work, empathize through the experience, and provide support. But, should you choose those co-founders Only For emotional support?

It’s tempting to have friends, peers, and family as co-founders, because they share a passion, are trustworthy, and you get to know them. There is warmth and comfort when choosing people you know, but it comes at a cost. We know there is a high failure rate for startups that choose founders from friends and family, usually because of the stress of needing to make important decisions while maintaining your relationships. Mostly, the relationship is prioritized, and the best decisions for your business are discarded. What is best for the business will probably be to build a team from scratch, bridging the specific expertise that is critical to early-stage planning. So, who should that be?

Depending on your industry and the type of startup you are launching, there will be different needs and expertise needed. You’ll also want to consider what roles you’re prioritizing when bringing on founders, as with each new hire comes a reduction in available equity, which can impact fundraising later down the road. Therefore, planning that hiring roadmap before this It’s important to get started, and put the right founding team in place. Knowing that your specific founding team may require a different composition, my goal is to offer a generalized way of thinking about the three roles that should be prioritized for your founding team from the start.

RELATED: 7 Qualities Every Entrepreneur Should Look for in a Co-Founder

1. CEO

You will need a driver who is also a jack of all trades. When you negotiate with other businesses, potential investors, and even internally, people will expect that you have a CEO who will help lead the conversation and keep progress and planning on track. Even though decision making may be shared internally, a CEO can guide the final decision and execution. They play an integral role in problem-solving, hiring, planning, and building culture from the start. For the time being, the CEO may also fill the COO role, but this should be short-lived and rebalanced as your startup grows.

2. CTO

The CTO is not just a tech savvy. They are individuals who have a strategic mindset along with sales and business acumen. In the beginning, the CTO should be prepared to get their hands dirty, especially if you are a tech startup. In the early stages, the CTO may have 80% strategic responsibilities in construction and 20% strategic roles, which are spread over the strategic planning and fundraising areas, which over time can grow to 20% tactical and 80% strategic . Nevertheless, they need to be able to make strategic technical and operational decisions, while being available as well as being agile enough to perform most tactical tasks through early-stage development.

3. CMO

In some cases, you may want a third co-founder on your team who can lead the development initiative from the start. While partial CMOs are involved in startups all the time and are certainly an important first hire, it is not always the case that they are officially part of the founding team. With a CMO as part of your founding team, you’ll expand your scope of strategic opportunity, which can impact your ability to reach investors and potential customers, as well as what you need to do before you launch. Brand-building can generate buzz. Many startups make the mistake of waiting to market themselves and their company when it’s ready to go live, which loses time to build things like backlinks, credibility, and established connections.

It’s worth emphasizing that your company and product offering can affect what type of founding team you want to build. That’s why I take the time to work with our clients and understand what gaps we need to fill and create a strategic growth plan for hiring and co-founding members based on their vision. Whatever it is, not winging it from the very beginning will make a difference in your success.

RELATED: How to Select the Members of a Founding Team

Key Success Reminders:

  • Have a clear division of labor, and consider how this plays into equity, while remaining agile enough to rebalance responsibilities when needed. Moving forward and alignment is dangerous if there is overlap between roles, so clarifying roles and responsibilities and being able to draw that line directly for potential impact on revenue/growth would be valuable in short-term and long-term funding strategy.

  • Consider how the decision making is going to be navigated. How are people making decisions in the company? Do you have a voting point of view or need consensus? Who has the last say? Keeping a clear decision structure in mind and what happens if the team starts falling apart will keep you grounded as you navigate the twists and turns of getting your startup off the ground. Unequal equality is an approach to solve this, where everyone has equal places, but you can grant decision rights to one or a few individuals to proceed.

  • Legal is arguably an advisory role, but it is nonetheless important to your founding team as soon as possible. Most people value this person for contracts, fundraising, and setting up a stand-alone legal entity. What is easily overlooked is substantial intellectual property that may need to be protected. Additionally, not having the right structures built up front could leave you in an unattractive situation down the road, which the acquisition of FanDuel years ago was a great reminder of.

  • A CFO should also be one of your first employees, although not necessarily a part of your founding team. Specifically, as you begin raising funds, your CFO may work closely with your founding teams and legal counsel to ensure proper financial planning around cash flow, fundraising, and projections.

credit source

3 Co-Founder Roles You Need, and When to Bring Them

#CoFounder #Roles #Bring

if you want to read this article from the original credit source of the article then you can read from here

Shopping Store 70% Discount Offer

Leave a Reply

Your email address will not be published.