Search

Or-Tal's Writings

entrepreneur/mother/education revolutionist/high tech addict

Tag

partners

Hats Seeking Heads: Partners Needed

The hardest thing when founding a startup is to build the founding team. Some lucky entrepreneurs cook their startup right from the beginning through brainstorming with others, and voilà – team! But there are many entrepreneurs who come up with an idea and then start looking for their partners.

The relationship between cofounders is a lot like the relationships between spouses. So you’d want to make the right decisions and make sure you work great together. I recently read an amusing article on Inc. magazine suggesting a camping trip to test potential partnerships. I will be perfectly happy with testing the waters in an incubator or accelerator too. I don’t really feel the urge of eating dust in the desert. The thing is the article is about choosing your partner, assuming you have a pool to choose from. It’s not about finding them.

And finding partners is tricky.

So I started off with one potential partner, then a second one tagged alone, the first one said he is not seeking any active role in the company, and his job will probably be done before the production begins. The second one seemed promising as we met a couple of dozen times, but his availability seemed limited, until he finally admitted that assuming the risks and responsibilities of setting up a startup isn’t really what he is looking for right now. And woops! I have one and a half advisors, but no partners.

I advance in very little steps towards developing my own product, or at least its offline test version (I am not a programmer), but the search for co-founders is a real distraction:

hats

Can’t raise money to pay for the development of the product if there’s no team to meet the investors. Investors, as we all know, invest in people first, ideas second.

I can’t recruit developers if I can’t pay any salaries.

Risk assuming entrepreneurs who are looking to join a startup based on someone else’s idea are nowhere to be found here, in Israel. People either have their own idea or they expect salaries pretty much from the start of the startup. And the investors keep expecting established teams and launchable products (if not launched with traction…).

But keeping an optimistic and keeping an open mind I’ve met several great people over the last few weeks. One of them actually gave me several ideas about other less common founding models: for instance, to have a potential team ready to meet investors and declare their intention to join the startup as soon as funds are there to cover their costs is one of them.

Does it really work?

The Pitch & The Name, The Chicken & The Egg

Last week I took a rare drive to the TechAviv Founders meetup at Herzliya IDC. Not a drive I take lightly, mind you. But a rare opportunity with the kids taken care of, my lift both ways arranged, and enough coffee to keep me alert at the hours which are correctly referred to as “twilight”.

It was a great opportunity to meet with the community of entrepreneurs and investors I am proud to be a part of. Was nice to meet old colleagues, some new ones and of course Yaron Samid, who first introduced this meetup as a guest in a meetup I organized some years ago (continues here ).

Dave McClure gave a great talk and conversation around pitching. It’s great to be able to practice your pitch in a sympathetic environment, and get a really useful feedback to help you improve.

I was surprised though at some of the pitches, not to mention company names I heard during the evening. It took me right back to my consultancy days, when most of my business was creating names and doing renaming projects for startups and helping them create their pitch and communications strategies.

Name Thy Baby

So let’s start with a name. Or – let’s not. If there’s one thing I’ve learned about naming companies and products is that too often people come up with a general idea for their startup and their second step is immediately to name it. As if this baby, if not named immediately, will never learn to walk. They take great pride of the name they have created, sometimes they sound prouder of the name then of the business.

But a better way to do it is to use a temporary name, working title, project code-name and delay the naming until you are sure of your markets, your business model, your marketing & communications strategy and the overall terminology your business is going to use. Not to mention languages. Lots of Israeli entrepreneurs assume English automatically – but that’s not necessarily your target audience or all of it. If you might be targeting more than English speaking markets, beware embarrassing mistakes like “Pajero” “Pinto” “Mist” etc.

It’s almost a chicken and an egg question, only people here are so certain the name comes first. It shouldn’t. Your pitch should.

The other thing I noticed about the recent names I heard was intentionally using misspelling or a mixture of words one simply can’t spell from hearing only. Be very careful about these inventions. You might be a tech genius but when it comes to naming, using an expert could be the wisest and most cost effective move you can do at this very early stage in your company’s life. 

But this is really just the tip of the iceberg. You can look at a sample process here or look for more great tips on Google.

Pitch At All Costs

It might be that 15 years as a journalist in print journalism made me very efficient with words, especially crafting headlines that can tell enough in a limited number of characters and leave enough mystery so the reader continues reading. But this is exactly what you should do when you are pitching your company to an investor, partner, employee or supplier. Don’t attempt to tell the whole story. One of the main things to remember of course is who your audience is.

Take the same news item and compare the headlines it gets on various media. The differences result from the audience a medium is directed at. The same goes for pitching. You should always prepare a set of pitches for potential audiences. Not totally different pitches obviously, but different ways of saying the same thing.

To make sure you are using the right pitch – prepare before you go to an event where you might meet Dave McClure, for example. There’s enough information online about him and what he is looking for. So if this guy is looking for companies with traction – and you have traction – then grab his attention with his declaration of interest. Not with the fantastic and original un-spellable name of your company, nor with the story of what it is you do – that does not belong in a pitch.

And just for the sports – if you want me to draft some sample pitches here for you – I dare you to send me a paragraph (up to 3 twits long -520 characters) – and I’ll do my best. First 5 to send me (comment on this blog post) –win.

The Mangorangeberry Startup

Imagine you just had the thought of inventing a Mangorangeberry, a product that doesn’t exist yet. Sure there are oranges, there are mangoes and there are berries, there are even fruit salads, but no one has thought or produced anything similar to your idea of Mangorangeberry.

You begin to explore the market and see what they could be thinking about such an idea, without giving away the exact map of your Mangorangeberry. You encounter many people who are talking about the need for a combination of these flavors, these textures, the colors and the shapes of oranges, mangos and berries.

You read articles of great scholars explaining the need for change in the fruit market, especially the combination of oranges, mangos and berries. You encounter professional chefs aching to get their hands on such a combination. And thousands of hungry people seem to be just waiting for your Mangorangeberry to appear.

You know the concept is right.
You know the timing is perfect.
You know what should be done.

Yet…

You need to buy the land, buy the seeds, hire professional lab researchers to develop the combination’s seeds, plant the seeds, grow the plants, harvest and then, begin the tasting phase. You have a great idea, but you can’t make it happen all alone. You will either need money to buy the land, seeds, lab work and field work, or you need to get partners: one with the land, one a lab pro, one with the seeds… OK, with the planting and harvesting you can manage.

Now the search begins.
And potential partners are all over the place. They are interested. They are enthusiastic about your idea. But still, you haven’t found the partner with the land, or the partner who’s the lab pro and are available to join you.
Those partners, who will contribute their new set of skills, totally different from the set of skill you bring in, are hard to come by. Or they are too busy. Or they can’t afford to invest their time and effort in your startup.

Or maybe you aren’t looking in the right direction? Or perhaps you have been making the wrong offer?

Blog at WordPress.com.

Up ↑

%d bloggers like this: