busi 701 artistic entrepreneurship class 6 building the team hawkins culture khosla team kawasaki...
TRANSCRIPT
BUSI 701Artistic Entrepreneurship
Class 6
Building the Team
Hawkins cultureKhosla team
Kawasaki soulmates
Go or No-Go?
Vernon’s Razor
Go or No-Go?
Team
• The #1 to mitigate risk in a new venture: proven team
• Most VCs have “team” as #1 ingredient
• Can you answer: Why you?– (Not being an expert is a management problem)
Why You?
• Google search:“Are you an entrepreneur quiz”
Attributes of Entrepreneurs
Khosla risk video
How to Attract VCs Article• Passion• Tenacity• Flexibility• Commitment• Teamwork• Coachability• Knowledge
“How to Attract VC investors” by Jim Casparie
If team is #1, then demonstrating these attributes
should be a high priority.
Team – Vernon’s Razor
• Management risk is #1, so building a team should be #1
• Share, share, share
• Don’t over-protect your idea– Protecting idea vs. #1 team
Team – Develop Your Network
• Good news: talented people like meeting talented people
• Play the student card
• E.g., on the Challenge executive summary application, you’ll be asked who has helped you and how
Developing your Network• Advisors/Mentors• Professional services, particularly lawyers• Investors• Partners• Customers• Suppliers• Service providers
Keyword: networking
Co-Founders
• Diversity of skill sets
• Discuss ownership up front
• Have an equity plan based on:– Money investment– Time investment– Long-term commitment– Value to firm
• Don’t use 50/50 default
Entrepreneur’s Guide Article
Qualities of Co-Founders
Essential Qualities of a Startup Company Team
Why Have Two Founders?(Not all of team are founders)
Get a great partner video.
Early On• Not everyone is a “co-founder”
• Consultants (paid) and advisors (unpaid)
• Incentives for early employees– Equity– Stock options– Deferred salary– Culture of new venture– “Ownership” of their piece of the pie
Kawasaki video (4:30)
Harness the Power of Advisors
• No business is too small
• Management “think tank”
• Where to find:– Recently retired executives (SCORE)– Business people you admire; aim high– No harm in asking
• Regular meetings (maybe quarterly)
“Harness the Power of an Advisory Board” by Susan Ward,
Keyword: networking
Evaluating the Team – Mullins
• Ability
• Personality
• Connectedness
Source: Mullins New Business Road Test
Team – Ability
• What are the few critical success factors (CSFs) in your industry?
• How can you validate that you have identified them correctly?
• How can your team demonstrate their ability to execute the CSFs?
• What are the missing links?
• Sales orientation? Source: Mullins New Business Road Test
Team – Personality• Mission
• Aspirations
• Risk
• To work for yourself?• To build something small or big?• Is the passion really there?• Will you risk the security of a job and a salary?• Will you risk losing control of your venture?
Source: Mullins New Business Road Test
Hawkins, passion
Connectedness
• Suppliers
• Customers
• Competitors
Source: Mullins New Business Road Test