When you have a startup, the people that make up the founding team are just as important as the actual product or service itself. To no small extent, your startup’s future success will depend largely upon the personalities of its founders, as well as how well those personalities come together. When it comes time to seek out investors, you can bet that those investors will pay close attention to the founders and how well they work together. So, what are some signs that one cofounder might not be a good match for the startup? That’s what we’re going to examine.
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Not Contributing Anything
In certain situations, you may have begun a business with someone because that person is a friend or you have a previous business relationship. Once things get started, though, you may come to realize that this individual doesn’t have much to contribute to the business in question. Think about skill sets. Does the cofounder’s skill set add something that’s lacking with the other founders? If not, that cofounder might be redundant, which is something that potential investors will notice.
Looking for Too Much Money
Unless your startup is backed by a sudden windfall of cash – say through an inheritance – then your budget is going to be extremely limited. Of course, everyone’s time is valuable, but when you’re trying to get a startup off of the ground, the business has to come first. If a cofounder is looking to receive compensation that’s out of line with the startup’s budget, then that’s a clear sign that his or her head isn’t in the right place. Remember, too, that potential investors will be looking into how the cofounders have been paying themselves.
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A General Lack of Commitment
Even if a cofounder is willing to take less in the way of compensation in order to get the startup off of the ground, that doesn’t mean that the cofounder is necessarily committed to the business. Is the cofounder pulling his share of the weight? Does the cofounder seem invested in the long-term prospects of the business? Is that cofounder forward thinking? A lack of commitment at the outset is a big red flag, and it is definitely a sign that it’s time to part ways. If that cofounder isn’t committed now, why would they be in the future?
Being Combative
For any business to be successful, and especially a startup, there needs to be a conversation of disparate voices at play. Naturally, disagreements are going to come about. There’s a difference between having constructive disagreements and those that become personal and combative. If a cofounder is taking disagreements to an extreme level, then this could spell doom for the company culture that you’re trying to create.
It’s About the Right Environment
If you encounter the above red flags with a cofounder, then be sure to put some thought into whether that person should be around for the long haul. Ultimately with a starting team, you’re looking to build an environment wherein everyone magnifies each other’s strengths. If creating that environment seems too difficult, then a change is almost certainly in order.
