How to Choose a Co founder for Your Business Success

How to Choose a Co founder for Your Business Success

Someone asked me this Question in an African Business Leaders’ Group.

Question:

In choosing Partners/Co-founders,
What are the essential things to look at? How to choose a co founder

What are the proper legal processes to taking in a co-founder?

Here is My Answer:

I’ve lost a lot to co-founders
Yet I’ve won with co-founders to build great entities
Our vision has been dumped by some
Yet I’ve had those we’ve weathered the storm together
I’ve had a co-founder decide to Branch out to do something related to what I invited them into

I’ve also had cofounders ridicule me cos I choose to be humble

I have Co-founders in Nigeria and cross-border or Diaspora Co-founders

I’ve had those who quit their own dreams to join mine

Honestly, I’ve also been a bad (unproductive) co-founder Before in a certain brand

And I’ve also walked away and left equity and money on the table in some places

So, here are Essential things to look out for

Their own personal Vision

• if they have none, they can’t push yours
• if it’s not at least possible to move together to fulfill yours and theirs, it’s a waste of time to go with them

I teach often at The Exceptionals Business School that:

Their Interest in your vision is one of the most important

• What do they talk about the most?
  The money to be made, or the distance to go to together?
• if all they see is money, they’ll quit on you when things are not working

Competence and Capacity

• Don’t ever get or retain them by Emotions,
• Measure their competence, observe what they’ve done before
• They MUST Complement you in areas you don’t have the skills
  .
• Capacity includes money
  If they can’t bring money, try to ensure some of them can find money, else you’ll be frustrated

• Character
  This is Critical

• Trust and Loyalty

The Proper Legal Processes?

• Discuss in Detail all matters bordering the company’s vision
• Identify the Equities Holding
  (I don’t suggest this is finalized In less than the first 6 months to ascertain People’s Commitment… but should be done 1 year or before the company gets a major break)
• Have Co-founders Agreement
  (I’ve been a victim of not having this)
• let the agreement state what is expected from each person… JDs are a must
• let it show Clauses of what to lose if those things are not met
• Let them have a vesting period.

There must be some measurements of KPIs and Deliverables, and it’s when they fulfill that, they Officially retain the position of Co-founder. This can be 6 months, 1 year, or even 2 years of vesting. The ideal Equity vesting is a minimum of 4 years

• It’s your work to ensure everyone’s contribution is measured and tracked, so there is no cheating in any way
• Let them know from the onset that they are not to compete with this vision in any way, not even after they leave

In other words, have proper clauses to protect you all.

• Use Sound Lawyers … specifically a Startup Lawyer

I think I can write up to 3 books on Team Building, based on Experience, and I’ve given a few trainings on this.

But these for now should get you going

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Cheers to your Journey

© Olatunde Victor Adeoluwa
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