Many people dream of establishing a startup; however, not everyone is able to do it. Even after you are successful in launching a startup, chances are it won’t last long. Why? Well, because of an incompetent or simply wrong team. Building a competitive startup team is one of the hardest and most important things for a new startup. This is evident by looking at the failure rate of startups. According to a report by CB Insights, around 23% of startups fail because of having the wrong team. This data shows the importance of a good team for your startup. In this blog, we will take a look at some of the tips you have to keep in mind in order to have a successful startup.
#1 Hire People With Complementary And More Than One Skills
You should consider people who have more than one skill. An individual who has more than one skill will be able to take care of more than one task. This is why having a multi-skilled workforce is good for small startups. One great example of having complementary skills is Steve Jobs and Steve Wozniak. Jobs was a visionary and a marketing genius. He always knew how to sell something. On the other hand, Wozniak was a technical wizard. Contrary to what many people might believe, you should not have like-minded people on your startup team. While working with like-minded people is undoubtedly comforting, for the success of your startup, you need a team of people who think differently than you so that you can get more than one perspective on a particular decision or problem. Two perspectives on a particular thing are always better than a single perspective.
#2 Choose A Team Which Culturally Fits
While building your startup team, don’t just look for skills; also analyse the person’s core values. It may sound difficult, but it is important to find the right candidate who fits your company’s culture. A perfect example of this is Zappos, an online shoe and clothing retail store run by its founder Tony Hsieh. He believed in hiring for cultural fit, even over skills. This helped him take his business to new heights because synergy between employees is sometimes more important than hard skills.
#3 Resiliency and Adaptability Is The Key
Startups often face unpredictable challenges that can derail them without staff that is quick to adapt. This is why it’s important to hire a startup team which are resilient and can adapt to various job roles when needed. A survey by Entrepreneur revealed that around 58% of successful startups attribute their success to their team’s ability to adapt to various changes and market demands. One example is Instagram, which started as Burbn, but as soon as it found out that its photo-sharing feature was gaining traction, it quickly pivoted its focus and started focusing on sharing pictures. Some of the top startups in Asia use this tip to ensure their longevity.
#4 Consider Using Contractors Every Now And Then
One of the best pieces of advice for entrepreneurs is that they don’t need a big startup team at the start of their journey. They don’t need to hire full-time employees for every need that arises in their startup. There will come a time when you will need a person to perform a particular task. In that case, don’t go and hire an employee; consider a contractor or freelancer to get the job done. This is a cost-effective method. When dealing with contractors and freelancers, it is important to perform due diligence. Be sure to ask for references of their previous work and ask around within your industry for second opinions. A prime example of this is Uber. In its first few years, Uber attracted thousands of drivers in cities across the U.S. by offering flexible work opportunities and competitive earnings. This allowed them to curate a long list of drivers for the users.
#5 Accountability
There is no point in working if you don’t hold yourself accountable for your work, either good or bad. Creating a sense of accountability in your startup team drives their innovation and enables them to deliver their best work. So, choose your employees wisely, the ones who can hold themselves accountable for their actions, whether good or bad. One of the best examples of this model is Netflix. To this day, Netflix offers a culture of accountability and ownership, which drives its employees to take ownership of their projects. This autonomy has resulted in high levels of innovation and efficiency. Also, a report by Harvard Business Review stated that when employees feel accountable for their work, their performance tends to increase by 25%.
#6 Make Communication a Habit, Not a Rule
Communication is perhaps the most important factor in the success of any startup. It allows the startup teams to promote transparency and swift problem-solving while keeping everybody aligned. It’s up to the entrepreneur to hire people who promote communication. Not only does it drive innovation, but it also helps identify problems and shortcomings. According to the Holmes Report, companies that foster a communication-rich workplace environment usually witness 50% lower employee turnover rates.
Crafting A Cohesive and High-Performing Startup Team
Your employees or startup team are the most important things for your startup and are the driving factors behind its success. These tips will help you build a strong startup team that emphasises continuous learning, accountability, a healthy work environment, and recognition. By focusing on these aspects, you can create a resilient, innovative, and high-performing team that will be ready to tackle any given challenges the startup journey may bring.
