Profitable investments there are many; However, the best you can do is to find a co-founder based on trust, complement, commitment and aligned interests to assume the risk inherent in the creation of a company.
Many business opportunities are not taken advantage of by an inadequate search of the perfect partner to undertake. On this occasion, I will share from my experience the mistakes I made when looking for a co-founder for my projects.
Contenido para leer/content
- 1 A co-founder is like a courtship. Before looking for a relationship, reflect if you are a good match.
- 2 A good partner is clear about he wants, and he doesn´t want.
- 3 Someone who brings business ideas or puts the first customers is not a guarantee that is a very good partner
- 4 And because of that requirement to generate an experience, you have to start with the one that generates value.
A co-founder is like a courtship. Before looking for a relationship, reflect if you are a good match.
Before I trained as a business coach, I was not very aware of this issue. If one is looking for how to create a successful business, one should have prosperity mentality.
Similarly, nobody wants to have toxic people that instead of growing, retains, tangle and destroys. Explaining it with plasticine, people who want to be prosperous, they look for people who already have it.
Personally I had failed in three fundamental aspects:
- I had an excessively controlling and arrogant attitude.
I was not clear about the way people participate in my projects
I always thought that a partner is around the corner, in a bar or networking meeting.
Finally, what did I usually do?
Almost always I ended up working alone, people left the project for the sole fact of not being able to stand my dictatorial attitude. In other cases I ended up being swindled, or I ended up with a kick in the ass, outside of what used to be my company; because the people that I believed were my partners ended up being vulgarly crooked.
When this happens, our values do not match the values the company needs to serve the one that really needs us: the client.
For this reason, I invite you to reflect first if you are a good match for a possible partner. Maybe you have these business coaching questions to help you:
- What do you appreciate so much about yourself and for nothing in the world would you give up on changing it?
- What do you detest about yourself and feel embarrassed?
- How do you feel orphaned? What are you not good at?
A good partner is clear about he wants, and he doesn´t want.
A good co-founder knows how to communicate. Bad partners first say one thing, then leave with another thing. This happens because people don´t want to look bad with anothers. Then you must learn to interpret what is meant by YES and NO in business.
Especially in Latin America, people don´t know how about respect agreements, being one of the reasons why a foreign investor hardly invests in Latin American startups or companies, unless they have a great deal of control.
For that reason, so that you do not waste your time with people who are not very serious and opportunistic, who seek to squeeze out those who leave, it is worthwhile not to make these mistakes:
Start a deal without signing a partnership agreement
A good partner will never be scared when you tell him that you want to do everything legal, agreed between the parties in writing from the beginning. A partnership agreement shields your position and rights on your project, in addition it provides the guarantees for your counterpart in the following aspects:
The shareholding or ownership of the company and when it will be entitled to such participation and under what conditions.
What happens if the company has to close for an infinite number of reasons? (especially by discord between the parties)
If one of the partners dies who is entitled to the share of the deceased partner?
In the event of the entry of new members, how is the participation of each original member protected, up to how much percentage is the participation of each one diluted? What is the minimum entry price of participation purchase?
If you need to know how to make this type of agreements I share you my partners agreement template (in spanish)
Not being clear about how you get the money to start.
A company works with sales of a product or raising capital. It should be clear how much money is needed to start. Personally I start with my own money; I dont like to have partners who only contribute their knowledge or their work at hand.
The thing is very simple: no one is a glorious body, and as I said before, if people do not see money, they leave. Here it is important to understand that a company is a high risk marathon; of good first money to distribute maybe not…
A good co-founder has some resources, is really determined to get on the bus, both good and bad. You must also have gamine stomach in case of a bankruptcy.
I also do not like having bosses who come with money to impose decisions, seeking to stay with 90% of the company, under unequal yoke. To these people treat them as an investor, there are many ways an investor can help (a convertible note for example).
Someone who brings business ideas or puts the first customers is not a guarantee that is a very good partner
I am very sincere, everyone has ideas, so it’s stupid to fight because “they stole my idea”. What is important here is whether there is a real business opportunity and a team that works to develop and scale it.
Be careful: If you do not know how to sell a tamale in a landslide and look for a character that will look for clients. That character can be your future competition, even, you can steal customers to the building opposite …
I mean, I can´t imagine a NASA scientist undertaking a high-end project with the man who sells empanadas on the corner of the neighborhood. I believe that a perfect partner to create a company is sought not from the need and personal taste, but in terms of the challenges that need to be overcome to generate an excellent experience for potential customers.
And because of that requirement to generate an experience, you have to start with the one that generates value.
If you want to play an office with a secretary who receives calls, and feel entrepreneurial, you may not understand me. But, if you are truly going to generate a new self in people, you will have to do it with the best ones, even if it costs you the pride and swallows the ego. Because today being lazy does not pay.