The affinity between founders can make or break a start-up. We speak with experts and small business founders for their advice, insight and stories (both good and disastrous) on how to forge prosperous collaborations.
A shared vision and a strong affinity are essential to the success of SMEs and start-ups. Without these, firms will likely experience disharmony and possibly fail. So, how can a company’s founders ensure that it thrives?
Daniel Landen, co-founder of Protected Travel Services, believes communication is key. He says: “We have opposite skill sets which complement one another – I am more sales focused and [business partner] Tom comes from banking, so is a stickler for attention to detail. The very part that makes our relationship work – opposite skill sets, different thought processes and different perceptions – are the very areas that can make us fall down.
“There are certain decisions we have had to agree to disagree on, but we agree to try one of our ways and have a respect for the path we have chosen.”
Respect each other
Paul Russell and Shanine Jajh, co-founders of corporate training company Luxury Academy, often disagree, but their mutual respect enables the company to flourish.
“Regardless of how much we may disagree, we are always on each other’s side,” explains Russell. “We have no secrets, and talk about everything. Shanine has become my best friend as well as business partner, I think largely because she’s the only one who understands the struggles at the start, like searching down the sides of the sofas for 20ps so we could buy petrol to go and see a client.”
Luke Barlow, co-founder of storage specialist Tufferman, met his business partner in an unlikely way; they were archrivals – but their skills dovetail.
“I ended up selling my business to Richard and began working for what was previously considered the dark side,” reflects Luke. “Turns out we work really well together and have complementary skill sets and experience, meaning the value that we brought to our previous businesses has now been combined, hugely increasing our impact with our current venture.
“You need to agree who will take on the traditional role of managing director – there always needs to be a final decision-maker or you run the risk of constant conflict.”
Define roles
Derin Cag set up Marketing Runners with Tim Campbell MBE, the first winner of The Apprentice. He also encourages would-be partners to clearly demarcate roles and to never assume anything.
Says Cag: “Clarity around who is going to be responsible for what is essential, so be clear about what you bring to the table and always deliver on your promises. Share worries early and don’t take anything or, more importantly, anyone – especially your partner – for granted.”
This is echoed by Jeremy Hindle, co-founder of recruitment software company, Headstart. “[Communication] doesn’t always have to be nice, but it does always have to be constructive; something which requires both co-founders’ engagement,” he says.
“I feel we both see life and the world very differently but, even so, we rarely disagree when it comes to Headstart. When we do, it’s always resolved quickly and constructively. It’s important to remain more proud of the sum of your parts rather than just yourself.”
Wayne Guthrie, co-founder of innovation consultancy, Fearlessly Frank, believes that when others see the trust between business partners, it reaches the whole organisation. Perhaps surprisingly, Guthrie, who met his business partner, Ben Little, at work, advises against ‘thinking business’ too much when it comes to teaming up with someone.
He says: “These days you’re likely to be either attempting something unprecedented, or entering an already highly competitive marketplace. Nothing is easy and you need people around you who are competent and skilled, yes, but who will also understand and be there for you emotionally.
“It’s why a lot of people get into business with friends, although I wouldn’t recommend going that far, having seen it crash and burn too often – literally in one case: I was working in a studio years ago where one partner set fire to the other’s car in retaliation for him running up dubious debts unrelated to the business.”
Test the relationship
For Susy Roberts, going into business with a colleague led to myriad problems. Roberts, who co-founded Cheshire-based people-development consultancy Hunter Roberts, had worked happily alongside her now ex-business partner – but it didn’t last. Today, she runs the firm successfully – without a partner.
Roberts recalls: “At first, our working relationship as business partners was really strong. We had almost a decade behind us – albeit working for someone else – and we knew we had a lot to offer as a partnership. Our skill sets were a perfect match and we had a lot of fun working together.
“He started talking about taking out loans to accelerate our development, but I wanted to grow slowly and sustainably and within our means. His focus was suddenly all about bringing in new business and he wanted me to be out selling, whereas I wanted to spend my time servicing my clients. I felt like this was a different direction than the one we had started out with and not one that fitted my values or agenda. In retrospect, there needed to be more of a formal arrangement around roles and responsibilities.”
Landen echoes this, saying that when co-founders don’t agree, there is a lack of direction, which creates stress and sends mixed messages to their team, clients and suppliers.
John Lyon, professor of practice in the entrepreneurship and innovation group at Warwick Business School, recommends co-founders spend time, prior to collaboration, learning how the other person handles stressful situations.
Professor Lyon says: “We would not cement a relationship with a significant other on just one meeting – well, most of us wouldn’t – and co-founders need to manage in the bad times, the uncomfortable times, times when no one else seems to believe in the business.”
Five steps to a better relationship with your co-founder
- See how your co-founder deals with stress before embarking on a partnership
- Have a weekly meeting
- Draw up a partnership agreement covering areas of responsibility
- Discuss potentially difficult issues before they arise
- Learn how the other person likes to make decisions
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This article originally appeared here: http://natwest.contentlive.co.uk/content/f82e854f-8a7a-8314-9225-8ea12706a58b