Starting a business takes more than a good idea; it requires a good startup team and good execution. Because of tough competition in the world of startups, it becomes boiling to know how to hire the right people and how to maintain a productive work environment. This is my second article in the “Getting Started” series. In our earlier conversation, we spoke of how to start a startup. Here, I will take up the more critical aspects of team building and execution and point out how to safely steer clear of those pitfalls.

Identifying Fast-Growing Markets

Any entrepreneur should be able to identify the fast-growing markets. This is an area in which young founders have an advantage—a good feel for the emerging trends, usually more so than the older generation. Instinct and a view of what you and your peers are engaging with can give you a feel for where future market growth will be.

• Watch your usage patterns.
• Note what your peers are interested in.
• Keep up to date with technology.

By focusing on these areas, you are able to identify potential markets which might prove growth markets over the next decade.

How to Deal with Founder Burnout

Probably the most common challenge founders face is simply burnout, and it can greatly decrease how effective a founder is at their job. Too bad for students if they burn out; they can always take a year off. But if entrepreneurs want to succeed, they must press on with their challenges. When things are at their worst, conventional advice is to take a break. In general, that doesn’t work. What will work is to double down on your support network and pay attention to the problems at the core of what’s causing potential burnout.

Choosing the right co-founders.

Within the top decisions in founding a company is the choice of a cofounder. The hard truth is that this is the relationship that could make—or break—your startup. Most founders go terribly wrong in making an ad hoc selection of co-founders without considering compatibility, and it eventually backfires.

Significance of Compatibility

Building trust and shared history is fundamental. Co-founder relationships cannot be left to chance. Purposely, look for people with whom you have an affinity or common experiences.

• Look for long-term relationships.
• Look for complementing skills.
• Look for co-founders through strong ties.
• An Ideal Co-founder

Characteristics of an Ideal Co-Founder

Screening for the right co-founder amounts to weeding out specific characteristics. Y Combinator describes the model co-founder as “relentlessly resourceful.” Other characteristics are:

• Not ruffled under pressure
• Quick, decisive and creative
• Tough and calm in adversity

Culturally, think of the kind of co-founder that is reminiscent of James Bond—adaptable, quick-thinking, able to handle any situation.

The process of hiring

Once you’ve built your team, you’ll need to learn how to hire. Given that early hires can have substantial weight on your startup’s culture and success later on, it pays to carefully consider this process.

Hiring Philosophy

Founders often mistakenly feel that a large team is a good indicator of success. In reality, a smaller, dedicated team can often be more effective. Don’t hire unless you absolutely need to, and then keep the team lean.

• Aim for a small number of employees initially.
• Prioritise quality over quantity.
• Hire slowly and deliberately.

Finding the right candidates means having a “Strong Startup Team”.

Personal networks are the sources of the best hires. Make the team members use the common connections to drive recruitment.

Screening for Candidate Suitability

Anytime you’re hiring, ask yourself the following three questions about each candidate:

• Are they intelligent?
• Can they get things done?
• Do I want to work with them?

If you can honestly answer ‘yes’ to those questions, you just did yourself a huge favor by actually coming up with some pretty strong hiring criteria that will enable you to staff your startup with the right kind of talent that will help move your company forward.

Onboarding and Retaining Employees

Once you’ve hired the best people, you need to keep them. Retention is important for team continuity and morale.

Developing a Positive Work Culture

Establish a nurturing environment in which your employees feel appreciated. Acknowledge their efforts on a regular basis and show them ways to grow with the company.

• Provide competitive equity opportunities.
• Foster open communication.
• Have regular constructive feedback sessions.

Following these steps will be critical in building a loyal and highly motivated team.

Underperformance management

Underperformance is part and parcel of having a team. When such issues arise, they should always be resolved not to undermine the good morale of the team in case there are any problems.

Letting Them Go

When an employer finally does figure out that the employee is, indeed, not a match, then it is better to fire fast. This decision is often very painful but generally required for the health of the company.

• Identify consistent underperformance.
• Communicate clearly about expectations.
• Act decisively when needed.

Execution: The Heart of Startup Success

One of the absolute essentials of a startup founder is execution. It is in holding the vision, yet rigorously keeping the team efficient in the pursuit of that vision.

Setting the Bar for Execution

As a founder, you need to set the standard of execution inside your company. That doesn’t mean defining clear goals once, but many times; exactly what one means by goals. Returning to these goals time and again can help to stay focused and keep up momentum.

• Clearly define metrics for success Inspect performance regularly.
• Celebrate small wins to keep morale high.

The Role of Communication

Effective communication keeps everyone focused. This will let everyone on your team know exactly what should be done and toward what common goal. When that happens, none will ever work at cross-purposes to another. Miscommunication causes waste in efforts, thereby killing productivity.

Keeping the Momentum

For a startup, momentum means everything. A team that’s winning keeps positive energy flowing. On the flip side, a team not moving fast will spiral down into a negative vortex quickly.

How to Build Momentum

Below are some key tips you should keep your team excited and on target:

• Make clear and achievable goals.
• Reward a culture of accountability.
• Deal with challenges timely and constructively.

Responding to Challenges

When things are going wrong, look out for small wins that are attainable and which can reset the failures. Do not engage in lengthy discussions of the corporation vision when things are not working; put into consideration tactical moves that can bring a prompt end to the negativity.

Conclusion

A good startup demands great attention to the team and execution. Having the right co-founders, hiring intelligently, and maintaining a good working environment are steps that will surmise the efforts toward execution and significantly enhance the chances of success for the founders. This is, after all, a marathon, not a sprint. So, one has to constantly put in effort while making strategic decisions to survive in this harshly competitive landscape.

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