Choosing the wrong co-founder can lead to disagreements, misaligned focuses and ultimately an unsuccessful business. In this blog post, we will explore three key areas to consider when looking for a co-founder:
Complimentary technical skill sets
When you’re looking for a co-founder, you’re not looking for another version of yourself (regardless of how much you might like the idea of this!), you’re looking for someone with a skill set that compliments your own. Therefore, assessing your own strengths and weaknesses is great way to identify the areas you struggle in and where a co-founder may be able to fill in the gaps so you can focus on what you’re good at (and enjoy!).
So if you’re an expert in the technical aspects of your product, it could be beneficial to look for an expert in other areas such as sales & business development, marketing or finance. Alternatively, if you’re non-technical, then an obvious trait to look for in a co-founder would be someone with a strong technical and engineering background. Even if you are looking to outsource or make early hires for this development, having a co-founder that has the technical skills to lead and oversee this product development can be invaluable.
The end goal is to build a balanced cofounding team that can oversee every key business function. One of the common phrases you hear from solo founders is that they need to “wear many hats” – a product “hat”, a marketing “hat”, a finance “hat” etc. Even with a co-founder, running a startup will undoubtedly still require this, but a co-founder can at least reduce the number of hats you need to wear!
A shared vision, values & commitment
Whilst the previous point was on what the co-founder has that you don’t have, this one is about you what you and the co-founder do have. Namely in this example, your co-founder should share your long-term vision for the company, be aligned with your core values and be committed to the business goals. This alignment will provide a solid foundation for your business and help you weather challenges that may arise.
A shared vision - If you have founded/will be founding a business, it’s very likely that you’ll have a vision for where you want the business to go. It’s crucial then to discuss your goals and ambitions with any would-be co-founder early on to ensure that you are on the same page and have a shared understanding of the direction you want the company to take. For example, if you’re looking to build an established business but your co-founder wants to seek an early exit, you’ll soon find yourself running into disagreements as you’ll both be trying to optimise for different outcomes.
Aligned values - It’s also important that you can find common-ground in your values, ethics and principles, as this will pave the way for open and honest communication, and reduce the chance for major disagreements. As your company starts to grow, your company culture is likely to become a reflection of you and your co-founder’s values and principles, so it cannot be overstated how important it can be to get this right early on.
Matched commitment - The ideal co-founder will also share your commitment to the business. Passion and commitment are the driving forces that will keep you and your co-founder motivated and focused on achieving your startup's mission. By choosing a co-founder who shares this level of dedication, you will be better equipped to overcome obstacles and celebrate milestones together. Whilst you may be lucky to find very motivated early hires and there are ways to get them more invested into the businesses’ success (see our blog on EMI schemes for example), the drive of a co-founder can be unmatched so choose wisely.
Soft skills for startup success
As anyone will tell you that’s ran (or even worked in) a tech startup, it can be challenging and stressful. However, there are certain soft skills that make people better suited for thriving in these environments but also importantly, better people to work alongside. Some examples of the types of soft skills that you may want in a co-founder include:
Effective communication skills – this seems an obvious one, but it warrants emphasising the importance for co-founders working in a startup environment. Early stage tech businesses will require open exchanges of ideas, feedback and even disagreements so a co-founder that can articulate their thoughts clearly is a valuable skill. This can also be a crucial skill if you can see fundraising as part of your tech company’s journey, especially if you wouldn’t be comfortable networking or pitching to investors yourself.
Resilience and adaptability – Startups can be unforgiving, unpredictable and fast-paced so a resilient co-founder that can take this in their stride and share the burden with you will be invaluable, especially when facing any challenges and setbacks. Adaptability is also key, as these challenges and setbacks may not only require you as founders to adapt, but also the whole business (see our article on famous tech pivots here for examples of this).
Problem solving and decision making – There will always be bumps in the road in your startups journey, this can include complex problems and decisions that require creativity, critical thinking and resourcefulness to find favourable outcomes. In the fast-paced tech world, you’ll need your co-founder as a sounding board for your own thoughts but also to be proactive in suggesting solutions and making decisions.
What next?
Of course, this isn’t an exhaustive list and there are plenty of other qualities to look for and preferences that you may have for a co-founder. This may range from other soft skills such as emotional intelligence through to industry knowledge and connections, which is especially important if you’re launching an industry that’s new to you. Finding a co-founder is about building the foundations of a well-rounded team that works well together, which in turn can drive the business to success.
As well your co-founder, it’s important to have trusted partners externally too. If you would like to discuss partnering with our Tech & High Growth team for your accountancy, finance and tax requirements, please get in touch with James Foster at j.foster@uhy-uk.com.
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