Summary
Highlights
Co-founders are essential for the success or failure of any business. Conflicts among co-founders can break the entire business, making the selection process critical. The speaker shares five personal tips for finding the right co-founder.
Before seeking a co-founder, determine if your business is a 'lifestyle' or 'performance' business. Lifestyle businesses support the founder's personal goals and typically don't require co-founders due to their smaller scale. Performance businesses, focused on growth and efficiency, absolutely need co-founders for success.
Perfection is unattainable in co-founders, just as it is in oneself. Starting a company requires immense patience. It's vital to identify non-negotiable qualities and areas where compromise is acceptable. Respect and patience are key ingredients for a successful co-founder relationship.
Performance businesses require specific critical roles: CEO (sales, marketing, growth), CTO (delivery, technology, team upskilling), and COO (day-to-day operations). When seeking co-founders, look for individuals who can potentially grow into these roles.
A unique test to assess a potential co-founder involves imagining a bank robbery scenario. You need sharp, executing, problem-solving, loyal, and committed individuals who will stick with you through adverse circumstances. Those who pass this test are likely good co-founder candidates.
Avoid making friends, strangers, or easily hireable individuals your co-founders. Friends can make difficult business conversations challenging and prioritize friendship over business. Strangers lack a pre-existing understanding. If someone can be hired for their skills, even at a higher salary, it's better to hire them than to give them co-founder status.