You know that I have long (sort of) joked that you either get StartupTherapy™ or the founding team ends up in serious therapy. But the reality is, entrepreneurship will test you and it will test your relationships, so prepare for it, and address it. We call this process and this mindset StartupTherapy™. It includes elements of culture, communication, power dynamics, vision and committment. and frankly it requires a level of emotional openness and candor that not every team is comfortable with. But you’d better get comfortable or your startup will likely collapse.
I’ve talked to a lot of companies about StartupTherapy™ and recently wrote a summary linking to many posts about StartupTherapy™. Upon reflection, I realized that I had never fully described here how to conduct a StartupTherapy™ session! So, this is the first in a series of posts to help you run your own StartupTherapy™ process with your founding team!
I will say that this process works for startups, other teams and non profits! Try it and see!
It’s emotional, it’s hard, and it’s worth it!
When did Entrepreneurship become Emotional?
When did Entrepreneurship become Emotional? Well, when entrepreneurship started. Entrepreneurship tests you mentally, physically and emotionally and it certainly tests your relationships. When I first started talking about StartupTherapy™, I originally called it “The Emotional Life of Entrepreneurs.”
I’ve found that when the going gets tough, the successful get talking.
Let’s face it, the stakes are high – and personal. Entrepreneurial teams have to do a lot of “emotional” work to be successful and they have to address tough, personal and interpersonal issues. Every founder and co-founder has personal motivations, and (usually) hidden agendas. However, I’ve found that when the going gets tough, the successful get talking. And candidly, sometimes this is hard, usually this is hard.
The founding team needs to start with a foundation of honest and candid discussion, that’s why we call it “Startup Therapy™. Some key elements you want to surface in the session.
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What does each person hope to accomplish?
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What’s next (5 years out?)
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What is it that each person wants to be/do after the startup?
Things to look for that can undermine the team’s success
- Watch for diverging interests among the team
- Are there resentments or concerns?
- Is someone not really “up to the challenge” of startup life!
Here are some Founder Basics (That I Didn’t Know)
- Never have more than 3 Founders!
- Advice from a VC – he’s absolutely right!
- You can build a team, don’t have to have everyone as founders
- Founders get more reward because they take more risk!
- Have a Buy-Sell Arrangement – No Lost Founders
- Shares are founder’s incentives for the WORK TO COME – not for the founding of the company
- Agree up front on the terms for buy back of founders shares
- Assume that at least one of the founding team will step away
Some more Founder Basics – (That I Didn’t Know)
Jim Collins has always said – “Get the right people on the bus“ (and the wrong people OFF the bus!)
As one of my Directors said, when things “go wrong” if everyone behaves graciously, the relationships can still stay intact. Be one of those people who behaves graciously when things go wrong!
If you want advice and support as you build out your team, check out our StartupTherapy™ Resources and Help page! Lots of great help.
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