Forming a Business Team (Overview)
The business team either refers to the business managers or, in the case of most startups, everyone working on or in the business. In the early stages of a startup, the business team is generally a close-knit environment. Individuals are working diligently together, usually for little or no salary, to carry out the business operations. This environment requires a special type of bond between the startup members. As such, forming a strong, compatible business team is the single most important aspect of successful startup ventures.
Forming a team is about “fit”. I define fit as the complimentary abilities and personalities of individuals involved in the business. Fit is particularly important in early stages when the business consists of founders and early employees. As the business grows larger the sense of camaraderie among all team members may decrease. Startup firms must work diligently to maintain the entrepreneurial spirit or personality of the business as the team members grow.
Considerations for Formation of a Business Team
The startup team forms continuously throughout the lifecycle of the business. Below is an overview of the stages of team growth that a business undergoes.
- Culture and Fit
- Founders & New Owners
- Early Employees and Contractors
- Ownership and Control of Founders
- Rights of Owners
- Organizational Documents and Ownership Agreements
- Duties of Owners