Good founders are deeply rooted in the realities of their lives. They have excellent powers of observation. They need them – how else would they discover everyday or scientific problems that need solving? They are strongly oriented towards reality – and don't work in their backyard garage like the classic Gyro Gearloose. Only those who go through life with a bright mind and open eyes will achieve long-term success. A guest article by Thyra Andresen from BayStartUP, published in magazine startUPdate.
How do founders differ from average consumers?
"Founders are willing to take a long and hard road for their vision and their company. For founders, there are no unsolvable problems, only challenges that can always be solved with creativity and willpower,"
says Felix Harteneck from ParkHere, who have developed an energy-autonomous system for parking space management. Founders see the problems that exist. They aren't content with doing things the way they've always been done. They take a solution-oriented approach and refuse to face the difficulties that stand in their way. Obstacles are challenges and no reason to abandon a great idea. They are convinced of what drives them. They put themselves through stress and trouble, usually for years, and break with conventions.
Is there an ideal founding team?
"Successful startups are built as a team. A single founder—of course, that's possible, but with all the things and decisions that have to be done and made, it's not an ideal starting point. A core company of two or three founders who complement each other in their knowledge and experience is ideal."
says Dr. Carsten Rudolph, Managing Director of BayStartUP. This is also reflected in the numbers. Teams of two or three who, for example, take advantage of the EXIST Founders' Grant, are successful in implementing their business idea in 80 percent of cases. That's at least what you read on Gründerszene.de. For solo entrepreneurs, this number drops to 66 percent.
“The formula for success for an ideal team has not yet been written,”
says Otto Hopfner, Venture Capital Project Manager at BayBG.
"But there are criteria that increase founders' chances of success. These include, among others: entrepreneurial experience, a clear shareholder structure, the initial situation where operational managers—and not behind-the-scenes idea generators—hold a significant share of the company's shares, and a founding team with diverse, complementary skills."
Founders often have brilliant ideas but then fail in sales. A well-functioning management team not only has sales experience but also acts as a role model in its leadership role. It demonstrates motivation, employee accountability, decision-making, and a willingness to embrace change. Startups should be open to seeking advice at the right time. This could be from external experts or an advisory board.
Disruptive CV
Three years of bachelor's degree, abroad, two years of master's, then graduating from university with a great idea. Found a startup, take off, realize your potential, and ideally make a lot of money. This idea may be true in exceptional cases. But the founders who are particularly successful are those who have gained real practical knowledge in an industry and who are particularly solution-oriented. The path of a degree is secondary – what is more important is the drive and the will to really delve into topics that interest you and to adopt the perspective of those for whom you want to develop a solution. It's of little use if a startup has a great innovation for a production process that then doesn't sell because the founders don't understand the purchasing decisions and factory processes.
Founder versus team
There are people who have a clear answer as to why they're taking such a risk with their own money or even a steady job. And there are those who aren't prepared to work through their weekends for years and repeatedly play the role of tumbleweed after difficult financing rounds.
Therefore, a clear distinction must be made between founders and team.
"By separating our team locally, we differentiate between the core founding team in Munich and the co-founders in Regensburg. In a weekly team meeting, all strategies conceived in Munich are coordinated with the co-founders. The responsibilities of the Regensburg team are separated thematically and professionally from those in Munich. Work packages are coordinated through shared monthly goals."
Felix Ballendat explains using UrmO (formerly UrbO, editor's note)His team has developed a portable electric vehicle as an individual mobility companion in the city.
Not all drivers have to be founders
A separation between founders and team should ultimately also be reflected in a startup's legal structure and the shares to be allocated. If external financing is sought, startups should consider not only their idea but also the perspective of potential investors. Investors prefer a shareholder structure that's as simple as possible and a clear focus of company shares on the people who actually act—the future managing directors in the founding team.
Here, startup founders must consider very early on who in the founding team should receive real company shares and how they should distribute them.
“We have already seen great mathematical models for calculation, but they have not necessarily increased satisfaction,”
says Rudolph. Ultimately, the entire team must be able to see each other in the eye after the distribution and still believe the distribution was correct later on. This is very important. Caution is advised when awarding many very small shares to friends, family, or small investors. Too many shareholders always pose a development risk for the company – and not just from an investor's perspective.
Ultimately, an idea can be as good as it wants. Founders need to work together well and openly address and discuss differences, values, and ideas with each other to make their idea fly.
Success criteria for founding teams
The founders’ strengths complement each other
Where do our competencies lie? Do the strengths of the founders and team members match their respective roles and responsibilities?
Reflect on team development
How do each team member understand their roles? Are any missing ones? What are the rules of engagement when interacting with each other? Are we different enough?
Clarify your idea of life goals
What do all of us on the team want in the short term? Can we invest time, or is a two-month vacation in Asia more important? Do our needs match? What do we want long-term? To build and manage an international company, or to retire at 50?
Exchange about your own values
What drives me, what motivates me to get up in the morning and sit down at the computer or to tinker with my product? Do my colleagues share these values? And if not, do we need to redistribute roles? What does this mean for the future of our company?
