Building a New Venture

Team

Elements of a New-Venture
Team

The Founder or Founders

Size of the Founding Team
Team working together for the first
time?
Team composition: Homogeneous vs.
Heterogeneous
The Right founding team: 24members
Qualities of the Founders
Founder with Management Education
Founder with Technical Education

Common mistakes in
constituting founding team
Placing unqualified friends or family members in
management positions.
Assuming that previous success in other industries
automatically translates to your industry.
Presenting a one man team philosophymeaning
that one person (or a small group of people) is wearing
all hats with no plans to bolster the team.
Hiring top managers without sharing ownership in the
firm.
Not disclosing or talking dismissively of management
team skill or competency gaps.
Vague or unclear plans for filling the skill or
competency gaps that clearly exist.

Selecting Key Employees

Roles of the Board of

Directors
A panel of individuals who are elected by a firms
shareholders to oversee the management of the
firm
Payment might be given in company stock
Provide guidance to the firm
Lend Legitimacy in eyes of other (customer,
investors, etc.)
Should posses:

Strong communication with the Founder

Strong personal and professional networks
Complementary mix of talents
Respected in their field

Board of Advisers
A panel of experts who are asked by a firms
managers to provide counsel and advice on an
ongoing basis
No legal responsibility for the firm and gives
nonbinding advice
The board might meet (online/offline) as per
requirement of the firm in lieu of small
honorarium
Examples of expertise: international business
management, scientist, S/W & H/W experts, etc.

Consultants
Individual who gives professional or
expert advice
Advice on complex issues such as
patents, tax planning, engineering
consultation, etc.
Fully
paid
consultation
or
free/subsidies consultation (govt.,
NGO, university, etc.)