Permanent link for It Takes A Village on November 17, 2023

No entrepreneurs have the experience, know-how, and time to build a concept into a full-fledged business that pays its own way. Most entrepreneurs have expertise either in business management or in the technical aspects of their business concept, but not both.

Most entrepreneurs are trying something new, so it's completely normal and expected that they won't know everything. Still, every entrepreneur should be actively working to close these gaps and improving their chances of success by acquiring a team of the right cofounders, advisors, and mentors.

Cofounders bring complementary skills, with enough overlap in knowledge and working style that you can effectively solve problems together.

Advisors are professionals with enough subject matter expertise or business experience to guide you to the right decisions for your business. They might be experienced at raising funds, or at sales, or have deep technical knowledge needed to develop a product or service. They are definitely there to advise you in an area of your business that they know better than you do. They might work for free, but compensation is fairly common, and may be in the form of cash or stock.

Mentors have "been there and done that." Though they may have worked on a different product or even in a slightly different industry, they already know the path you're walking and are familiar with the potential pitfalls. You will typically have only one mentor at a time, and the relationship should be fairly long-term. Mentors should have more experience and knowledge than you do in your industry, or at least in your stage of growth as an entrepreneur. More importantly, they should be someone you like enough for them to function as a role model.

The importance of cofounders, mentors, and advisors really cannot be overstated; they frequently make the difference between success and failure.

 

Categories: entrepreneurship management
Posted by Thomas Hopper on Permanent link for It Takes A Village on November 17, 2023.