Travel companions:
Choosing Members. Part 2
We continue our journey with new tips for choosing the ideal travel companions, so you can bring real added value to your business thanks to the people you decide to start it with.
RULE FIFTH: Partners you can trust.
For me, this is actually the most important rule: there must be complete trust between the partners, with the utmost #respect and #unity of purpose for the common cause, that is, the company. Otherwise, my advice is to end the situation quickly, even if it means giving up something important. As soon as you realize you're no longer on the same page and can't provide the contribution you think you can, leave immediately, even if things seem to be going well: the wind changes quickly, and a single decision by the other partners is enough to jeopardize the project and the company.
At the beginning, trust is not lacking, and often many things are let slide because the focus is on the goal, on making the company work, and on being able to carry the project forward. But as the company grows, trust becomes even more crucial : it can happen that some partners "exploit" the company to their own advantage, since things are moving forward anyway.
Often, especially in complex companies, this fundamental rule is forgotten: partners remain attached to the project out of convenience or partial interests, not for the good of the company. The result? They become distracted, time is wasted on non-core activities, bureaucracy takes over, and almost without realizing it, everything becomes more complicated. The decision-making process slows down, the company slows down, and little by little, energy, if not even market leadership, is lost.
The company's success is no longer the priority; it's no longer about being the best, having the best ideas, or surprising others once again. Trust, instead, implies respect: without it, bad things happen, often unheard of.
Traveling Companions: Choosing Members. Part 2
SESTA REGOLA: Compagni di viaggio con un inizio e una fine.
Partners are always "temporary." How many of you, when you start a company, think it might end or that the partners might part ways one day? I believe we're all focused on the present and the immediate future, full of #enthusiasm and ideas, with empty pockets because we've invested. But the reality is that the right thing to do is to define from the outset what you want to do in five or ten years : whether to stay, or exit if opportunities arise or certain #objectives are achieved.
It's not easy to reflect on these things: you need to have experienced them and have the maturity to establish clear rules when partners have different goals or goals that change over time, making it necessary to separate. After all, the relationship between partners is not a marriage , and even those today only rarely last a lifetime.
When you start a business, you don't know exactly what will happen or where you'll end up . Sure, in school or with consultants they'll tell you to write a business plan, define some numbers, and stick to them, but in reality, you're tackling a project with a thousand new variables, often unclear from the start. Especially in highly innovative companies, rather than following a linear path, you're traveling a road full of curves, forks, and ups and downs.
However, there are some small rules that allow members to reduce their commitment, no longer be operational, or leave without causing too much distress . It's not easy to fire a member, replace them, and do so quickly for the good of the company , so #planning is essential: not so much for #growth itself, but for managing unforeseen events.
With the right partners at your side, all these "unexpected" changes will be handled with common sense and intelligence, without major disruptions. Trust me: it's natural to change travel partners over time , precisely to find the right shareholder structure for the size and needs of the company, which change over time.
SEVENTH RULE: Members with a precise governance.
Well, you've finally decided on the shares. Is there a majority shareholder? Are you two partners with 50%? Three with 33%? Or do you have a more complex team? It's important to understand from the beginning who makes the decisions and if you're comfortable with it : are you more suited to #leadership or simply being a #follower?
Mind you, I'm not confusing you: shareholders are one thing, directors are another. But ultimately, the "delegated" directors always answer to the majority shareholder and are unlikely to accurately represent the entire shareholder base.
It's obvious that directors have assigned powers, and shareholders aren't required to get involved in governance matters: they don't have an operational role. However, I assure you that they still influence the company's decisions, for one reason or another, especially when things aren't going well.
Governance concerns the company and all its stakeholders, but it also concerns the relationship between shareholders , because important decisions are made in boards of directors and shareholders' meetings. Too often, however, the relationship between people and the fundamental principles on which the company is based is lost sight of.
EIGHTH RULE: Yes to vehicles and funds but with clear rules of engagement and objectives.
Sometimes, companies need resources to make a qualitative leap that they can't achieve on their own , or that would take too long to obtain. For example, when they want to open foreign markets, stores, or product lines. In these cases, it may make sense to seek the support of external resources.
The first decision to make is whether to retain governance or sell it . Once this is clear, and your personal and company goals for the next two or three years are defined, you need to choose the most suitable vehicle for this stage of the journey. This opens up a huge chapter, which I don't want to discuss in detail, but I can offer some fundamental advice: take your time. Consult with entrepreneurs, advisors, and professionals who have already been through this, listen to multiple opinions, and think it through calmly. This is a decision that will impact your life and work for the next few years : you need to feel comfortable and at peace. And, in any case, always create options for possible future situations.
And yes, you can tell I've grown grey over these things. I've had #positive and #negative experiences with my partners, and that's why I can be critical and objective when they ask me for help in making decisions . A partner, in the end, can be your greatest support towards #success or, frankly, your #ruin, and sometimes that of the company you created or believed in by giving it your all, often giving up your private life, time with your children, or friends.
I believe there is nothing worse for an entrepreneur than being deprived of the ability to #choose and be free, forced instead to spend time and energy in critical situations created by others, which little by little consume and sadden you.
RULE NINTH: Partners with whom you share goals.