For the many entrepreneurs considering business formation this year, it might be wise to remember that an uncle who is in business might not be your strongest co-founder. According to Business Insider, a weak founding team is one of the leading causes of failure for new companies.Startup expert Simeon Simeonov says that too often companies arrogantly believe their initial business plans will be a recipe for success. Entrepreneurs should realize that their agenda will likely evolve as they delve deeper into the business formation process, rendering some original co-founders useless.
To avoid this problem, Simeonov suggests that entrepreneurs avoid the common mistake of bringing in too many founders to meet the specific goals of their original visions. He told Venture Hacks it’s better to start by bringing in founders with general experience and reserve hiring specialists until the company is started.
Additionally, he suggests that entrepreneurs considering business formation remember to cast a wide net when looking for partners. Using a broad network can help connect future business owners with people who can bring invaluable expertise to their teams.
These tips could really payoff, as Business Insider suggests investors pay close attention to founding teams when deciding where to contribute funds.