If you are starting a business, or thinking about starting a business, then repeat after me: "TMP, TMP, TMP." Repeat this until you never forget it. A failure to keep this in mind at all times will generally lead to the failure of your endeavor.
TMP stands for Team, Market, and Product. The team you put together, and the team that you have on a day to day basis, will have the greatest impact on the success of the company. Investors, managers, and experiences entrepreneurs all know that the market and product can be great but a lousy team will kill all potential. Unlike the game "Rock, Paper, Scissors" There is no circle of superiority here. A good team will trump market or product problems most any time.
Like many people I have subscribed to a few hundred blog and website RSS feeds. I group them so that I can find the type I feel like reading. I have a top 10 that is shrinking to a top 5 since I seem to have less time to read and find less value in blogs these days. As I was reviewing some of the VC (Venture Capital) group feeds I came across a great article by Bill Burnham written back on the first of this month. (That is one of the great things about RSS, it keeps track of what is new to you.) His article, about the changes and challenges at Stratify from 2000 to the sale announced 11/1/07 to Iron Mountain, is very educational.
Bill tells the story of a company founded very near the end of the dot-com boom. Having ridden that wave from the beginning, I am very familiar with the events and the climate that existed at that time. Rather than repeat his story I will just say that it shows the value a great team presents, even if they don't have the right product at first. I highly recommend reading his post.
Of course, the difficult thing to do is to build a great team. Often one has to choose from those available to them at the time. Resources, money, are often limited and a trade-off will be made between need and ability. Still, a bit of effort can often turn over the rock that hides the right person for the time and need. Hiring friends can seem like a good idea, but more often, it turns out to be a bad idea. Start-up founder groups are like rock bands. Everything is great until the stress starts to wear on everyone. It does not take much to create lasting animosity.
What defines a great team? It really depends on the market and product being addressed. If you are going to build a world class Internet based business, then you need skilled programmers. If you are going to make the next great pharmaceutical to cure a disease, then you need top tier PhDs in biology and chemistry. One without the other is often akin to trying to clap with one hand.
Keeping a quality team means constant vigilance. It is as important to have the right people for a going concern as it is for a start-up. Some people who were essential at the beginning may not be so critical later on. As conditions change, the composition of the team has to change as well. I am not advocating dumping people, but rather I am saying that finding the best place for everyone to contribute is a constant need for a company as it matures.
What do you do to keep your team up to date?
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