Initiate one startup it is a challenging journey that requires not only an innovative idea, but also the collaboration of people with complementary skills. Throughout the trajectory of your startup, employees will be essential to the development of the value proposition that your company intends to offer to the market.
However, in addition to employees, there are other indispensable people in the growth of your startup: your partners. The choice of partners may seem simple, often intuitive, others, just convenient, but make no mistake: the partner is a determining factor in the success or failure of a startup.
PitchBook platform data, e.g, they highlight that 90% of the startups launched last year went bankrupt. With this, just over US$ 27 billion in venture capital were invested in 3.2 thousand startups that went bankrupt in 2023, according to the study. So, so that your startup does not enter this statistic, choosing a good partner is fundamental.
- Complementarity of skills
The choice of partners with complementary skills is essential for the success of any startup. While one partner may be a technology genius, the other may have exceptional skills in marketing or finance. This complementarity allows the startup to approach different aspects of the business with expertise, increasing efficiency and effectiveness in operations.
Consider a technology startup. One partner may be responsible for product development, while the other focuses on market strategies and fundraising.This skills-based division of responsibilities ensures that all critical aspects of the business are managed effectively.
An example of this is the case of Airbnb. Co-founders Brian Chesky and Joe Gebbia brought complementary skills to the company. Chesky, with his background in design, and Gebbia, with his expertise in marketing and user experience, perfectly complemented each other. They were joined by Nathan Blecharczyk, a very skilled software engineer. This combination of skills was crucial for the development of an innovative platform and for the creation of a globally recognized brand.
- Alignment of values and vision
For a partnership to be successful, it is essential that startup partners share similar values and vision. Substantial differences in work ethics or strategic direction can cause harmful conflicts to the startup.
Partners with aligned visions tend to work better together, make more cohesive decisions and navigate all the challenges surrounding the launch, growth and expansion of the startup. A clear alignment helps define the company culture from the beginning, which tends to attract talent and investors who share the same vision.
The startup Quirky, founded in 2009, is an example of how the lack of alignment between partners can lead to failure. Quirky was a platform that allowed inventors to submit product ideas, which were then developed and sold by the company. However, the partners had divergent views on the strategic direction of the business. While one partner wanted to focus on rapid growth and product diversification, the other believed that the organization should focus on a smaller number of high-quality products.
- Trust & transparency
Trust is the foundation of any successful business relationship. Therefore, for your startup to grow, partners need to have confidence. Partners who trust each other can delegate tasks more effectively, focus on their respective areas of expertise, and feel secure in their decisions.
Transparency in communications and operations is essential to building and maintaining that trust. Regular meetings and open discussions on the state of the company, challenges and opportunities are best practices for fostering an environment of trust.
A successful example where trust between partners was key to the company's growth is the case of WhatsApp. The startup was founded by Jan Koum and Brian Acton in 2009. Koum and Acton had worked together at Yahoo! for nearly a decade before founding WhatsApp, which provided them with a solid foundation of mutual trust that helped the startup grow into one of the largest messaging apps in the world.
- Resilience and mutual support
One hour your business may be one step away from taking off, and the next one step closer.Resilient partners who offer mutual support are more likely to overcome these obstacles.Team resilience strengthens the startup's ability to adapt to change and keep growing.
In times of crisis, mutually supportive partners can make the difference between overcoming an obstacle or collapsing the venture.This strong partnership provides the strength to persist and find innovative solutions.
Netflix's history is a prime example of how resilience and mutual support between partners can lead to success.Founded by Reed Hastings and Marc Randolph in 1997, Netflix started as a mail-order DVD rental service.In the early 2000s, the company faced significant challenges, including the dot-com bubble and intense competition from Blockbuster, the industry giant at the time.
Hastings and Randolph demonstrated incredible resilience and adaptability.In 2000, Hastings suggested selling the company to Blockbuster for US$ 50 million, but the offer was turned down. Instead of giving up, they pivoted Netflix's business model to video streaming in 2007, anticipating a technological change that would transform the way content was consumed.
The resilience of the founders was paramount in times of adversity.They kept their focus on innovation and adapting to market changes.This ability to overcome obstacles and continue to evolve was a key factor for the company's explosive growth.
In addition, Hastings and Randolph have provided mutual support in strategic and operational decisions, strengthening the team and ensuring that the organization remains united during times of crisis. Today, Netflix is one of the world leaders in video streaming, with millions of subscribers worldwide.
- Network of contacts and resources
Connected partners can bring valuable contacts and resources to the startup.This includes access to potential investors, clients, mentors and strategic partners.
Partners with complementary networks can greatly expand the reach of the startup. One partner can have important connections in the technology industry, while another can be well-related in the marketing or sales sector, creating a robust ecosystem of support and opportunities.
PayPal, co-founded by Peter Thiel, Max Levchin and Elon Musk, is a perfect example of how partnering with an extensive network supports the growth of the startup. Peter Thiel has brought an extensive network of contacts in the financial sector and in venture capital.He is well-related in Silicon Valley and has experience in investment and financial strategy, which has helped PayPal to gain financing and credibility in the market.
Max Levchin, on the other hand, is a technology genius with a deep understanding of cryptography and security. His network of contacts is centered on technologists and developers, which was crucial to building PayPal's robust technical infrastructure. Elon Musk has a strong network of contacts in the technology sector and an exceptional ability to attract media and investor attention.His ambitious vision and ability to create buzz have helped position PayPal as an innovative and high-growth company.
- Workload distribution
Choosing partners allows for a balanced distribution of workload. Starting and operating a startup is a monumental task, and sharing responsibilities can prevent burnout and increase productivity.
Partners who share the workload in a balanced way are able to focus better on their specific areas, ensuring that no aspect of the business is neglected. This results in a more efficient operation and more sustainable growth.
Zirtual was a company that offered virtual assistant services to busy clients.However, the division of responsibilities between the founders and the management team was not balanced.Maren Kate Donovan took on many of the critical responsibilities alone, including financial management, daily operations and strategic leadership.This led to an overload of work and a lack of focus on essential areas such as finance and cost control.
In 2015, Zirtual had to abruptly suspend operations due to severe financial problems, and only continued to function because it was purchased by Startups.co.The lack of a balanced workload division resulted in management errors and operational failures that could have been avoided with a more structured leadership team and responsibilities distributed more equitably.
Therefore, the choice of partners is one of the most critical decisions in the formation and growth of a startup. Partners with complementary skills, aligned values, mutual trust, resilience and robust networks can significantly boost the growth and success of a startup. In a highly competitive business environment, the right partnership can be the differential that leads a startup to market leadership.
