Start astartupit 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, the collaborators will be essential for the development of the value proposition that your company intends to offer to the market.
However, besides the collaborators, there are other indispensable people in the growth of your startup: your partners. The choice of partners may seem like a simple matter, often intuitive, others, just convenient, but don't be mistaken: the partner is a determining factor in the success or failure of a startup.
Data from the PitchBook platformthey highlight that 90% of the startups launched last year failed. With that, just over $27 billion in venture capital was invested in 3,2 thousand startups that failed in 2023, according to the study. So, so that your startup does not fall into this statistic, choosing a good partner is essential.
- Complementarity of skills
The choice of partners with complementary skills is essential for the success of any startup. While a partner can be a technology genius, the other may have exceptional skills in marketing or finance. This complementarity allows the startup to address different aspects of the business with expertise, increasing efficiency and effectiveness in operations.
Consider a technology startup. A partner can be responsible for product development, while the other focuses on market strategies and fundraising. This division of responsibilities based on specific skills ensures that all critical aspects of the business are managed effectively.
An example of this is the case of Airbnb. Cofounders Brian Chesky and Joe Gebbia brought complementary skills to the company. Chesky, with your background in design, and Gebbia, with your expertise in marketing and user experience, they complemented each other perfectly. Nathan Blecharczyk joined them, 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 the startup partners share similar values and vision. Substantial differences in work ethic or strategic direction can cause conflicts detrimental to the startup.
Partners with aligned visions tend to work better together, make more cohesive decisions and navigate all the challenges involved in the launch, growth and expansion of the startup. A clear alignment helps to define the company's culture from the start, what tends to attract talents and investors who share the same vision.
A startup Quirky, founded in 2009, it 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, that 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 and transparency
Trust is the foundation of any successful business relationship. Therefore, for your startup to grow, partners need to have trust. Partners who trust each other can delegate tasks more effectively, focus on their respective areas of expertise and feel confident in their decisions.
Transparency in communications and operations is essential to build and maintain that trust. Regular meetings and open discussions about the state of the company, the challenges and opportunities are best practices to foster a trustful environment.
A successful example where trust among partners was fundamental for 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 almost a decade before founding WhatsApp, what provided them with a solid foundation of mutual trust that helped the startup grow and become one of the largest messaging apps in the world.
- Resilience and mutual support
The path of a startup is filled with challenges and twists. One hour your business could be one step away from taking off, and in the other one a step away from closing. Resilient partners who provide mutual support are more likely to overcome these obstacles. Team resilience strengthens the startup's ability to adapt to changes and continue growing.
In times of crisis, partners who support each other can make the difference between overcoming an obstacle or the collapse of the business. This strong partnership provides the necessary strength to persist and find innovative solutions.
The history of Netflix is an excellent example of how resilience and mutual support among partners can lead to success. Founded by Reed Hastings and Marc Randolph in 1997, Netflix started as a DVD rental service by mail. In the early 2000s, the company faced significant challenges, including the dot-com bubble and intense competition from Blockbuster, the giant of the sector at the time.
Hastings and Randolph demonstrated incredible resilience and adaptability. In 2000, Hastings suggested selling the company to Blockbuster for $50 million, but the offer was declined. 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 crucial in times of adversity. They maintained focus on innovation and adapting to market changes. This ability to overcome obstacles and continue to evolve was a key factor in the company's explosive growth.
Furthermore, Hastings and Randolph provided mutual support in strategic and operational decisions, strengthening the team and ensuring that the organization remained united during times of crisis. Today, Netflix is one of the world leaders in video streaming, with millions of subscribers worldwide.
- Networking 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 significantly expand the reach of the startup. A partner can have important connections in the technology industry, while another can be well-connected in the marketing or sales sector, creating a robust ecosystem of support and opportunities.
The PayPal, co-founded by Peter Thiel, Max Levchin and Elon Musk, it is a perfect example of how the partnership of associates with an extensive network of contacts supports the growth of the startup. Peter Thiel brought an extensive network of contacts in the financial sector and in venture capital. He is well-connected in Silicon Valley and has experience in investments and financial strategy, what helped PayPal gain funding and credibility in the market.
Max Levchin, on the other hand, he is a technology genius with a deep understanding of cryptography and security. Your network of contacts is centered around technologists and developers, what was crucial for building PayPal's robust technical infrastructure. Elon Musk has a strong network of contacts in the tech sector and an exceptional ability to attract media and investor attention. Your ambitious vision and ability to create buzz helped position PayPal as an innovative and high-growth company.
- Workload distribution
The choice of partners allows for a balanced distribution of the workload. Starting and operating a startup is a monumental task, and dividing responsibilities can prevent burnout and increase productivity.
Partners who share the workload evenly are able to focus better on their specific areas, ensuring that no aspect of the business is overlooked. This results in a more efficient operation and more sustainable growth.
Zirtual was a company that offered virtual assistant services for 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 a workload overload and a lack of focus on essential areas such as finance and cost control.
In 2015, Zirtual had to abruptly suspend its operations due to serious financial problems, and it only continued operating because it was bought by Startups.co. The lack of a balanced division of the workload 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 strong networks can significantly boost the growth and success of a startup. In a highly competitive business environment, the right partnership can be the differentiator that takes a startup to market leadership.
