How to Choose the Right Co-founders for Your Startup
P.S. You can read my latest article now: What Exactly Is a Product?
The vast majority of successful startups have 2–4 founders, and not just for kicks. Co-founders keep you accountable in the void of structure that is creating a startup. They’ll help you stay on track instead of getting wrapped up in minor decisions, like what color your homepage should be. Plus, the right co-founder will provide much needed moral support as you careen along the roller coaster of startup life.
Not only is a good co-founder important from a personal perspective, it’s something investors look for. Co-founders prove that your idea is engaging enough for others to get behind. It also gives your company better brainpower. If you partner with someone who has a skill set complementary to your own (which you should always do to avoid org chart overlap), you’ll be able to make more thoroughly thought-out decisions.
So now that you know why you need a co-founder, where do you start? While it might seem like a sound idea to start a company with your best friend, sibling, or that brilliant engineer you recently met, doing so could easy turn into an entrepreneurial horror story. I’ve seen it happen to friends — and to myself. Over time, I’ve learned what to look for in co-founders, and below is the time-tested recipe for business partner bliss.
The Recipe for Business Partner Bliss
Begin with logistics. Each founder should have a year’s worth of cash saved up. This will let them focus on the startup without being distracted by financial woes, even if cutting down salaries becomes a necessity. You also need people who are hands-down ready to quit their current jobs. The early years of startups are tough, and you need a team that’s ready for adventure and 100% behind the vision you’re pursuing.
Not only do your co-founders need to get behind your product, they need to believe in you as a leader. Ego is dangerous, both for your and your co-founders. Pick partners who are confident, yet humble. If your co-founders get upset when you take the lead or can’t accept mistakes and criticism, you’ll find yourself in migraine territory faster than you run to the drugstore for Advil.
Ideally, your co-founders will be people you’ve successfully worked with before. There’s no better way to be sure of a person’s work ethic and personality than to have already seen them in action. Plus, the years you’ve spent building a relationship will play an important role. Startups do to co-founder relationships what puppies do to socks; they try to pull them apart. Having a tightly woven friendship will keep your startup from fraying at the seams.
“Startups do to co-founder relationships what puppies do to socks; they try to pull them apart.”
This doesn’t mean that starting a company with your best friend equals instant success. You need to make sure your co-founders are persistent. Startups never stop delivering surprises. Big contracts get dropped last minute, and profit doesn’t always roll in when you expect it to. You need co-founders who are ready to try and try again. When the founders of Airbnb had maxed out their credit cards during the Obama-McCain election, they didn’t give up; instead, they began selling Obama O’s and Captain McCain cereal in order to raise extra revenue. Both you and your co-founders need to be prepared to keep your vision alive even when times get tough.
Not sold on how important determination is? Take it from Y Combinator co-founder Paul Graham, who considers this trait to be one of the key factors in success: “We thought when we started Y Combinator that the most important quality would be intelligence. That’s the myth in the Valley. And certainly you don’t want founders to be stupid. But as long as you’re over a certain threshold of intelligence, what matters most is determination. You’re going to hit a lot of obstacles. You can’t be the sort of person who gets demoralized easily.”
“As long as you’re over a certain threshold of intelligence, what matters most is determination.” — Paul Graham, Y Combinator co-founder
This isn’t to say that all forms of tenacity are terrific, though. Make sure your co-founders aren’t so blinded by their vision, they forget to be flexible. The unpredictability of startups require superhuman adaption skills. Choose co-founders who can switch directions in the blink of an eye and all obstacles will instantly be that much easier to conquer.
Another thing that helps overcome obstacles is imagination. Of course intelligence is important, but the ability to think creatively often trumps book smarts. Pick co-founders who don’t just think outside the box, but actively try to obliterate it. If you and your co-founders can feed off each other’s unusual ideas, you’re more likely to strike upon solutions others haven’t thought of. Any novel idea that’s easy to think of has already been tried. The unexpected will help set your company apart.
These unusual ideas won’t always be comfortable, so look for co-founders who like to make a bit of mischief. But let’s be clear: you want teammates who delight in breaking rules — but only the right ones. They must have integrity alongside audacity. Achieving greatness without taking calculated risks is like starting a fire with wet matches — pretty much impossible.
“Achieving greatness without taking calculated risks is like starting a fire with wet matches — pretty much impossible.”
Ideal Co-founder Qualities, Recapped
There you have it, the most important qualities to look for in a cofounder. Let’s recap these qualities to give you a good, high-level look at what to keep in mind.
Look for cofounders who:
- Are ready to quit their current jobs
- Have 1+ year(s) savings
- Are people you’ve successfully worked with before
Don’t compromise on finding the following qualities:
- Confident, yet humble
- Persistent and determined
- Flexible
- Ability to think creatively
- Moral, but maverick
Each founder might find they have slightly different requirements of their co-founders, but the qualities covered remain a constant. The road ahead for your startup will undoubtedly have challenges, but if you vet your co-founders by the qualities covered here, dealing with company-killing business partners won’t be one of them.
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Thanks to Mikko Alasaarela, Annie Chang, Christian Berney Sanz, Hannah Rothstein, Victor Mathieux, Kate Larsen and Katherine Krug for helping with this.
