Who Should You Work With?

Whether it is investors, advisors, employees or other people that will really influence your company, it is very easy to get the selection of partners wrong. Why?

1. Investors- often times people who are in search of capital for their startup idea are so focused on getting the money in the door, they don’t focus enough on the character of the people they are working with. After all, all money is green- right? Well, maybe green, but not equal when it comes to investing in a startup. The reality is that investors are — or at least should be- more than a checkbook. They should be people who can contribute to the growth of the company, either through strategic partnerships, adding insights lacking in the existing team, or by being an agent to promote the company. But above all, they should have the integrity that you would require in any other member of the team. Philosophical alignment on what it means to be a virtuous business will become important when things go sideways. Who you select as your investors sends a signal to the market about who you are- so choose those connections wisely.
2. Advisors- why would you want advisors for your company? Typically there are two reasons- one is because you are actually in need of advice or the connections that the advisor can bring, the second because there is a credibility that the advisor brings to the effort. A word of warning on this one- if the “credibility” they bring is really that they are well known, that isn’t enough — it may be helpful in some ways but unless that integrity alignment is there and they are people who will really engage effectively with you, it isn’t worth it. It could be far worse for your company to have someone who is a “big name” but doesn’t actually help you — or worse could do damage if they don’t conduct themselves in a way that is indicative of how you want your company to be represented. It is for companies as it is in personal interactions, reputations take a lifetime to build and a moment to destroy- so guard the reputation of your company as much as possible!
3. Employees- it is so easy to gloss over aspects of an interviewee that are inconsistent with the culture you want in your company, if they have a really impressive resume, or they come at a good price, or you desperately need someone in that role. But time and again it has been proven that really focusing on developing a company culture that reflects real virtues — and picking people who want to work in that environment because they embody those virtues- will win every time.

I had the pleasure of hearing Ray Dalio speak earlier this week. He talked a lot about how to make good decisions- if you haven’t read his “Principles- Life and Work” I do recommend them. I read it years ago when it was a pdf on the Bridgewater website- now it is also a book. He is clear that we each need to develop our own Principles- this is not a one size fits all sort of deal. However being clear on what the decision process is in your organization (and your life!) is an important step in making successful decisions. Nowhere in an organization is this more important than in making decisions about who you work with- or for. Life is too short to work with people who make you miserable or are lacking in integrity. We have a choice — and when building a company we have a responsibility- to make the best people choices we can.