|Your Team - Founders, CxOs, Directors, Advisors and Others|
Towson Univ (MD) Student Launch Pad Startup Weekend*
A strong Team will not only help your business become more successful, it will impress financial organizations and the other sources of capital.
You have your core Management Team, generally Founders who are or will become CxOs, and perhaps some Advisors and candidates for a Board of Directors. Additional Team Members are:
- CxOs – CEO, COO, CTO, CIO, CMO, CSO (Chief Sales/Science/Security Officer), CCO (Chief Capital/Creative Officer), CFO and CLO. Some Founders have grown to realize that being CEO is not the best use of their time or talent – CTO, CIO or CMO could be better “positions.” Finding and attracting the additional CxOs to round out the Management Team is not easy, but will create a stronger Team in the long run.
- Board of Directors, if wanted or required for your corporate structure, have fiduciary responsibility as do the CxOs. Don’t overwork your non-Founder and non-CxO Directors with meetings and other engagements. Ask only 2-4 hours per month to review, make constructive suggestions, encourage and promote to company, until opportunities demand more time.
- Advisors – as a Board or independent – typically do not have fiduciary exposure. Ask only 1-4 hours monthly. These people are powerful additions to your Team.
- Others – Professionals (Attorney, Accountant, Bookkeeper), Partners, Coaches, Suppliers and Interns.
- Many of these Team Members are excellent CxO and Manager candidates.
- Show off names, pictures, summaries and online profile links of all your CxO-level Team in your Overview and Pitch Deck to show your powerful and deep “bench.” Also add names and short summaries of your Manager-level and other Team members in your Business Plans – they’ll feel appreciated, and it further increases the size of your Team “bench.”
There are many Creative Compensation Plans:
- CxOs – ramp up from stipend, to a bill-paying salary plus profit sharing via small ownership equivalent to $200K-$500K in 5th year – more if bring Capital, Intellectual Property or key/voluminous customers to the table.
- Non-employee Directors and Advisors – tiny ownership equivalent to $30K-$100K in 5th year.
- Others – reasonable fees or salaries, reduced by equity or profit sharing which could be more in the long run to off-set the waiting and risk.
- Overpaying, especially early on, is frowned upon by financial sources expecting their principal returned with a reasonable ROI or interest.
- All earn their stake as they participate over a period of time – six months to two years, depending on the ramp up of the company product or service.
Where do you find excellent people?
- Networking: friends, family and associates; professional groups; social media – good way to let your social media friends know your expanding; Meetup, such as Founders Lab; LinkedIn – groups and individuals – see what they are saying in posts and comments (via their activity logs); Google+, Twitter, etc – check groups/lists, activity logs, comments, likes and shares; especially notice those looking for opportunities or asking to be on boards.
- Advertise on Craigslist, other free outlets and trade publications, all of which can give very good exposure.
- Recruiters may be necessary for critical positions.
More to come on the Startup 2.0™ Steps.
Feedback and suggestions are always appreciated here, by message or email.