A common failure for entrepreneurs is they “live in a vacuum,” as Steve Tobak put it in his post on Entrepreneur. Noteably, they become razor focused on their idea and vision, and lose sight of everything that needs to be done. They do not focus on build the right start-up team.
To run an efficient team, you only need three people: a Hipster, a Hacker, and a Hustler. — Rei Inamoto
Founding a new organization requires entrepreneur skills along with creative, design, systems, research, marketing, and business expertise. However, it is very rare that all of these skills — talent stack — exist in one person. Moreover, the lifeblood of any startup is sales, marketing, and general business savvy. Once again, these are often specialized competencies. Being comfortable at shaking hands, giving presentations, charming prospects, finding funding, and doing market research is rare in one person. More than entrepreneurial skills are needed to keep the entity in business as it finds its feet.
You may need a team of three or four people to cover the full spectrum.
“Successful tech startups excel in two key areas – programming and style. It is a rare thing to have a masterful programmer who’s also at the cutting edge of creative image, design, and well… just knowing what’s cool. Likewise, it’s rare to find a genius graphic designer who’s also a programming whizz. The best are usually specialists.” — Hipster + Hacker + Hustler = Your Tech Startup Dream Team
Moreover, the great teams I have been a part of have these skills within the collective talent stack plus more. They also have a big-picture thinker, entrepreneurial skills plus excellent research — a Hound. So to make sure your startup thrives, validate that you have these skills. What competencies can you personally cover and which one do you need to add?
The Hipster:
Usually working their way into the mix as the designer or creative genius, they will make sure the final product is more appealing than anything else out there.
The Hacker:
The one most likely to sit quietly through a board meeting until uttering the three sentences that answers the all-important question of "how?" the new idea or initiative can be brought into reality.
The Hustler:
Intimate knowledge of the market, and want motivates customers to buy. Their constant question of "It is cool, but is it something our partners and clients want?"
The Hound:
Emphasizing primary research and compiling evidence (e.g., user quotes, usage statistics, or revenue generated — meaning customers ‘buy’ or ‘do not buy’ your product) directs the team towards what will work and away from what will not.
When things are not going according to plan and you need to pivot, the Hound can identify new patterns to move forward. The Hipster brings the creative design and cool factor, the Hacker brings their technology solutions, and the Hustler finds the right way to package it all up and take it to the masses in the form of sales and partnerships, it is a combination that is tough to beat. The entrepreneur keeps the vision alive and motivates the team to keep going.
How do you know have all four covered?
Our talent analytics helps the founder understand their behavioral traits – first as an entrepreneur and then as a hipster, hustler, hacker, and hound. We identify the gaps if any. The founder can use our analytics to determine the skills they have covered and then in selecting the right partners and critical personnel to fill the gaps that may exist.
Our talent analytics will help you decide. We have four validated benchmarks
- Entrepreneur
- Entrepreneur High-Risk Ventures
- Franchise, Retail Owner
- Franchise, Driver-Dealer
In a franchise model, the most of the work of the hound, the hipster, and the hacker has been done for you by the franchiser. The funds needed to get the franchise operational are known. You need the business acumen to leverage those resources and your hustler skills to get the business up and running. We also help an organization assess if an individual will be a successful franchisee.
Franchise or Startup which business model is right for you?
While many associate entrepreneurship with starting a business from scratch, purchasing a franchise is often a less risky way to become an entrepreneur. However, do you have the right personality for a franchise?
Both franchising and startups have their advantages, but the best way to determine which business model will suit you is to know your behavioral strengths, skills, life plan, and dreams. Someone capable of thriving in a startup may feel too constricted operating within a franchise model, while someone else who could succeed inside a supportive franchise system may wither under pressure and risk of going it alone.
The article Franchise or Startup? sets out five indicators to help you assess if you are an excellent candidate for franchising, followed by four that indicate you would be better off starting your own business.
You like working within a system.
At its core, the value of a franchise is its proven model of success. While a franchisee is responsible for the day-to-day operations of their franchise, they operate within a system that provides operational support, marketing and training.
You want to win now.
Beyond an established model of success; franchises offer brand awareness, which means customers are more likely to be familiar with your product or service from day one. If you are on the back end of your career, franchising might make sense.
You do not want to reinvent the wheel.
It is common for most people to be unsure which franchise is the best fit for them. Selecting one that fits your skills and life goals is much easier than trying to figure out a business to start by yourself.
Scalability is appealing.
With many franchises, if you can successfully operate one store, you can likely manage multiple outlets. Though it is possible to scale a startup, it will probably happen faster through franchising because the blueprint is already in place.
You are not quite ready to leave the job force yet.
Several semi-absentee franchises may be worth exploring. A semi-absentee model allows you to work on the franchise for 10-15 hours per week while continuing full-time employment. Then when the time is right, you can exit your day job to focus entirely on your business. Consider our career assessment to help you discover where you can find career satisfaction.
Strat Your Own Business
If these features do not appeal to you, here are some reasons you might be better served to start your own business.
You want the freedom to do things your way.
Working within a franchise system means following guidelines to keep your franchise license. If you are someone that wants to do everything your way, franchising could feel too restrictive.
You already know what you want to do and how to do it.
If you have already got your business model and are confident that you know how to make it succeed, paying a fee for a franchise’s business model will be unappealing.
You are skeptical of franchising.
You just cannot accept franchising as the path to business ownership. That is OK; franchising probably isn’t right for you.
The higher risk/reward and problem-solving opportunities excite you.
Are you someone who loves it when things go wrong because it gives you the chance to figure out the solution? When you are running your own business, all of the problems are yours to solve.
You will invest a lot in a startup or franchise. Invest a little to determine your strength and know the gaps that you must fill for success.
Want a High-Performance Team?
We are all about evidence-based decisions. We use talent analytics and best practices to create high-performance teams.
Complete Leadership Series
An evaluation of executive potential using SuccessFinder. Reports provided: interaction styles, career success, career summary dynamics, the ladder of leadership.
Project Team Development
Validation of purpose and task clarity, team composition using SuccessFinder, feedback session, team questionnaire, team workshop.
Project Team Development
Assistance in organizing future teams to have employees working in areas where each has the best opportunity to succeed, assessment of performance traits and competencies to get the right mix of team members using SuccessFinder.
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