As a not so new entrepreneur any more, I can now unequivocally concur with the wisdom espoused by Timmons and Spinelli (2007) who note that many entrepreneurs focus on refining their business idea and looking for the financing, and not enough attention to the third pillar of a successful entrepreneurial venture, i.e. attracting and building a strong entrepreneurial team. 

I have to acknowledge that this wisdom might not have had such strong resonance, had I not paid expensively for the lesson in my own venture. 

Two months later, following considerable conversations, she joined me in my little loft.  Given her experience of not being recognised and valued, I immediately offered her a position of Coach and Training Manager.  I thought well, maybe if she is given something that is big that she can grow into, it would motivate and inspire her.  Once again, these were my assumptions.  I have to honestly say that Rowena never really said that that is what she wanted or could do.  In fact, now looking back she constantly needed my pep talks to remind her of what she could do.  The first month was really a honeymoon for us.  I was patient and willing to show her my work ethic and what I expected.  In fact, I was actually quite relaxed and told her that as long as she performed, we would not be clock watching.  During the first month of arrival though, I was offered an opportunity to buy a recruitment agency which would complement the coaching and training aspect of what we were already offering clients.  Excited because I had Rowena to ensure that we stay on track in terms of the coaching and training, my entrepreneurial spirit took over and I bought the recruitment agency.  This meant that the team increased from 2 people to 5 people in another 2 months.  Rowena became slightly resentful as she felt that these new arrivals took away time and attention from her.  The new arrivals to the team were all motivated and excited about the opportunity to build up the recruitment agency.   Rowena on the other hand would come to work late, leave early, take off days and would never really take initiative.  She needed to be told step by step what needed to be done. Given the growing financial demands on the business, I was busy earning money with specialised consulting work.  Very soon, we had moved out of my house into a big open plan office.  Three months later, there were 7 of us working in both the companies.  The fact that Rowena was floundering became more and more apparent.  I had by then had several conversations with her to assess what support she needed.  Firstly we tried to develop very clear deliverables and workplans for her – which in the end she never delivered on.  One such time though, she had a complete turn around, she was inspired, she was getting things done, taking initiative and moving things forward.  But, once again when it came to the crunch of sealing the deal, she did not actually cross the finishing line.  It got to such a point that I got resentful of her, and I was getting tired of blaming myself, I realised that indeed there are many mistakes and lessons for me.  At the same time, this particular person was a wrong fit for my company.  Amazingly, just as I was getting it together to fire her, she finally resigned.  We both figured we had had enough of this particular lesson.

So what were the lessons for me in this experience?

-          It is ok to see the potential with someone when you hire them, but back this up with hard facts – do reference checks and ask around about a person.  As a small business you do not have the excess resources to waste on a bad hire.

-          Be clear what it is that your company will need – work ethic – ability to take initiative (especially in a smaller company) and ensure that this person fits into that. Instinct is not enough.  Back this up with sound assessment criteria. 

-          Do not offer people big titles if you are not clear that they can live up to it.  In this case, the person was insecure, and needed reassurance on an ongoing basis.  She loved the new title, but in the end it overwhelmed her and made her feel completely out of her depth.  That was unfair to her and to others who were appointed at the same level and delivering the results required.

-          Check if you can assess patterns in a person’s life.  The fact that Rowena did not qualify as a coach – even though she had finished the actual coach training at least a year before me is indicative of somebody who is not able to complete things. 

-          Provide regular feedback and also document this feedback.  Get good labour advice in instances of incompetence and non-performance.

-          Make visible your assumptions of what the other person is and will be in your company.

-          If a person is unhappy about something in their work set-up and they are acting like the victim – chances are they will be the victim in your environment – watch out for that.

-          Understand the impact a person who does not perform has on the morale and energy of the company.  This person who is unhappy is most likely talking to other employees who are in junior positions and spreading around poison in an attempt to find  ‘company’ in their misery.

In fact, it is strongly advised my many seasoned entrepreneurs that at the start-up phase, the entrepreneur should pay considerable attention to attract team members who are creative, able to spot opportunities, rejuvenators, innovators, fluid, resourceful and willing to take ownership of the entrepreneurial venture.  Not paying attention to how the team is grown is a costly exercise, especially at a time when the entrepreneur needs all the resources to plug back into the business.  Southon and West (2002) breaks it up into the two stages of venture growth. During the seedling stage, the entrepreneur would need four cornerstones who have the mix of technical and commercial skill and experience to ensure that delivery and sales.  The cornerstones are hardworking and passionate about the venture, in fact they are doers.  In the second phase, as the venture has grown, a dreamteam will grow on the expertise of the cornerstones with a lower level of skills, but would be as passionate and imaginative and ultimately team players.  What remains for the entrepreneur is to lead the vision and strengthen the team and ultimately have the bigger picture in mind such that new opportunities are constantly sourced. 

 ** not her real name.

 References:

 Southon M and West C (2002).  The Beermat Entrepreneur. Pearson Prentice Hall: Business.

Jeffrey A Timmons, Spinelli S (2007) New Venture Creation: Entrepreneurship for the 21^st Century.  7^th Edition.  McGraw Hill International Edition.