Red Rocket's George Deeb recently presented a "How to Build Your Team & Advisors" session for the new class of startups at Founder Institute in Chicago. This video tackles the following topics: How do you find the right team to launch your company? How do you identify the right set of advisors? How do you manage your advisors? What are responsibilities and compensation for advisors? How do you identify the right roles to help you launch a product or offering? Do you expect the roles to change over time? How can recruit people to fill roles when you have limited resources? What metrics do you track when recruiting? Do you need a cofounder? What are some common pitfalls with cofounder? Is a team necessary to launch a company? Here is the matching video and voice over to go with the presentation. Sorry for the poor quality: https://vimeo.com/149684122 For more information about George Deeb or Red Rocket Ventures, please visit our website at: http://RedRocketVC.com. For future posts, please follow us on Twitter at: @georgedeeb (http://twitter.com/georgedeeb) and @RedRocketVC (http://twitter.com/RedRocketVC).

1. Building Your Team and Advisors
By, George Deeb
December 8, 2015
@RedRocketVC www.RedRocketVC.com 312-600-7560

2. Managing Partner (2010 to Date)
Chairman & CEO (2008-2010)
Founder & CEO (1999-2008)
Investment Banker (1991-1999)
BBA-Finance (1987-1991)
About George Deeb

3. Building Your Team
The Single Most Important Thing You Will Do
- The primary reason 9 in 10 startups fail: the wrong team
- Bias A+ team with a good idea over B+ team with great idea
- Leverage the proven expertise of others

4. Do You Need a Co-Founder?
Assess Yourself
- Do You Have the Skills Needed to Succeed Alone
- Can Your Personality Embrace Another Equal Voice
Assess Business Needs
- Co-Founders Can Fill Needed Talent Voids
- Co-Founders Can Be Sources of Capital
Common Pitfalls
- Set Clear Role Sort Right From the Start
- Just Like With Any Marriage, It Can End in Ugly Divorces
- Set Long Term Vesting of Equity, With Protections at Exit

5. Is a Team Needed to Launch?
My Immediate Answer . . .
Investors Back Teams, Not Individuals
- Can’t have all their eggs in one basket if you are hit by bus
A One-Man Show Can Only Take Business So Far
- Just not enough hours in the day
- One person doesn’t possess all the needed skills

6. Roles of a Startup Team?
Leader of the Business and Vision (1st)
Head of Product or Technology Development (2nd)
Head of Customer Acquisition or Sales (3rd)
Head of Customer Fulfillment or Operations (4th)
Head of Finance and Administration (5th)

7. Do Roles Change Over Time?
My Immediate Answer . . .
CEO’s Focus Shifts from Internal to External With Scale
- Once product and process scalable, go find the growth
Others Evolve From DIY Contributors to Team Managers
- Not all contributors are good managers, and vice versa

8. How to Find Right Team?
Networking
- Leverage the people you know
- Always best to hire a known success
Job Boards
- Big sites: LinkedIn, Monster, Career Builder, Craigs List
- Targeted to Chicago: Built In Chicago, Hired
- Targeted to role: Dice (for tech), CIMA (for marketers)
Startup Incubators and Accelerators
- 1871, Tech Nexus, Catapult
Startup Events and Websites
- Techweek, Startup Weekend, Technori Pitch
- Founder2Be, TechCofounder, Co-Founder Lab

9. Recruiting With Limited Budgets?
How to Address Recruiting Costs
- To start, do it yourself—but expect a drag on your time
- Much less expensive than using recruitment firms (use later)
How to Address Compensation
- Incent key team members with equity, to help reduce salary
- Look for candidates that can work for free or bring capital
How to Address Benefits
- Traditional employee benefits not needed in very early stage
- But most likely needed after 50 employees

10. Recruiting Metrics to Track?
Hiring Speed
- It should take 3-4 months to fill a typical role
- If longer, something may no be right with process or offer
Employee Satisfaction
- Establishing the right startup culture is key
- Constantly talk to staff about what they like/dislike in biz
Employee Retention
- A revolving door with talent means something not working
- Or, you didn’t hire the right person in the first place

11. How to Identify Right Advisors?
Who Has Been There and Done That Before
- People with past startup success in your space
Who Has Complementary Skillsets
- People who fill holes in the resumes of current team
What Best Serves the Business Strategy
- People who have sold into desired industries, clients, titles
Where to Find Them
- Just like with hiring, leverage your personal network
- Research on LinkedIn—search by industry, company, role
- Research on Google—past funding or exits in your space

12. How to Manage Advisors?
Set Clear Expectations
- How frequently will you meet—by phone or in person
- How frequently will you call them in the interim
Respect their Time
- Good advisors are typically very busy—be efficient
- Limit group meetups quarterly, calls to one hour monthly
Set Clear Roles
- Will they be doing any formal work (leverage them)
Incentivize Them
- Offer small equity stake (1%) in biz or cash ($5K/quarter)

13. Further Reading
http://www.RedRocketVC.com
Lesson #2: Building the Right Team for Your Startup
Lesson #9: Spreading Equity to Key Employees
Lesson #12: Structuring Your Board of Advisors
Lesson #14: Role of a Startup CEO
Lesson #34: Recruiting Best Employees for Your Startup
Lesson #45: Finding a Mentor or Business Coach
Lesson #83: Startup Roles & Responsibilities
Lesson #156: How to Find a Co-Founder for Your Startup
Lesson #176: Filtering Conflicting Advice from Multiple Mentors
Lesson #196: CEO’s Role Must Change As Company Scales
@georgedeeb