The Idea is Nothing Compared to the Team (Part II)

Last week, I claimed that the idea is trivial in comparison to the team, and I mainly talked about the 3 characteristics of a great team (Shared Values, Understands the Customer’s pain, Embraces their Role).

Now, here’s the reasons why the Team ultimately trumps the Idea:

• Team is the driving force. Let’s assume you have the perfect idea.  It’ll take years to build a company and bring the idea to fruition.  It takes an average of 8 years to reach the 50 million in revenue milestone.  However, hitting this level of revenue is a function of success and great market opportunity.  Therefore, I’d say building a successful company in any market takes an average of 8 years.
• The Idea will change and evolve. The land of startups is a volatile and bewildering place.  Markets change. Completely rational and mutually beneficial business models may not work.  Resources are slim.  And like any animal in the wild, the company must adapt.  The ability to adapt comes from the insight and resilience of the Team.
• The Team embodies the idea. In my experience, a startup is like a snowball.  The lead entrepreneur will probably need some idea to get the ball rolling.  His energy and commitment will attract others interested in the space.  If the team is chosen wisely, the team will consist of the right mixture of people.  Culture needs to be developed.  But the right passions and experience need to be there already.  If things go well, that snowball will slowly gain momentum and turn into a boulder careening down the mountainside–headed for something catastrophic or spectacular.  And along the way, the people will influence the course.  A company needs a shared vision, but getting there will require a stream of ideas.

• You’ll screw something up. Things go wrong. If the team jumps ship as soon as you hit your first storm, so much for that brilliant idea.
• The Idea to Great Teams Ratio. A lot of ideas are floating around out there.   But, there are relatively few functional teams that can execute anything, much less swing for the fences.

-Kevin
11.19.2009