Wednesday, October 26, 2011

Founders' Decisions

I recently read a post from a famous blogger in the start-ups world. He was talking the critical, game changing decisions founders make. He said there were only three such critical decisions that get them right in the beginning and you're on the right track to success, get even just one of them wrong and you'll most likely fail. The decisions according to that post are:
1. The idea
2. The co-founders
3. The investors
That's it.
At first I thought - damn this is so right.
Then I thought some more and realized that I don't think it's so right at all, here is why-
1. The idea - if you have the right co-founders and investors the idea isn't that critical. Idea is flexible. We all see start-ups change their ideas completely and then succeed. Take Groupon for example.
2. The co-founders - this one is very true of course and yet, I read somewhere that the optimal number of co-founders for a start-up is 4 and I think it makes sense because it mitigates the risk of choosing wrong one of the co-founders.
3. The investors - it's true I guess that the right investors can help a lot and bad investors can be a burden. The problem is, in the reality I know for most start-ups it's not really the founders' decision, they don't chose the investors but the investors chose them. Those start-ups that got to the point that they're so hot they can chose their investors do not need such blog advises...
So my conclusion - not to take too seriously/literally these advises, the best thing about these "advisory posts" when I have time to read them is they make me think about my own opinion more clearly.