Clarence Wooten - 12 Hard-Won Lessons of Entrepreneurship

Feel free to ask additional questions about any slide.  I'd be happy to further explain my thoughts and feelings. I usually deliver this presentation in 45 minutes, vs. 5 minutes

Clarence, do you recommend prospective entrepeneurs try and find a partner?  I just read an excellent (but terribly-titled) book called "The Little Black Book of Entrepreneurship") in which the author examines the causes of entrepreneurial failures.  He cites partner problems as a frequent cause of mishaps and generally recommends against having them if you can help it.  Was wondering what your thoughts were.

-Mike

Mike,

Sorry for the late response. There is no short answer to your question. So I'll give you an abbreviated version of what I would say to you if we were having this talk in person.

Basically, my view is that most people don't have the level of passion or work ethic that it takes to successfully build a startup (when getting a pay check may not be on the immediate horizon). As a result, unless you know the person that you're planning to go into business with, really well... then chances are, that person isn't going to have the level of passion and commitment that you have.  However, this can be okay... but only if you aren't equal partners.

On the flip side, having a founding partner can be incredible when both partners compliment each other well... and share equal work ethic and passion.  I've had the good and not-so-good fortune of having been in both situations with partners. 

Ultimately, I'd recommend that you go with your gut, but put provisions in place (i.e., shot-gun clause and reverse vesting) so that you protect your interest. If you'd like to learn more about both... it will cost you

I hope this advice helps.

Clarence

Thanks Clarence, that makes total sense.  I guess the takeaway message is to be extremely clear and sober-eyed about any partnership, and don't feel like you have to have a partner to succeed, but it could be great to have one if you did.

-Mike

Adam Boalt and I had a long talk about this same subject, and his thoughts strongly echo this thread (see item #5):

http://www.boalt.com/blog/2008/11/a-few-singles-and-doubles-can-be-just-as-a-great-as-a-grand-slam/

My first partner was my best friend from high school. He was and is smarter than I am. He was valedictorian of his class. He was 10th in his class at a prestigious university - and a standout. He got me my first (and only) job - because he was such a good software developer, the company would do whatever he suggested at the time; he was 25 at the time.

He was a terrible partner. He did not have what it takes to run a company for a variety of reasons. Even though I knew him really well - I could not see this. He is still a fantastic person - just is not an entrepreneur.

Still, I started my other companies with a partner. My current one is fabulous. I think he simply can do the things I cannot, which makes our current ventures work. We share a vision - but have very different skills.
Don't know if this helps at all

Prescott, yeah that helps.  I would definitely go into business with a person like your partner!

-Mike