I’ve been meditating on these two ideas, and they resonate for me. See what you think of them.
Imagine taking the roof off of your building and shaking out all of the people inside.
Now, rearrange the people into an optimal value-producing configuration.
I would bet that you could find a handful of combinations that unlock $1 billion in value; I’d bet you could find a few that unlock $10+ million in value; and I’d bet that 50% of the available combinations would unlock more value than the existing configuration.
What are the barriers that keep us from unlocking maximum value in our workforce? Walls, lack of connections, non-optimal application of resources, and addiction to personal cash-flow spring to mind.
Why do we perpetuate these non-optimal configurations of resources? What are you doing to unlock the potential in your building and in your broader community?
Keep the Same Team?
The more exposure I have to the world of startup investing (and to startups themselves) the more convinced I am that team is everything. At first I was more apt to evaluate a startup by its idea and its market metrics. But I’ve come to believe that all bets are bets on people.
In support of this strategy, I’ve started to look for heuristics that indicate that a particular team is worth betting on. And one question I am asking founders is this: If you do secure funding, would you keep the same people or would you hire new team members?
The answer can be revealing. If they indicate that they will keep the same team members, it’s worth asking why. And understanding the why behind the why. If there are good reasons why the team is well-cast, then this is likely a bankable team. Good reasons include expertise and real dedication. Bad reasons may include “knew them at my last job,” “he built it under contract,” or “found him at a meetup.”
There’s no hard and fast rule here, but the key thing to remember is that money changes everything. But if it changes too much of your team make-up, it’s probably not a bankable configuration to begin with.
How are you rearranging the world around you to produce optimal, bankable teams? To me, this is the essence of entrepreneurship. What do you think?