When searching for potential partners in a pool of many skilled workers, I look for the most valuable skills, both” hard and soft”. These include: reliability, passion, responsibility, honesty, creativity, a hard work ethic, good communicator, and having good people skills. As there will be multiple personalities and potentially conflicting ideas, being able to communicate effectively and respectfully is essential. Having a partner who you know will not walk away from the venture if he/she does not get their way is significant as well as having someone who is honest as to tell yourself or others when something is not right or could be done better. This characteristic is major in regards to a new business because it is the critiques of a venture that often times causes the most improvement.
I do not have partners already, but there are passionate people in the sustainability department of Muhlenberg, ENACT, and online. Connecting with the Lehigh Polymers, people who know the plastic industry may be another source that could join my team or help me find the right people. Asking nonprofits focused on plastic recycling is also a good start for partners as these people will have experience working with communities and governments. Precious Plastics will be providing the blue prints and sources of machinery. However the placement of these recycling machines and the education aspect surrounding the venture requires the potential partnership with an environmental education group such as the wildlands Conservancy. This organization or a similar one would already have grant money they receive and could offer better insight on how to acquire this type of funding. Another benefit of partnering with this organization is the employees that currently work or volunteer there. The educational and recreational goals of the Wildlands Conservancy align with the education goals of POWUR. Therefore, training the employees on expanding their educational workshops to include recycling plastic from activities such as local river cleanups could be beneficial for both POWUR and the Conservancy.
In a cofounding team I need an academic advisor or someone who has experience in writing grant proposals. I also need a financial advisor to calculate the costs of the recycling machines, supplies, wages, internal costs, product prices as numbers are not a stronghold of mine. Recognizing one’s own weakness can ensure another team member acquires what you may lack as a stronghold.
Further, it is important I have a team of passionate educators who want to be a part of POWUR; activities employees would be a part of would include planning the education tools used to teach community members, school children, and concerned citizens about plastic pollution, recycling logistics, and showcase the production process. Transforming the plastics into products could be a real selling point and a sales person is also key to the founding team. An engineer would be useful to have on board in case something goes wrong with a recycling machine or if we would like to cut costs of the recycling machines by making them using materials we source ourselves. Precious Plastics provides blueprints on how to make the machines and the Lehigh engineering program may have students willing to take on building these recycling machines (shredder, extrusion and injection machines). It is integral that every employee know how to safely use one of the machines and thus an expert would have to showcase it to all founding members.
Skill sets that would complement my own include a common passion, enthusiasm, and positive attitude towards sustainability and plastic pollution. In order to work with someone, they too need to feel hopeful about the initiatives POWUR is going after. Finding leadership qualities in potential partner would complement my own leadership qualities. However, potential partners need to collaborate with others while also be able to share their own ideas. New thoughts and ideas are very important because even if they do not turn into something being used, it can be the basis to stir other vital ideas, allowing for more creative innovative action to take place.
Investors would look to see that the partners and I have discussed and agree upon a common vision for the venture. Partners should have a fluid and cohesive plan that is well understood by all founders including information on the market, value proposition, logistics/resources, and financial projections.
Dividing the company’s ownership amongst partners is a difficult task. I think it would happen over multiple discussions and negotiations with the advising of outside resources. Partners who pour in more money and time into the company should receive a higher share of the company. Valuable skillsets should also receive a higher ownership.
The podcast reaffirmed that equity and money really speaks volumes. How much value of the company the partners will be allocated is a hard task. The percentage of ownership is presented as the” make it or break it” of a potential partnership. It is not highlighted when one thinks of a founding team, but the road leading partners to come together include conversations and contractual work that was agreed upon prior. It is clear when a partner wants in, they also want equity. It is interesting that Alex proposed he speak to his lawyer when he asked Matt to be a partner. I would have brought in a legal team as well.
Alex’s wife makes a comment that resonated with me. Splitting the equity of a company is like “giving away pieces of this thing you are building to people who may or may not deserve it. Think about it like you are giving away little pieces of your fingers.” Alex makes it seem like equity doesn’t mean so much to him and I think it would be a lot harder for most people than it is for Alex to give away the high percentage of equity he gives away to Matt. He said he doesn’t care, but for someone who has built a company from the bottom up to give away to a person who comes in mid-way, this idea is daunting and doesn’t sit well. It’s why so many people walk away from potential partners because the idea of giving so much of the company away to a person who hasn’t been there from the start is unsettling. The podcast helped me understand the true dilemmas and worries that go on in a conversation between two possible partners. Alex’s conversation showed the awkward and hard truth behind these conservations. I think the other partner in this conversation represents an emotional aspect I had not considered before as Matt wants to feel like he is respected and valued. Often times there is not a happy medium met at first offer and I would expect both parties to feel like they are losing out.
I appreciate that the conclusion of the podcast said there is no right answer to splitting equity. The internet and trusted advisors can all give numbers and splitting techniques, but what it comes down to is what the partners feel is fair. This is an important lesson. I need to know it has to come not only from logic and advisees, but from my own gut feeling on what is right.
Before the podcast I believed a partner was essential in a startup especially if it was to be scaled. Matt Leiber and Alex are much more powerful together than Alex alone. This was reaffirmed especially when Matts skills were added into the picture. For myself, a founder alone trying to make it is a daunting future, but one with the support and help of partners seems much brighter.
The podcasts emphasized the derisk of a startup proposal using numbers and math. I definitely need a partner who can create a credible and sustainable financial pathway to success. The mathematical models are proven to be integral. risk looks different when partners share the risk instead of it falling on solely one person.
