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BUILDING THE FOUNDING TEAM

7

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The Entrepreneur’s Network

Figure 7.1

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Creating the Founding Team There are benchmarks for an

effective team.

Special circumstances:• Special Issues for High-Tech Teams• Unique Issues Surrounding Virtual

Teams• Founding Teams for International

Ventures• Rules for Friends and Families

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Board Members… and the Business Life Stage

Figure 7.2

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Seeking Personal Advisors Building a board of directors

Advisory Board

The Mentor Board

Mistakes to Avoid• All team members should have the required

experience and qualifications, and the same goals for the business.

• Avoid using only family and friends.• Only give stock incentives after an

individual has proven him or herself.

©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Outsourcing… Independent Contractors

Independent contractors (ICs) own their own businesses and are hired by the entrepreneur to do a specific job.

• Including: consultants, manufacturers, distributors, employee leasing firms, and professional advisers.

• Hidden costs

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Types of Independent Contractors Consultants

Professional employer organizations (PEOs)

Manufacturing support

Sales support

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New Venture Action Plan Identify the members of the founding team or

at least the expertise needed to start the venture.

Determine what expertise is missing from the management team and how you will supply it.

Begin asking questions about potential professional advisors, such as an attorney or accountant.

Determine whether you will need a board of directors, an advisor board, or a mentor board.

Identify at least one type of independent contractor that the new venture could use.

End of Chapter 7