Events
2010 Annual Diversity Discussion
What Must Change to Make Diversity Work More Effectively in Companies?
February 18, 2010 - 7:30 AM to 9:30 AM
Sponsored By:
Georgia Power
Turner
Related Content
The Team
Regardless of what type of business you run, having the right people is key to your success.
by Greg Henley
October 6, 2009
Starting a business requires the right combination of resources. I've written about some of
the financial resources many emerging businesses use - loans and angel investors - but human
resources should be a higher priority. In fact, financial backers often focus more on the team than
the business concept. The right people are keys to success whether the business is a high-growth
business or a lifestyle business.
In building a business, the lead entrepreneur must first determine what he or she is good at,
such as marketing and then determine what other capabilities and resources, such as technology, are
needed to run the business. He or she must find others with these complementary capabilities and
resources. The question I get most often is, "How do I find the right people?" Here are five
suggestions.
Network - There is no substitute for getting out and meeting people. Major
metropolitan areas like Atlanta have more entrepreneurship related events than I can count. From
the Chambers of Commerce to university-sponsored events to private organizations, you can attend at
least one event per week.
One of my business partners is someone I went to undergraduate school with more than 20 years
ago and hadn't seen since then. I re-united with him because I happened to be at an event (that I
almost didn't go to) and happened to meet someone there on my way out who happened to run a
networking call-in show. My school friend was on the call and after meeting with him face-to-face,
we found we had common business interests and complementary skills.
School - As a professor, I tell every student who will listen that one of the best
sources of talent are those in your class and getting to know fellow students should be one of the
reasons each one is there. Other students are potential team members for you as an
entrepreneur, or each student may have someone in his or her network who is a potential team
member.
My example above about how I re-united with a college friend is an example, but to underline
the point, his business partner is someone who lived my dormitory and who I knew even better. If
you're not a student, take a class. You don't need to be in a degree-seeking program to find others
with common business interests, but complementary skills.
Professionals - An effective source of potential partners and other business
contacts are professionals such as accountants, attorneys and consultants. Their value may be more
in the people they know than in the services they provide. Professionals must come into contact
with many clients to survive. The good ones know that providing referrals helps attract and retain
clients. Entrepreneurs are often careful how they spend money. Consider spending a little
more, if necessary, for a given professional if his or her network is more extensive than a less
expensive professional.
Prior Work - Another fertile source of talent is your prior (or current)
job. It is extremely common to see startups whose founding team previously worked
together. This is because of the familiarity each member has with the others based on talent,
personality and cohesion. In one of my experiences, I was the one recruited and the process was
smooth and seamless with no interview required because we knew each other and my skills fit what
the company needed.
Outsource - You don't always need to hire someone or partner with someone who has
complementary skills. Often, the skills you need access to can be outsourced.
Outsourcing does not commit you to a long-term relationship. Typical functions that are outsourced
are legal and accounting. You can also hire a marketing professional or student just to do the
marketing plan.
However, don't be penny-wise and pound-foolish. For example, a critical decision is when you
need to hire a financial professional. If you only need periodic accounting, outsource the function
by finding an independent accountant. As you grow and get more sophisticated, you may need to hire
someone to handle the entire financial function, which consists of more than just accounting. I
argue that a good financial person will more than pay for herself and can be a key team member.
Plan to dedicate time to search for the right talent. People will be critical to the success
of your business. Don't be surprised to find talented people in unexpected places.
Greg Henley is the Director of the Herman J. Russell, Sr. Center for Entrepreneurship at
Georgia State University. His background includes entrepreneurial experience both as a practitioner
and as an academic. Dr. Henley received his doctorate is from Columbia Business School with a
concentration in Strategic Management and Entrepreneurship.




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