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High-performing startups often have strong founding teams that combine business-oriented generalists and technically savvy specialists. The mythical founder who can do it all is rare for good reason. The skills that make someone a world-class developer or scientist are not the same skills needed to raise capital and coordinate business operations.
The best partnerships pave the way for innovation and success. But partnerships can go wrong when business promises go beyond technical reality. Consider Theranos, the fraudulent blood testing startup whose claims to the public and investors were never consistent with the product's actual performance.
As founding director of the Kerry Murphy Healey Center for Health Innovation and Entrepreneurship at Babson College, I often help healthcare professionals find business partners to bring new ideas to market. Research I conducted with Babson colleagues Candida Brush and Alia Crocker suggests that interdisciplinary teams are most likely to have the knowledge needed to run a successful business.
Here are three strategies for building and scaling successful partnerships and businesses.
Related: Want to grow your business? Here's why you need strategic partnerships to be successful.
Find the right person by setting clear expectations
Innovators looking to bring a product to market and businesspeople looking to launch their next startup don't always have the same goals. When you meet a potential co-founder, be open about your business and missional motivations and ask them to do the same. Check if you are on the same timeline. How quickly do each of you want to progress? If one person is eager to enter the market and the other person is eager to slow down, you will encounter serious problems.
Check that you have the same ethical approach of not cutting corners to reach the next milestone and be sure to discuss roles. In healthcare startups, for example, some scientists prefer to be silent partners rather than be a prominent part of the company. So ask your potential co-founder: How involved do you want to be in the company?
Relationships require compatibility even as they thrive because each person brings different strengths to the relationship. Don't feel pressured to settle down right away. If your potential partner doesn't share your expectations, keep looking. Getting ahead of the curve early on will help you and your team avoid disappointment and financial loss later.
You have options. Co-founder matching platforms such as Y-Combinator, Co-Founders Lab and others offer networking opportunities. There are also special matching programs for specific industries. Founded by Vinit Nijhawan, serial entrepreneur and CEO of MassVentures, MassVX connects doctors and other scientific experts with entrepreneurs who have experience raising capital and running a business.
Related: What to Look for When Choosing Partners and What to Look for to Drive Your Brand's Success
Create a common language
Even before considering partners, business-oriented entrepreneurs should familiarize themselves with the area they are researching. You don't need to know as much about the innovation itself as the technical expert; That's why you join forces. But you should know the area well enough to discuss its potential. You can't position your company for success if you don't understand what your product does and why it's better than existing solutions.
For example, if you enter the healthcare industry, you might attend relevant medical conferences and follow scientific discoveries. If you're getting into the gaming industry, you might find yourself attending gaming events, reading industry reports, and listening to leading podcasts. In 2024, every technical field offers a wide range of accessible ways to learn more.
At the same time, you want to find a technical partner who is open to understanding the business side. Before you join forces, you should provide a basic explanation of your expected revenue model, customer base, and market size. Are you a B2B company recruiting some big clients? Or a B2C organization that relies on consent from individual consumers?
Once you find an expert who shares your language, keep the conversation going throughout the partnership. Make time for regular updates on product progress. Genuine curiosity from entrepreneurs makes technical professionals feel understood and helps you do your job better. You won't be tempted to talk about the details when pitching to investors – a tactic that could eventually catch up with you.
Don't let these meetings become one-sided. You should keep your partner updated on business progress. Teams are only successful when partners understand and build on each other's expertise to pursue a common mission.
Related: Most Business Partnerships Fail – 5 Hacks to Make Sure Your Partnership Stays Intact
Develop shared measures of success
You and your co-founder should track progress together. This initial agreement on expectations will be your north star as you set product and financial milestones.
As a business owner, you are responsible for ensuring that fundraising does not exceed results. If you move to Series B and C and don't keep an eye on product development, this oversight will eventually come to a head. For example, a 2022 study conducted by researchers at investment firm Rock Health and Johns Hopkins University found that 44% of digital health startups had no clinical trials or regulatory filings to rely on.
They should also help technical experts understand financial measures of success such as sales and customer acquisition rates. Sometimes an engineer or scientist feels that the entrepreneur is pushing the schedule too quickly. Listen to these concerns. If you disagree, explain how your approach contributes to your organization's goals.
Profit and purpose can go together when entrepreneurs and technical experts are on the same page. That is not always easy. Making these relationships work is an art. By setting expectations upfront, communicating clearly, and working toward shared benchmarks for success, your partnership will be rewarding for both you and your company.
Create your very own Auto Publish News/Blog Site and Earn Passive Income in Just 4 Easy Steps
