Question

How the elements of a new venture team effects the efficiency of your new business and identify the common errors made in putting together a new venture team. Elaborate and justify our answer in 500 words.

Answer 1

A new venture team is a group of people who moves on with the new venture with an idea for a fully functioning firm. Company founders, key employees ,the board of Advisors, lenders and investors and other professionals are the primary elements of a new venture team.

The elements of new venture play an important role in shaping the firm's business model. The key to success is not the idea but the ability of the initial founder or founders to co-ordinate the team that can execute the idea better than anyone else. The way the founder makes new venture team gives an important cue to the potential investors, partners and employees. The way to impress the various stakeholders is to put together the key elements as strong team as possible. Investors and other know that experienced employees and access in good quality advice makes on to a greatly new venture success.

It is important to carefully think through each element of the new venture team. Misinformation regarding whether the teams are compatible with each other, whether it is properly balanced in terms of expertise and how the permanent members of the team will work together can be very harmful. Therefore, it is very essential to determine that how the elements of new venture team will affect the efficiency of new business .

How elements of new venture team affects the efficiency of new business??

Elements of New venture team are:

1) The founder or Founders

Founders characteristics and their decisions very significantly affect the way and entrepreneurial venture is received and the manner in which new venture take shape. The size of the founding team and the qualities of the founder and the founders are the most important issues in this regard

* Size of the founding team: The very first decisions that founders face is whether to start a firm on their own or to build an initial founding team. Teams bring talent, resources ,ideas and professional contacts to a new venture . The psychological support of the co-founders can be an important element in new venture success. Team members differ from each other in terms of work habits ,tolerances for risks, level of passion and similar key issues. If the team is not able to reach on a consensus on these issues,the results would be very fatal. Several issues affect the value of the team . First, teams have to work together before as opposed to teams who have worked for the first time ,always have an edge. Secondly, members of the team are different rather than same so they must be having different points of view regarding Technology ,hiring decision, competitive tactics and other important activities.

* Qualities of the Founders: The knowledge, skills and experiences of the Founderare most valuable resources of the firm. Founders and their founding teams most important attribute is the presence of mature network of social and professional contacts . They must work on their social and personal networks to raise money and gain access to critical resources on her behalf of the firms. Here, networking plays an important role . For some founders, networking is easy and important part of the daily routine and for others it is a learnt skill.

2) The Management team and Key employees: Once the decisionto launch a New venture has been made, building a management team and hiring key employees begins . Startup main vary in terms that how quickly the personnel are added. In few instances, the founders work alone while the business plan is being written and the venture begins taking shape and in other instances employers are hired immediately.

The technique available to the entrepreneurs to prioritise the hiring needs is to maintain a skill profile .It depicts the most important skills that are needed and their skill gap exists. To save money ,increase physical flexibility and remove the difficulties in finding the capable employees a new venture may use different sources of labour to get their work done. Firstly, an employee is someone who works for a business at business location on Virtually utilising business tools and equipments in accordance with business policies and procedures. Secondly ,and Intern Works from business as a Trainee to obtain practical experience. Thirdly , a freelancer who comes in business for their own selves works on their own time with own tool and equipment and perform services for a number of different clients. Fourth ,a virtual assistant who may be known as freelancer and provides administrative technical or creative assistance to clients remotely from home office.

3) The Roles of the board of directors: Board of directors are the panel of individuals who are added by Corporation shareholders to oversee the management of the firm. THey have three formal responsibilities i.e.,appointing the firm officers, declaring dividend and overseeing the affairs of the corporation. If handled properly, a company board of directors can play an important role in the new venture Team by providing expert guidance and lending legitimacy for entrepreneurial venture. Well-known and respected Board members bring instant credibility to the firm.

4) Board of Advisors: These are the panel of experts who are asked to perform manager to provide counseling and advice on ongoing basis. The board of Advisors can make high level introductions to early customers, suppliers and business partners. They are widely recommended on startup circles. As a result , one-way a startup can make itself stand out is to have one or moved to the Advisors.

5) Lenders and investors: Lenders and investors have a vested interest in the companies they finance often causing the individuals to become very involved in helping the firms the fund. They monitor the new ventures very closely specially during the initial years of loan and investment. The amount of time and energy a lender or investor gives to a new form depends upon the amount of money involved and how much does new firm needs.

6) Consultants: The individual who gives professional advice. The role of business consultant is as important as ever he conducts an in-depth analysis on behalf of firm such as preparing feasibility study or industry analysis. Consultants fall into two categories: they may be paid consultants or who are made available for free at a reduced rate through a non-profit government agency.

Common errors made in putting together a new venture team

The top mistakes which the management must watch out when making efforts for putting together a new venture team. They are:

* Not treating each team member as an individual is one of the top mistakes that the management makes . It is very essential to focus on the members personalities, skills and goals. The management attention will pay off when their align each and every member passions and skills to develop a highly engaged team.

* We should not treat employees like if they want only is the financial motivation .if you are doing it ,you are doing your team members a disservice. There are many other factors that contribute to the employee motivation like better health benefits or ability to work in the flexible hours, proper working conditions etc.

* Not sharing the new venture long term vision with your team members. The biggest thing an individual can do as a leader is to ensure the employees to know that how they work contributes to the company success and mission. It should be communicated to the Employees all the time . By constantly talking about the company rules, your team members will see how their contribution help to move corporate objectives forward. In every meeting, communicate with the employees about current work and future plans. This is really an important mistake a lot of entrepreneurs make.

* If you are an  entrepreneur, giving constructive criticism or delivering discipline might seem even more difficult. But feedback is essential in growing your team. Even the star employees need regular constructive feedback about their performance. The key is to be specific.

* Not delegating enough is one of the errors made by entrepreneurs. Many entrepreneurs feel so protective over their companies that they think they are the only ones who can do a certain task correctly. By not delegating, you are actually limiting your company's growth potential . If you are doing everything on yourself ,you will never have time to think too far into the future.

* Entrepreneurs not being available at all times. There is a need to delegate the responsibility but the entrepreneur can also can't be unreachable . There is a need to be available for the entrepreneur for the urgent situations. Regular communication with the management make employees feel valued and supported they know that they will get the opportunity to be heard.

CONCLUSION:

Putting together a new team is one of the most critical activities that a founder or founders of a firm undertake. Many entrepreneur suffer by not thinking broadly enough and carefully Enough about this process. Ultimately, people must make any new venture work. New ventures benefit by surrounding themselves with high quality employees and Advisors to tackle the challenges involved with the launching and growing of entrepreneurial firm.