The success of a company often stands and falls with the personalities and competencies of the founding team. As an entrepreneur, you must execute and drive your venture forward. The founding team may consist of a single founder or multiple team members. In this chapter, you document that you have what it takes to successfully build the company. In short, it is all about your management capabilities.

Succeeding as a Team

Building a company requires a wide variety of skills and talents that rarely exist in a single individual. Depending on the situation, qualities such as prudence or decisiveness, attention to detail or strategic foresight, teamwork or assertiveness are needed. Working within a founding team offers the advantage that tasks and responsibilities can be distributed across multiple shoulders. Often, the effective interplay of diverse personalities produces the optimal solution. If you succeed in combining the competencies of different individuals in the best possible way and forming a complementary team, you gain a major competitive edge. You should be acutely aware of the strengths and weaknesses within your team and develop strategies to ensure cohesive action. In doing so, it is crucial that all team members share the same vision.

Profile of the Founding Members and Their Relevant Competencies

In this section, introduce yourself alongside the other founding members (names, ages, etc.) and describe their competencies. Avoid simply listing past roles and activities. Instead, document which of your competencies are essential to the company’s success. Explain how your skills will benefit the future business and specify the roles and responsibilities designated for you and the founding team.

Make sure to include not only technical/industry-specific expertise, but also commercial and business acumen, which are equally indispensable to the success of the enterprise. In this context, relevant practical experience - such as in sales, business development, leadership roles, or in-depth industry know-how - is of paramount importance. Furthermore, do not overlook the significance of personal and soft skills, such as goal orientation, resilience, communication skills, or the ability to work in a team. The larger and more complex the venture, the higher the demands placed on you as an entrepreneur.

If you are founding your company during or immediately after your university studies, you typically lack the professional track record that investors like to see. In such cases, it is important to highlight alternative credentials. These include leading student initiatives or seminars, serving on committees or in associations, as well as completed internships and stays abroad. It is also particularly compelling if a team has conducted research together for years and the findings are now being translated into a commercial product within the framework of the company (spin-off).

Closing the Gaps

Mentally create competency profiles for the key areas of the business and identify the skills and experience required in each. Compare these requirements with the abilities that you and your founding team bring to the table. Where gaps are identified, you should explain how and at what point in time you intend to close them. Pay particular attention to gaps in commercial and business expertise.

It is generally not necessary to fill all key positions within the company immediately - doing so would more likely result in uncontrolled cost escalation. A more sensible approach is to pursue a carefully considered hiring strategy that is aligned with the actual needs of the business and that may, where appropriate, temporarily rely on part-time staff and external service providers.

Key Persons

It is advisable to also address key individuals who - beyond the founding members - play a significant role in the company (e.g., knowledge holders, individuals with important customer relationships). In particular, explain the extent to which dependencies on these individuals exist and how they can be retained within the company. Bear in mind that a strong reliance on specific individuals can represent a risk to your business. Where applicable, outline a contingency plan in the event that key partners exit the venture midway.

Income of the Founding Members

This chapter should also include information on the planned income of the founding members (founder's salary). As a basis, you may refer to previous salaries or published industry averages, for example. On one hand, you should allow yourself an income that enables you to cover your living expenses adequately. On the other hand, you should avoid placing unnecessary strain on the company's financial position during the start-up phase through excessive salary payments.

Guiding Questions

Founding Team

• Are the founding team and their competencies clearly presented?
• What distinguishes the individual members of the founding team: education, practical experience, prior knowledge, achievements, professional qualifications, entrepreneurial experience?
• Which commercial, technical, and personal competencies and experiences are relevant to the success of the company?
• What roles do the founders take on within the company based on their qualifications?
• Is the topic of sustainability clearly assigned to a specific team member?
• Are CVs/resumes of the founding members included in the appendix?

Closing the Gaps

• Do the competency profiles of the founders align with the requirements of the key functional areas of the business (commercial, technical/specialist knowledge)?
• What competency gaps exist and how will they be addressed?

Key Persons and Exit Scenarios

• Are there key individuals outside the founding team who are critical to the success of the business?
• How can key individuals be retained within the company?
• Is there an exit scenario in place should one or more team members need to or choose to leave the team?
• Income of the founding members: Have you given thought to the calculation of a notional founder's salary?