The Winning Team – The Real Answer

I hate blanket rules with no explanation. Having a winning team before starting a business is one of them.

Book after book, or VC after VC will give that same advice without providing a logical underpinning, or reason for the advise. It’s akin to the teacher that says because I said so, rather than actually giving a real reason. I think it’s also because in business people think anecdotally, or are unable to give the real reason, they just know because they’ve been told that or that’s what they’ve seen. But for some reason they don’t explain or know why. Well I’m here to tell you why!

It took a physics analogy in a post by my virtual mentor (Seth Godin) for me to understand what it meant by having a winning team, and it all has to do with the stable size of a business and it’s ability to scale.

Now the stable size of a business depends on the business you are in. That size could be 1 person or 5 people or 10 people. But if a 1 person company tries to start a business that works best for 5 people, it will most likely fail.

Also, VCs are trying to build companies that can scale fast to turn a little bit of money into a large amount of money, companies without a foundation to move from one level of business to another are most likely not going to get funded.