HIRE THE WRONG PEOPLE
A common pitfall for startups is bad choice of personnel, Mr. Martín-Villa says. As he recalls, one of Wayra’s most exciting startups, run by two British brothers, involved the use of near-field communication technology allowing mobile phones to access Wi-Fi in stores without the need for passwords. Good idea, but instead of iterating and developing their product, the brothers were found to be using the money for heavy partying instead. Then there’s the issue of numbers. Any project is too much for one single person, no matter how gifted; three-people teams seem to works best, but three-way splits of stock at 33% each could also cause problems, since three people are unlikely to contribute equally. This often leads to messy breakups.
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To read the original article: 5 Things Startups Do Before They Crash - Five Things - WSJ
