If the skill set required to execute the business plays to the strength of the team,
execution risk should be less. For example, distribution: I wouldn’t
want to start
a business with a sales distribution strategy if I didn’t know sales. Conversely, if
it’s a consumer app that acquires
customers through search, a team of SEO
experts could be pretty effective.
If I’m trying to
solve a hard technical problem, I would want to make sure I have
incredible technical talent on board. I would
be more confident in an
entrepreneur that’s started one or more ventures previously, or at least has
experience in the skill sets required to start and run the business. As an
entrepreneur, I’d want to start a business that requires skills that I have. Of
course
you can learn, but that becomes one extra cost,
time constraint, and risk.
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