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How to choose the right co-founder for your startup

You have the plan, the desire, and the energy to start, but it has become very clear that you’re missing something — you need a co-founder.

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After a lot of hard work, brainstorming, researching, and testing, you’ve finally found the right idea to build your startup. You have the plan, the desire, and the energy to start, but it has become very clear that you’re missing something — you need a co-founder. Someone who can complement your skills, act as a sounding board or a voice of reason, and help you lift your startup idea into reality.

Having two founders on the team, rather than one, significantly increases a startup’s odds of success. It is clear that two fully invested founders are greater than the sum of their parts. Depending on your startup’s focus and your professional background, you might struggle to find anyone willing to go into business with you or you may be flush with options. Either way, here are the key considerations before tying the business knot with someone:

Define your core values

Whether it is hiring an employee, selecting a vendor, or choosing a co-founder, using a solid and well-defined set of core values is a great place to start. Your core values determine your priorities, goals and the decisions you’re willing to make. Are you super competitive or more of a collaborative person? Do you want work-life balance or are you thinking business 24/7? Focus on the values that make you truly different from others. They should be who you are, not who you hope to be.

Should you run multiple businesses as an entrepreneur? Part 2, Godwin Obaseki,

Assess your own strengths and weaknesses

We all have strengths and weaknesses. The key is becoming aware of them. Develop good strategies for leveraging strengths and mitigating weaknesses. Highly successful people have dialled this in and figured out where they excel and where they struggle; then they surround themselves with the right environment and right people. While it might be tempting to find a co-founder who is just like you, it’s better to find someone who complements you in the right way to benefit the future of your company.

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Make sure the other person can check their ego at the door

One of the key tests for a potential co-founder is making sure they can put aside being right in order to do what’s best for the partnership. This can be tough when you’re looking for someone very technical and knowledgeable. This type of person can be brilliant, but if they have little EQ, they’ll be difficult to work with over the long haul. Being humble, open to new ideas, and willing to collaborate on decisions is key to making a successful co-founder.

[READ MORE: Setting goals for your startup – what you need to know (Part 1)]

Ensure you both have the same level of drive and motivation

You don’t need to agree to work 80-hour weeks or be in the office until 2am every day, but you want to ensure that both of you have similar commitment levels.

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Discuss how you will deal with adverse circumstances

Every business and every partnership will go through tough times. Fundraising difficulties, cash flow shortfalls, employees leaving, and clients terminating contracts will all happen and they will put strains on the partnership. Make sure you and your co-founder have a strategy for dealing with tough times and are able to weather the storm.

Discussing these topics upfront is a great investment of time. The best business partnerships are successful not because of the heights they achieve, but because of the lows, they survive. While you’ll never find the perfect co-founder, taking some time to ponder these questions will ensure that you find the best one in the time you have.

Find the right combination of co-founders

Startups will be more successful when they have two balanced partners. Many founders make the mistake of finding a co-founder who is exactly like them, rather than finding someone with complementary skills. Ideally, startups should mix skill sets. For instance, companies shouldn’t have two people that are both tech-focused and don’t understand the business or marketing elements of running a startup. Make sure that if one co-founder is tech-focused, the other has the business acumen to complement the other.

Just as a startup should mix skill sets, they should do the same for personality traits too. For example, having two people who are afraid of public speaking won’t benefit the startup since they will have to pitch to investors, speak to clients, present in front of accelerators, and more. If one co-founder is shy, it’s best to have another person who is more outgoing and has confidence in speaking in front of people. Each of the co-founder’s strengths will support the other.

Find a partner you can trust

In addition to balancing personality traits, it’s essential that founders find partners they can trust. Trust, like Stephen Covey once said, “Is the glue of life. It is the most essential ingredient in effective communication. It is the foundational principle that holds all relationships.”

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Shared passion isn’t enough to ensure a successful founding partnership

Running a startup brings out the best and worst in people. A large percentage of startups fail due to inter-team conflict— not poor planning, but conflict between personalities that don’t mesh. This friction is often highest among co-founders, especially in a startup.

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Here’s why your business needs a solid value proposition (PART 1)

Have a plan to handle disagreements

Create a template of steps for working through disagreements. Planning ahead for potential problems will have a two-fold effect:

  • You already know how to react and respond to the disagreement when it arises.
  • The disagreement is less likely to arise because you have a game plan.

[READ ALSO: Setting goals for your startup – what you need to know (PART 2)]

Don’t settle – choose perfection

You wouldn’t settle for marrying someone who wasn’t “the one,” would you? Don’t settle when choosing your co-founder, either. Finding the perfect co-founder will take time, but it’s better to find “the one” than to go through a messy break-up later on. If you’ve found someone who you think is your new co-founder, be real with yourself when assessing their potential faults and the drawbacks of working with that person.

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Energy

Power: Nigeria records transmission peak of 5,459.50MW – TCN

TCN has announced that it hit a peak transmission of 5,459.50MW on the 28th, October 2020.

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Discos, TCN suspends KEDCO, TCN suspend Kano Electricity Distribution Company, Kano Electricity Distribution Company, Transmission Company of Nigeria, Market Operator in Nigeria's power sector

The Transmission Company of Nigeria (TCN) announced that it hit a peak transmission of 5,459.50MW on the 28th, October 2020.

This was disclosed on Thursday in a statement by Ms Ndidi Mbah, General Manager, Public Affairs, TCN.

She said Nigeria hit the milestone on October 28th and surpassed the earlier record of 5,420.30MW achieved on August 18.

What you should know

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Nairametrics reported that the Minister of Power, Engineer Sale Mamman, disclosed that Nigeria’s installed grid power generation capacity has grown from 8,000MW to 13,000MW under the leadership of President Muhammadu Buhari.

The new peak surpasses the 5,420.30MW achieved on Aug. 18 by 39.20MW,” Ms Mbah said.

The Acting Managing Director, Mr Sule Ahmed Abdulaziz, commended all the players in the power sector value chain for the feat.

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He attributed the gradual but steady improvement in the quantum of power delivery to collaboration by the sector players, as well as, the unbridled effort by the Federal Government – through the Ministry of Power – in setting the right environment for seamless operations.

The Acting Managing Director said the company will continue workings towards improved power transmission across the nation.

Nairametrics reported in August that the Federal Government of Nigeria revealed that the Siemens $2 billion power deal, under the Presidential Power Initiative (PPI) will save the nation over $1 billion annually.

Structure of the PPI funding:

  • 85% from a consortium of banks guaranteed by the German government through credit insurance firm, Euler Hermes.
  • 15% of the FG’s counterpart funding.
  • 2–3 years moratorium.
  • 10–12 years repayment at concessionary interest rates.

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Financial Services

CBN grants Mortgage Refinancing Companies approval to refinance Non-member banks

The CBN has expanded access to mortgage financing by removing restrictions on refinancing mortgages earlier imposed.

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The Central Bank of Nigeria (CBN), has granted approval to Mortgage Refinancing Companies (MRC), to re-finance non-member banks.

This is contained in a circular referenced FPR/DIR/GEN/CIR/07/056 and signed by Ibrahim Tukur, the Director of Financial Policy and Regulation Department, CBN.

The circular improved on the earlier provisions contained in section 7.3.1.5 which states that “A mortgage refinance company (MRC) shall not, without the prior approval of the CBN, extend total outstanding credit to any single borrower, which is equal to or more than twenty times the value of the borrower’s shares with the MRC or 25 percent of its shareholders’ funds unimpaired by losses.”

READ MORE: Unity bank wants to be seen, but time is running low

READ: NFF receives $1 million from FIFA as COVID-19 palliative

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What this means

Based on the provisions contained in the latest circular, MRCs are now free and legally permitted to refinance the qualifying mortgages of banks and all other non-members ( that do not hold equity), subject to meeting all other relevant requirements specified in the framework.

In a nutshell, the restriction on non-member mortgage lenders from refinancing their mortgages with MRCs has been removed.

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READ: MFBs, DMBs, others get new lending limit directive from CBN

Why this matters

Prior to the provisions contained in the latest circular, CBN had expressed fears that provisions of section 7.3.1.5 negatively impacts the mortgages sub-sector, as it constrains the MRCS from refinancing the mortgages of non-shareholder banks. Therefore, the new order will help to remove the restrictions already highlighted.

In lieu of this, the latest circular stated that the provision of section 7.3.1 5 is hereby revised to “the MRC shall not, without prior approval of the CBN, extend total outstanding credit to any single borrower, which is equal to or more than 25 percent of its shareholders’ funds unimpaired by losses,” the circular reads.

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Business News

Nascon Allied Industries Plc: Increase in sale of goods boosts revenues

Nascon Allied Industries Plc recorded a boost from an increase in the sale of goods revenue-generating unit

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Nascon Allied Industries Plc: Increase in sale of goods boosts revenues

Nascon Allied Industries Plc recorded a boost from an increase in the sale of goods revenue-generating units, as total revenues increased slightly. The company reported revenues of N21.87 billion in 2020 (9months) – 4.01% increase compared to N21.03 billion in the corresponding period of 2019.

READ: Focus on Aluminium Extrusion Industries Plc and its declining 2019 performance

What you should know

Key highlights from 2020 (9months) results

  • Revenues increased by 4.01% from N21.03 billion to N21.87 billion YoY.
  • Revenues from sale of edible, refined, bulk grade salt; seasoning and vegetable oil, increased to N21.87 billion, +22.53% YoY.
  • Other income increased to N12.81 million, +27.43% YoY.
  • No revenue was recorded for freight income on the deliveries of salt and seasoning income-generating unit.
  • Gross profit increased to N8.96 billion, +74.56% YoY.
  • Operating profit increased to N3.64 billion +18.60% YoY.
  • Pre-tax profits increased to N3.47 billion, +16.63% YoY.
  • Post-tax profits increased to N2.29 billion, +13.27% YoY.
  • Earnings Per Share increased to 115 kobo, +12.75% YoY
  • Total assets increased to N44.36 billion, +45.79% YoY.
  • Total liabilities increased to N32.04 billion, +67.21% YoY.
  • Total equity increased to N12.32 billion, +9.35% YoY.

(READ MORE:Dangote’s NASCON Allied Industries Plc moves operation from Apapa)

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Bottomline

Nascon Allied Industries Plc recorded a boost from increase in sale of goods revenue-generating unit, but no revenue was recorded for its freight income on the deliveries of salt and seasoning revenue generating-unit.

READ: Food, Agro & Allied Industries set to export agri-products to New Zealand

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Though companies have generally recorded decreased revenues in the last three quarters, mostly due to COVID-19; Nascon Allied Industries Plc was able to increase its total revenues and pre-tax profits in the period under consideration.

READ: Nigeria Air: Domain name registration and N48 million controversy!

 

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