About common “member recruitment” failures made by people in their 20s

When starting a business, the most important thing is 'who you do it with'.

The development of a business changes significantly depending on who you choose as your business partner. However, in the early stages of starting a business, there are many cases of failure in gathering companions. Especially when trying to start a business in your 20s, most people experience the usual pattern of failure. So, what kind of mistakes do they make?

To put it simply, it's 'gathering too many companions'. There are people with various abilities in the world. And when you create a large group, it feels like 'something is moving'. So you temporarily invite talented or close friends to join your team. Furthermore, companions introduce and bring in more companions.

In this way, unknowingly, the number of people increases even before income is generated. It's a trap that people in their 20s tend to fall into when trying to start something.

Do not gather people based on camaraderie or comfort.

It might be comfortable at first. But the problem arises after you start earning income. Of course, a large number of people means you have to be able to support everyone. Once income starts coming in, not many people want to work as volunteers forever.

Then you suddenly realize. A large organization means you have to earn that much more. In the initial stages of a business, supporting even one or two people is extremely difficult. Nevertheless, if you keep increasing companions to 5, 6, 10, or 15 people, some will become unsupported. And those who are not subject to income will naturally be eliminated, leading to friction in human relationships.

Furthermore, cracks begin to appear even within the core members. For example, let's say a service succeeds and generates a certain amount of revenue. Then, issues of money arise, such as who thought of it first, or how the income should be distributed.

If it becomes a company, it's even more difficult. Who will be the director, and who will take on which role? You have to spend a lot of effort discussing it. Originally, while spending effort on such things, the discussion should be directed towards expanding the service. If trouble arises here, it's even worse. There are even cases where people who were originally good companions end up suing each other.

Money troubles and slow decision-making arise.

In other words, if you expand your organization too much before earning income, when you finally achieve monetization, you will be burdened with numerous interpersonal problems. In reality, the period after monetization is difficult, and you shouldn't be spending time on such things. It's no exaggeration to say that time during a startup is as valuable as life itself. There's no time to worry about human relationships.

Furthermore, decision-making becomes slow. A large number of people means more people whose opinions must be listened to, and communication becomes slower. The 'quick decision-making' that should be present in the initial stages becomes difficult. As a result, a few people holding the leadership might end up making decisions, but even then, the number of people with complaints will increase, and the team will gradually disperse. Especially in the initial stage, it's always better to have fewer people.

Jeff Bezos, the founder of Amazon, refers to this as the 'Two-Pizza Rule'. It means that when starting something, it's best to do so with a number of members that can be fed by two pizzas.

Employ a number of people commensurate with sales.

Honestly, if I were to describe the ideal form, I think it's starting alone. First, start a service by yourself and earn enough income to support yourself. From there, save money or get help from investors, incorporate the company, and hire a partner who is knowledgeable about money.

While discussing with someone knowledgeable about money, clearly visualize each person's salary and the income/expenditure. Simultaneously, hire partners, continuously invest money into the company, and increase companions as needed. In other words, it's best to start small and expand the organization according to profits.

Furthermore, even if the business grows, it's better to create a system where the organization can operate with the minimum possible size. Necessary resources should be 'purchased' from external sources by paying proper money. If you propose revenue sharing just because you don't have money, things will get complicated. The more the amount, the more you have to pay the other party, which can lead to trouble when profits actually increase.

It's the era of sharing, but it's better to purchase 'human resources'.

As income increases, the need for negotiation will arise even with revenue sharing. It's the kind of negotiation where you want to change from 10% initially to 5%. You can see that this will become a very sensitive issue. When starting and expanding a business, it's best to operate with the minimum necessary number of people. Interpersonal conflicts can be the biggest obstacle for a business, so it's better to have as few core members as possible. After that, you simply 'hire' people.

When developing a business at a young stage, interpersonal friction tends to be very common. That's why it's necessary to start with one or two people and be prepared to grow the business to a certain extent. If you involve too many people from the beginning, not only are troubles more likely to occur, but decision-making will also become very slow.

To push through a bold idea

There are often people who say, 'Let's discuss and decide together.' Some colleagues might also wish for that. But do you know what kind of case makes innovation most likely to occur and business development most speedy? It's when one person takes leadership, proposes an idea, executes it, even if somewhat forcefully, and makes it a success. Ideas discussed by everyone tend to lose their sharp edges and transform into average proposals.

The sharp edges of an idea created and released by one person can, surprisingly, have an impact on the world. What's needed is a system to reinforce the surroundings to make that bold idea successful. It's not about breaking the bold idea. If an idea becomes bland after discussion, it might be better to abandon it.

However, sometimes leaders who are prone to misunderstanding tend to confuse their 'bold ideas' with 'selfishness.' Various misunderstandings and assumptions can pile up, and after pushing their own opinions, they can ultimately cause significant disadvantages to the organization. Colleagues might try to hold discussions out of concern for this, but if it's such a leader, it's better for the colleagues not to be on the same boat in the first place.

Operate with the smallest unit

To avoid trouble, to reduce interpersonal risks, and to push through bold ideas, you should start with the minimum number of people in the initial stages. No matter how big the business, the ideal is to start with one or two people. Once profits increase, consider reinforcing personnel. Until then, simply continue the solitary battle. That's why you can create an organization that runs smoothly.

Many renowned entrepreneurs, and even large organizations today, often faced significant struggles with partners and interpersonal relationships in the past. However, when you have little experience, it's hard to have the courage and strength to venture out with a small number of people. But it is precisely by somehow gaining strength and forging ahead that a trouble-free organization is built afterward. Keep the organization minimal. For anyone about to start something new, please take this as a reference.