Start-up companies are tough to run at best," says Eric
Almgren, co-founder and president of Mixman Technologies Inc., a
San Francisco designer and manufacturer of music software.
"And it's even tougher if you're going into a business
you know nothing about." Many young entrepreneurs solve this
problem by teaming up with an older partner, someone who can
complement a fresh idea with business acumen.
Such was the case for Almgren, 32, and his partner, Josh
Gabriel, 30. When they started Mixman in 1993, they had the vision
but not the expertise required to break into a new industry. Enter
Roger Summit, founder and recent retiree of Dialog Corp., a
database information service company in Palo Alto, California, who
came on board as a partner with the experience of growing a
successful business from the ground up. "Roger was there any
time we needed to have a meeting with an investor, to strategize or
to write a business proposal," says Almgren.
Five months later, the three partners brought in Dick Asher, the
retired CEO of Polygram Records, who was attracted to the
company's marriage of technology and entertainment. "None
of us had any experience in the record business," says
Almgren. "Dick really knew how record companies operate and
was instrumental in helping us develop relationships within the
industry."
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Although Summit and Asher are roughly twice as old as Almgren
and Gabriel, the four partners have found only benefits to their
working relationship. When you start a company, says Almgren,
"[and] have someone who's done it before and is willing to
advise you and lend their experience, they may stop you from going
down roads that may be dead ends or may get you in trouble. They
can provide [proven] ideas you may not have thought of."
Robert Spekman, professor of business administration at Darden
Graduate School of Business Administration at the University of
Virginia in Charlottesville, says partners of different generations
can make up for each other's weaknesses. "One may be a
seasoned veteran, while the other one has a good idea," he
says. "Or one has a good idea and the other one has
money."
And the key to keeping the cross-generational partnership
healthy? "You've got to communicate," says Spekman.
"[The partners'] sense of long-term vs. short-term or
patience with developing the business may not be the same.
You'll lessen the chance of difficulties if all these issues
are discussed before entering the relationship, rather than waiting
for something to happen for you to see your partner's true
colors."
Almgren agrees. "It comes down to the personal
relationship. If they're good people and you like them, then
the more experience [they have], the better."
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