In the world of startups, who you do business with can make or break your company. As a startup founder, I’ve learned this the hard way.
There are certain types of people who, despite their charm or potential promises, can derail your business faster than you can say “venture capital”.
These individuals range from the eternally pessimistic to the overly demanding, and they’re best avoided if you want to keep your sanity and your profits intact.
In this article, I’m going to share with you the 7 types of people you should probably steer clear from in the business world.
Trust me, your future self will thank you.
1) The eternal pessimist
When it comes to business, optimism is more than just a nice-to-have attitude. It’s a necessity.
In the world of startups, you’ll inevitably face challenges, setbacks, and a fair share of failures.
It’s an unpredictable ride that requires resilience, persistence, and an unwavering belief in your vision.
That’s why doing business with an eternal pessimist can be disastrous.
Pessimists have a knack for seeing the worst in every situation.
They can quickly drain the energy and morale from your team, making it even harder to overcome obstacles.
Their constant negativity can also influence your decision-making process, causing you to second-guess your strategies and potentially miss out on valuable opportunities.
While it’s crucial to have a realistic perspective in business, partnering with someone who perpetually expects the worst isn’t just demoralizing – it can seriously hinder your startup’s growth.
Instead, surround yourself with individuals who can balance realism with optimism, fostering a positive and encouraging climate that fuels progress and innovation.
2) The commitment-phobe
In my early days as a startup founder, I had an encounter with a classic commitment-phobe, and it’s an experience I won’t soon forget.
Commitment-phobes are people who are hesitant to make decisions or stick to them.
They constantly waver, change their minds at the last minute, or avoid making commitments altogether.
I once entered into a business agreement with a supplier who seemed reliable and came highly recommended.
But as we began working together, I realized they were reluctant to commit to deadlines, prices, or even specific products.
One moment they would agree to deliver goods by a certain date, and the next moment they’d back out, claiming unforeseen circumstances.
This caused significant delays in our production line and resulted in lost sales and frustrated customers.
The experience taught me a valuable lesson: business is built on trust and reliability.
If you can’t depend on someone to stick to their commitments, it’s probably best not to do business with them in the first place.
Since then, I’ve made it a point to carefully evaluate potential partners for their consistency and commitment before jumping into any agreement.
3) The know-it-all
In business, collaboration and open-mindedness are key.
You want to work with people who are willing to listen, learn, and adapt. That’s what makes the know-it-all such a difficult character to deal with.
Know-it-alls believe they have all the answers.
They rarely listen to others’ opinions or take advice, because they’re convinced their way is the best, if not the only, way.
People who claim to know everything are often those who know the least.
This is known as the Dunning-Kruger effect – a cognitive bias where individuals with low ability at a task overestimate their ability.
In a startup, where innovation and flexibility are critical, a know-it-all can stifle creativity and slow down progress.
Their inability to consider other perspectives or admit when they’re wrong can lead to poor decisions and missed opportunities.
When it comes to choosing your business partners, look for those who value continuous learning and are open to new ideas and feedback.
4) The constant critic
Constructive criticism is a valuable tool in business. It can help identify weaknesses, make improvements, and drive growth.
But a constant critic, someone who only points out flaws and never appreciates success, can be destructive to your startup.
Constant critics tend to focus on the negatives. They dwell on what’s wrong, rather than finding solutions or celebrating what’s right.
This type of negativity can erode team morale, harm productivity, and create a toxic work environment.
It’s important to remember that building a successful startup requires a balance of positive reinforcement and constructive feedback.
If someone in your business circle seems to be stuck in perpetual criticism mode, it might be time to reconsider whether their presence is beneficial for your startup’s growth and overall well-being.
5) The credit hog
There’s a saying that success has many fathers, but failure is an orphan. I’ve found this to be particularly true when dealing with credit hogs.
A few years back, I was part of a project that turned out to be a huge success.
We had worked long hours, brainstormed countless ideas, and faced numerous setbacks. But in the end, our hard work paid off. The project was a hit.
However, one of the team members – let’s call him John – started taking all the credit for the success.
He’d conveniently forget to mention the rest of us during interviews or meetings. It felt like our contributions were being erased and all the praise was going to John.
This experience was incredibly demoralizing and caused a lot of tension within the team. It taught me how important it is to acknowledge everyone’s contributions in a business setting.
Credit hogs can damage team harmony and morale. They can make others feel undervalued and overlooked, which can lead to decreased productivity and job satisfaction.
If you encounter someone who consistently takes credit without giving any, it may be a sign that they’re not the right person to do business with.
6) The drama king or queen
While running a startup, the last thing you need is unnecessary drama. Unfortunately, every business realm has its share of drama kings and queens.
These are individuals who thrive on conflict, gossip, and creating tension. They seem to enjoy stirring the pot and watching the fallout, often at the expense of others.
Drama queens or kings can be incredibly disruptive in a business setting.
They can lower morale, divide teams, and create a hostile work environment. This can lead to poor productivity, high staff turnover, and potentially damage your company’s reputation.
Running a successful startup requires focus, hard work, and a harmonious team.
If you encounter someone who seems more interested in drama than in contributing positively to the business, it might be best to keep your distance.
A drama-free environment is conducive to growth, productivity, and overall success.
7) The untrustworthy individual
At the heart of any successful business relationship is trust. Without it, no amount of talent or resources can guarantee success.
Untrustworthy individuals are those who break promises, fail to meet commitments, or behave dishonestly.
They can cause significant harm to your startup, damaging relationships, tarnishing your reputation, and potentially leading to financial losses.
Trust is not a luxury in business; it’s a necessity. If you can’t trust a potential partner or collaborator, it’s usually a clear sign that you should avoid doing business with them.
Trust your instincts and protect your startup from potential harm.
Business is challenging enough without having to constantly worry about the reliability and integrity of those you work with.
Final reflection: The business of people
The world of startups is as much about people as it is about products or services. It’s a realm where relationships and interactions can determine the trajectory of your venture.
One valuable lesson from the eminent management expert, Peter Drucker, comes to mind: “The most important thing in communication is hearing what isn’t said.”
In the context of our discussion, it’s crucial to read between the lines, observe behaviors, and understand the underlying nature of those we choose to do business with.
In this dynamic world of startups, you don’t just invest in ideas or projects; you invest in people.
The types of people we’ve discussed aren’t just character sketches but potential realities we might face.
As you navigate through your business journey, be watchful.
Choose your business associates wisely, because their character and behavior can influence not only the success of your startup but also your entrepreneurial journey as a whole.
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