Cofounder Disputes and Making Something People Want

Livingston says founder relationships are critical to startup success and that breakups can damage a company. She advises starting with someone you know well through work or school, rather than choosing whoever seems available.

Livingston says not to ignore doubts about a co-founder’s trustworthiness, effort, or competence. A founder leaving hurts productivity and morale; losing one of two founders can leave the company with a single founder.

Livingston identifies making something people want as the biggest early cause of startup failure, with founder disputes second. She says founders need to talk with users and often change their idea substantially; Airbnb evolved from conference air beds to renting entire places.

OrderAhead was the founders’ sixth idea, and Livingston says they found their big idea only after several attempts. Dropbox had a clear need but faced many competitors, so success depended on getting many details right over time.

Livingston notes that the path from starting a technology company to appearing on the cover of Forbes includes dramatic ups and downs.