Trial projects part 2 - TFP - 10/16

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After 2 months with Byldd, Jasie’s platform was live, onboarding users and generating revenue. By the end of 8 months, they were acquired by a larger Fintech company.

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📰 Today's Edition: Co-founder Trial Projects Part 2

So you've met another awesome hippocorn who might be your future co-founder.

You're vibing, the conversations are flowing, and you're both excited about building something together.

But how do you know if you'll work well together before you dive headfirst into a startup?

Enter the trial project.

Your relationship test drive for potential co-founders.

This is part 2 of a two-part series. Part 1 covered bringing someone into your existing startup. This article covers testing a partnership when you're both starting fresh together.

What's a Trial Project Anyway?

Think of it like dating before marriage, but for business partnerships.

A trial project is exactly what it sounds like. You and your potential co-founder work on something together for a set period to see how compatible you are as business partners.

The great thing about doing a trial is that it doesn't even matter what you build.

The project itself isn't the point – it's all about the process.

Three Things to Get Right

Okay, so we've watched a bunch of different teams use this method to vet potential cofounders.

Everyone runs it their own way and there's no one “right” approach.

Because no matter how you do it, you're really trying to nail three main things.

#1: It's a Two-Way Street

Both of you are evaluating each other.

Neither person is the "interviewer" and you're both figuring out if this partnership makes sense.

And anyone can walk away whenever. No drama, no hard feelings, just "hey, this isn't it." That's the whole point.

#2: Nobody Gets Paid

This isn't freelance work. You're not hiring each other or paying for each other's time.

You're both figuring out if you want to work together before diving into the startup deep end.

#3: Figure Out Intellectual Property (IP) Upfront

Your code, designs, ideas, and anything else.

You need to decide who owns what you build during the trial, but don't stress about it too much.

As a purple hippocorn, I am no lawyer, so you may want to consult your counsel on this one

Hot tip: Usually, whoever cares most about the idea (aka the one who most likely brought it to the table) gets the IP if things don't work out.

Short-Term vs. Long-Term Projects

Unlike in part 1 where we recommend 2-4 weeks, you've got two main approaches here:

The Sprint Approach: Work together for just a few weeks on something small. Quick, clean, and you'll know pretty fast if you click.

The Marathon Approach: Start working together more casually over a few months. The upside? You get a real feel for the partnership. The downside? You might invest months only to discover you're not compatible and walk away empty-handed.

If you're the type who loves working on cool stuff with cool people regardless, the marathon approach might be worth the risk.

Plus, you'll probably learn something valuable even if the partnership doesn't pan out.

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What Should You Actually Build?

Here are some ideas to get your creative juices flowing:

  • Startup Project: Take one of your actual business ideas for a spin. Perfect for testing how you handle real startup challenges together.

  • Random App: Can't think of a "serious" project? Build something fun and silly. The goal is seeing how you communicate, divide tasks, and handle roadblocks together.

  • Existing Problem: Find something that bugs both of you and try to solve it. Great way to see if you approach problems similarly.

Don’t forget, you're testing communication, work quality, speed, and that indefinable "do we actually enjoy working together?" factor.

Be honest with yourself. You're in a trial.

If you don't like it then you can get out of this easily unlike a co-founder relationship which is much harder.

The Equity Conversation

Yup, you need to have it.

Even though you're not splitting equity during the trial, you should chat about it at a high level upfront.

It's like talking about kids on a first date - you don't need to plan the nursery, but it's good to know if you're on the same page.

At Hustle Fund, we’re on team "equal partnership."

When everyone has equal skin in the game, everyone feels equally valued and motivated.

But some folks prefer the "someone needs to be the tiebreaker" approach, where one person has slightly more equity for decision-making power.

Or if you get into this project and realize, “Wow, one person is really bringing way more to the table than the other,” then it might be worth thinking about splitting things unequally.

Not everything has to be a perfect 50/50, you know? But it does make things a bit easier for morale.

Have the conversation early, even if you save the actual numbers for later.

The Bottom Line

Finding the right co-founder is one of the most important decisions you'll make as an entrepreneur.

A trial project gives you real data instead of just good vibes and coffee shop conversations.

Sure, it might not work out. But isn't that better than discovering it won’t work out six months into building your actual startup?

And you'll have to unwind a legal partnership which has its complications.

Consider it the ultimate "try before you buy" approach to co-founder selection.

Date before you incorporate,

Dunky from Hustle Fund

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🎥 Watch This

This is part one of our three-part series on how to run your VC pitch. We cover the art of the start: how to open strong, whether to use a deck, and how to read a VC’s cues to adapt on the fly.

We explain more in this episode of Uncapped Notes.