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Sam Altman, the former president of Y Combinator and current CEO of OpenAI, is no stranger to the world of startups. Throughout his career, he has seen countless businesses rise and fall, and he’s identified one key factor that separates the winners from the rest: the team you build is the company you build.
Photo: Y Combinator YT
In Altman’s eyes, a strong product and market fit are essential. But to turn a product into a long-lasting company, founders must shift their focus to building a world-class team. Let’s explore why a great team is the foundation of a great company and how successful founders make this critical transition.
The Early Days: Building a Product, Not a Company
Most startups begin with a simple goal: build a product people want. During this stage, founders are hyper-focused on product-market fit, rapid iteration, and gathering user feedback. It’s a scrappy, hands-on process where founders wear multiple hats.
Take Instagram’s story, for example. In its earliest form, Instagram was a location-based app called Burbn. The product wasn’t gaining traction until founders Kevin Systrom and Mike Krieger pivoted to focus solely on photo-sharing. They were laser-focused on getting the product right—and that focus paid off when Instagram’s popularity exploded.
But as Altman points out, once the product starts to gain momentum, the real challenge begins: transitioning from building a product to building a company.
The Transition to Building a Company
All successful founders eventually face a turning point. The product is gaining users or customers, and now the company must grow. At this stage, founders can no longer do everything themselves. They need to build a team that can take the company to the next level.
Altman emphasizes that this transition is critical:
“Building a company really is about the team.”
The right team doesn’t just execute the founder’s vision—they amplify it. They bring fresh ideas, solve problems, and push the company forward.
Take Stripe, the payment platform founded by Patrick and John Collison. Early on, the brothers did everything from coding to customer support. But as Stripe grew, they prioritized hiring top talent in engineering, sales, and operations. Today, Stripe is one of the world’s most valuable startups, and much of its success can be attributed to the team they built.
Why a Great Team is the Ultimate Competitive Advantage
A strong product can get you in the game, but a strong team keeps you there. Great teams innovate, adapt to challenges, and create a culture of excellence. They turn vision into reality.
Consider Google. In its early days, Larry Page and Sergey Brin had a revolutionary product: a search engine that ranked pages based on relevance. But what truly made Google unstoppable was the team they built. From hiring Eric Schmidt as CEO to attracting top engineers, Google’s early team helped transform it from a scrappy search engine into a global powerhouse.
Altman believes that founders who prioritize team-building are better equipped to navigate the ups and downs of startup life. Markets change, competitors emerge, and products evolve—but a strong team can weather any storm.
How to Build a World-Class Team
So how do you go about building a great team? Here are a few key takeaways inspired by Altman’s advice and real-world examples:
1. Hire for Potential, Not Just Experience
In the early days, you want people who are hungry to learn and grow. Look for team members who are passionate, adaptable, and aligned with your company’s mission. Experience is valuable, but attitude and potential often matter more.
Take Airbnb’s co-founders, who hired employees who were deeply passionate about hospitality and customer experience. This alignment helped Airbnb create a culture of service that differentiated it from competitors.
2. Build a Culture of Ownership
Empower your team to take ownership of their work. When people feel a sense of ownership, they’re more motivated to go above and beyond. Give them the autonomy to make decisions and solve problems on their own.
Amazon’s Jeff Bezos famously encourages a culture of ownership by holding small teams accountable for their own projects. This approach has driven Amazon’s relentless innovation and efficiency.
3. Prioritize Communication and Transparency
Open communication is the glue that holds great teams together. Be transparent about the company’s goals, challenges, and progress. Encourage feedback and foster a culture where ideas can be shared freely.
Altman himself is known for being open and accessible to the teams he leads, whether at Y Combinator or OpenAI. This transparency builds trust and creates a collaborative environment where everyone feels valued.
4. Don’t Settle for Mediocrity
As Altman puts it,
“The team you build is the company you build.”
Every hiring decision matters. Avoid the temptation to hire quickly just to fill a role. Instead, be patient and wait for the right person. One wrong hire can disrupt the company’s culture and slow down progress.
Team Over Everything
Sam Altman’s advice is clear: if you want to build a successful company, you must prioritize building a world-class team. A great product and market fit may get you started, but a great team will carry you through every stage of growth.
So whether you’re an early-stage founder or scaling your business, remember this simple truth: the team you build is the company you build. Invest in your team, and your company’s potential will be limitless.
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