The #1 reason good startups fail (and how we beat the odds)

Here’s a fun fact (or a terrifying one, depending on your perspective):

65% of startups fail because of co-founder disputes!

Not bad ideas, funding issues, or lack of experience — just messy human relationships.

But here’s the good news:

After years of building cool stuff together at AE Studio, we’ve cracked the code on avoiding drama and keeping our team in sync 🙌

Our secret?

Two simple thinking tools that we use at both the founder level, and across our entire team:

1. A core values document

Most companies have “core values.”

But let’s be honest: they’re often just buzzwords 🥱

At AE, our values are actionable principles that we lean on daily.

Internally, this is a living, breathing document that anyone in the company can contribute to.

We introduce it to new team members on day one, use it to navigate conflict, and refer to it constantly in meetings and one-on-ones.

Our core values shape everything we do — so if a potential client or employee doesn’t vibe with them, they likely won’t vibe with us!

2. PDP personality tests

Core values align expectations, but the PDP personality test helps us navigate our differences.

We conduct individual PDP reviews with every new team member.

This tool highlights everything from:

• Energy styles (e.g., follow-through vs. persistent vs. rocket-launch style).

• Motivators and demotivators.

• Communication styles and backup styles (how you might act when energy is low)

• How we react under stress, and how to handle it.

Before starting new projects, we review and compare team members’ PDP profiles side-by-side to understand how to work better together.

For example:

If someone has a backup style that kicks in under stress (like becoming too detail-oriented at the expense of bigger, more important tasks), we can identify it early and develop strategies to help them work more effectively.

It’s like unlocking a cheat code for team synergy! ✌️

And these thinking tools don’t just help us avoid drama...

They also set up our team members to become co-founders themselves.

At AE, we’ve built an in-house startup incubator (called Skunkworks) where team members can pitch ideas, form teams, and launch businesses using our resources.

Because they’ve already built strong relationships, and learned how to work together effectively, their co-founder dynamics are rock solid.

Pretty cool, right?

And here’s the kicker:

These are tools that anyone can use!

So feel free to steal them for yourself, to build better co-founder relationships and align your team.

Because after all...

Success doesn’t happen by accident.

It’s built on strong partnerships, clear values, and having the right people in your corner 🤝

If you’re a founder or executive with an ambitious idea or a challenging project that needs the right team to bring it to life:

Book a consultation call with us here, and let’s talk.

We’ll bring the expertise you need to fast-track your vision and turn it into something extraordinary.

Until next time on AE Studio Bytes!