10. Equity is the startup’s currency.
9. In the early stages, key people demand more equity.
8. People are an easy expense to add but hard to maintain. They are an even more difficult expense to eliminate.
7. Big contributors are always expensive. Reduce this expense by trading equity for salary.
6. The smart founder trades equity appreciation for the increased opportunity of success in the near term.
5. Make your startup’s hiring priorities sales, then product, and finally administration.
4. In the early stages spend money on the people that make you money versus the people who make you efficient.
3. The earlier in the startup’s life, the scarcer the cash and the greater the equity needed to attract the high powered contributor.
2. People are your biggest continuing expense, typically two thirds of your expense base.
1. Go slow on adding people when coming out of the blocks. You will never regret it.
Today’s Question: Are you making the right hires for your startup?