http://upandrunning.bplans.com/2008/01/02/3-vital-rules-for-early-stage-equity-ownership/ Start, Run, and Grow Your Business Fri, 17 Feb 2012 18:41:05 +0000 hourly 1 http://wordpress.org/?v=3.3 http://upandrunning.bplans.com/2008/01/02/3-vital-rules-for-early-stage-equity-ownership/#comment-124 Orian Marx » Blog Archive » Reflections of a Y Combinator Dropout: Lessons Learned Sat, 11 Oct 2008 09:43:31 +0000 http://upandrunning.entrepreneur.com/2008/01/02/3-vital-rules-for-early-stage-equity-ownership/#comment-124 [...] a lack of trust. It means clarifying assumptions and doing things right in case things go wrong. Get it in writing. Assumptions are dangerous, particularly if they occur between cofounders who are close friends. [...] [...] a lack of trust. It means clarifying assumptions and doing things right in case things go wrong. Get it in writing. Assumptions are dangerous, particularly if they occur between cofounders who are close friends. [...]

]]> http://upandrunning.bplans.com/2008/01/02/3-vital-rules-for-early-stage-equity-ownership/#comment-123 Tim Berry Fri, 11 Jan 2008 08:36:21 +0000 http://upandrunning.entrepreneur.com/2008/01/02/3-vital-rules-for-early-stage-equity-ownership/#comment-123 Thanks Gail, that's a nice addition. Tim. Thanks Gail, that’s a nice addition. Tim.

]]> http://upandrunning.bplans.com/2008/01/02/3-vital-rules-for-early-stage-equity-ownership/#comment-122 Gail Geronimos Fri, 11 Jan 2008 05:11:21 +0000 http://upandrunning.entrepreneur.com/2008/01/02/3-vital-rules-for-early-stage-equity-ownership/#comment-122 Couldn't agree more. In fact, I'd go a step further. Most people in startups don't really know what tey want out of the venture. It allsounds like a great idea and everyone gets carried away in the excitement. But few pay attention to the detail. 'So we've all got to work hard. That's fine, we can do that.' But who ever discusses what 'working hard' really means. One person might mean every weekend for the next 6 months and another might mean working 60 hours a week. It's all in the interpretation. Who talks about what the company was established to do AT THE START. How will decisions be made? Who will make decisions? What contribution is each person prepared to make both financially and in terms of time? Who will own the intellectual property/ And it goes on. All the entrepreneurs should get in a room and nut out these issues. And have someone independent there, because it may get a little tense. But it will save a lot of angst later and it may just save your business. Couldn’t agree more. In fact, I’d go a step further. Most people in startups don’t really know what tey want out of the venture. It allsounds like a great idea and everyone gets carried away in the excitement. But few pay attention to the detail.
‘So we’ve all got to work hard. That’s fine, we can do that.’
But who ever discusses what ‘working hard’ really means. One person might mean every weekend for the next 6 months and another might mean working 60 hours a week. It’s all in the interpretation.
Who talks about what the company was established to do AT THE START. How will decisions be made? Who will make decisions? What contribution is each person prepared to make both financially and in terms of time? Who will own the intellectual property/
And it goes on.
All the entrepreneurs should get in a room and nut out these issues. And have someone independent there, because it may get a little tense.
But it will save a lot of angst later and it may just save your business.

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