Often downplayed in the excitement of starting up a new business
venture is one of the most important decisions entrepreneurs will
face: should they go it alone, or bring in cofounders, hires, and
investors to help build the business? More than just financial
rewards are at stake. Friendships and relationships can suffer. Bad
decisions at the inception of a promising venture lay the
foundations for its eventual ruin. "The Founder's Dilemmas" is the
first book to examine the early decisions by entrepreneurs that can
make or break a startup and its team.
Drawing on a decade of research, Noam Wasserman reveals the
common pitfalls founders face and how to avoid them. He looks at
whether it is a good idea to cofound with friends or relatives, how
and when to split the equity within the founding team, and how to
recognize when a successful founder-CEO should exit or be fired.
Wasserman explains how to anticipate, avoid, or recover from
disastrous mistakes that can splinter a founding team, strip
founders of control, and leave founders without a financial payoff
for their hard work and innovative ideas. He highlights the need at
each step to strike a careful balance between controlling the
startup and attracting the best resources to grow it, and
demonstrates why the easy short-term choice is often the most
perilous in the long term.
"The Founder's Dilemmas" draws on the inside stories of founders
like Evan Williams of Twitter and Tim Westergren of Pandora, while
mining quantitative data on almost ten thousand founders.
People problems are the leading cause of failure in startups.
This book offers solutions.
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