Challenges on the Road to Growth

07/28/2016 00:07:00 to watch
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One of the central dilemmas for entrepreneurs is that of wealth versus control. Very few entrepreneurs are able to achieve being both rich AND king.

Suggested Readings

Founders School || Founder's Dilemmas || Challenges on the Road to Growth || Impact Guide (PDF).

Wasserman, Noam. The Founder’s Dilemmas: Anticipating and Avoiding the Pitfalls That Can Sink a Startup. Princeton, New Jersey: Princeton University Press, 2012. Chapter 11.

Hoffman, R. If, Why, and How Founders Should Hire a “Professional” CEO. Reid Hoffman Essays on Entrepreneurship, Civics, & Intellectual Life. 2013.

Wasserman, Noam "The Case Study: When Founders Step Aside". Financial Times. October 22, 2012.

Wasserman, Noam and Furqan Nazeeri. (2012). "Fear vs. Greed at Facebook". Inc. Magazine, March 27, 2012.

Wasserman, Noam, Furqan Nazeeri, and Kyle Anderson. "A 'Rich-vs.-King' Approach to Term Sheet Negotiations." Harvard Business School Background Note 810-119, March 2010. (Revised December 2012).

Questions for You

What resources, skills, and contacts am I missing now, and what will I have to give up in order to attract them to my startup?

Am I trying both to grow a large company and to maintain control of it? Have I thought ahead to the decisions where I might have to give up one goal in order to achieve the other – e.g., when making decisions about whether and how to attract the resources, skills, and contacts I am missing?

Would I favor a “rich” outcome even if it means that I will no longer be parent of my baby, or a “king” outcome even if it means that my startup will be smaller than its potential? Are my decisions at crucial junctures aligning with my goal? Am I comfortable with where this path is leading, or will I regret the early decisions that took me away from the outcome that I will celebrate?

Questions for Your Team

What are our “wealth versus control” tendencies? Do our preferences align? If we do not align, how can we work to harness the benefits of conflicting tendencies?

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