Friday, January 30, 2009

Eight "Don'ts" for Entrepreneurs

The second part of the list I posted a few days ago. This is a short and to the point list of "Don'ts" for entrepreneurs -- it was compiled by Alexander Muse based on a presentation by Martin Plaehn, CEO of Bungee Labs. I agree heartily with its recommendations. Especially the last one. Good advisers are necessary for a start-ups success, but they are not sufficient.

-- Don’t hire of goodness of heart or friendship
-- Don’t hire anyone who you and your team are not genuinely excited about
-- Don’t tolerated mediocre engineers; for that matter, mediocre anyone. An early sign of mediocrity is when you downgrade tasks and expectations to align with an employee
-- Don’t count on your investors to take care of you when things get rough and/or protracted
-- Don’t over interpret or count on the stated operating “value-add” from investors during their solicitations during fundraising
-- Don’t build out your staff or infrastructure in expectation of rapid growth; be strong enough and tolerant of market back-pressure or order/service backlog
-- Don’t keep the same sales and marketing execs if the business isn’t growing or charging for growth; no sales and marketing VP was ever fired prematurely
-- Don’t over delegate to consultants, accountants, or lawyers; even the great ones are only as good as you are as an engaged client; read and understand everything; if left alone, you must have a point of view, right or wrong

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Dividends and Preferences by Hank Heyming is licensed under a Creative Commons Attribution 3.0 United States License.