Equity And Commitment

For equity to create commitment rather than conflict, you must allocate it very carefully

• Startups don’t need to pay high salaries because they can offer part ownership of the company itself
  • Effectively orienting people toward creating value in the future
• Anyone who prefers owning a part of your company to being paid in cash reveals a preference for the long term and a commitment to increasing your company’s value in the future

Only at the very start can you set the rules that will align people toward the creation of value in the future

• It lasts as long as a company is creating new things, and it ends when creation stops
• If you get the founding moment right you can create value
  • Steer the future toward the creation of new things instead of the stewardship of inherited success

LOK: 4. Management
RL: Zero to one
IDEAS: Startups Companies Management