Business Maturity
Raj Gavurla
by Raj Gavurla of LiiiVEN, Inc.
Mature businesses show there maturity through consistency. In other words they are reliable. It’s odd to receive calls from suppliers on behalf of well known organizations that cannot keep an appointment. What does this say about your company? It’s not appealing. People’s time is valuable. You should keep the appointment although you may not be interested because it’s your word, you’ll learn more, and establish trust.
Consistently Play At The Top of Your Game
Raj Gavurla
by Raj Gavurla of LiiiVEN, Inc.
It’s not rocket science. Customers and buyers want to do business with your organization because they know what is agreed upon will be delivered on time. Recently, I worked with a company and they had a hard time telling me a delivery date. The reason was because they didn’t know when their supplier would complete their part. They didn’t say they would check with the supplier and get back to me with a delivery date. Obviously, they’re not motivated.
Entrepreneurs Need To Work On?
Raj Gavurla
by Raj Gavurla of LiiiVEN, Inc.
When working with entrepreneurs and small business owners I see a drive and passion that is necessary for success. There are eight areas where consistent actions are needed to produce consistent results. As you develop and grow, the actions change because of your accomplishments and your business needs evolve. The one action, for those in startup mode or are in steady mode, not growth mode most often overlooked is the action to celebrate. Surprised?
Motivating Employees To Win, Grow, Evolve
Raj Gavurla
by Raj Gavurla
As an organization what do you do to motivate employees to win, grow, and evolve? This isn’t management motivating employees or employees motivating management. There should be three categories:
1. Motivation for project work to win, grow, evolve
2. Motivation to run the organization to win, grow, evolve
3. Motivation for clients to win, grow, evolve
When employees regardless of position have a customized metric panel (view) based on their position it is easier for them to be motivated to win, grow, and evolve. This metric panel changes only when a better input or idea is presented.
Do we have to give employees the same benefits as the founders?
Question: We’re a California startup with a few founders working full-time right now. We are planning on expanding. Do we have to offer any future full-time employees the same benefits as we set up for ourselves? Do they need to have the same healthcare plan fully paid by the company? Do they need to receive the same retirement plan contributions paid by the company? Thanks!
Brian Hassan
Answer by Brian Hassan, Managing Director of BayPoint Benefits
How do I deal with a demanding & uncooperative engineer when my whole startup depends on him?
Naomi Kokubo
by Naomi Kokubo, Editor of Founders Space
Good question for Founders Space.
I know this is difficult. I’ve been there before. But you have to take action now. First off, no one is indispensable. You may believe you can’t live without this engineer, but you can. You’ll be able to find someone else who can learn the code and get the job done. My advice is to clearly let this engineer know that his behavior is unacceptable, and he either needs to work with you or you’ll have to find someone to replace him.
Do you have any templates for employment and consulting agreements?
Naomi Kokubo
by Naomi Kokubo, Editor of Founders Space
Below is a link to the Employment & Consultant Documents provided by Orrick. Keep in mind, these do not replace having a good attorney, but they do provide a good starting point.
Go see Employment & Consultant Docs
Employee Offer Letter
What’s the best way to find a CTO for my startup?
Naomi Kokubo
by Naomi Kokubo, Editor of Founders Space
The best way is to tap into your network of friends and colleagues. It’s always better to start with someone you know well and have worked with in the past. That said, all too often you know people with similar backgrounds and skill sets to your own. So how do you find a co-founder with a complimentary skill set?
Our Changing Workplace
Fanny Tham
by Fanny Tham of CreativePeople@Work
There is no better time to say that we are in an Era of Change. From the comeback of Apple in the 90s to the evolution of Internet led by Facebook, our World is rapidly transforming. Ever year we witness changes that make impacts on the way we live, play and work. Here are ways on how our work will change in the next couple of years. In fact, for some, it already has.
1) Information Technology is still King
Are You a Great Leader or a Competent Manager?
Burton Goldfield
by Burton M. Goldfield, CEO of TriNet
The difference lies in the ability to inspire employees, especially during difficult times.
In an ideal world, the titles “manager” and “leader” would go hand in hand, but that’s not always the case. It’s no surprise that productivity and employee morale rely heavily on a manager’s leadership style. One wrong move (or even the perception of being wrong), may cause employees to lose trust in their managers’ abilities to guide their careers. The question is, what’s the difference between a competent manager and a truly great leader? It’s the ability to inspire employees during difficult times.
Do I need to have an engineer as a cofounder to launch a Web 2.0 startup?
Naomi Kokubo
by Naomi Kokubo, editor of Founders Space
No. But it’s a lot harder to succeed without one. If your website relies on key technology, it’s really difficult to get off the ground unless one of the founders understands the technology inside and out. If you’re relying on a contractor, employee or friend to help you out, it may wind up halfway done. The reason is that the effort required to build and launch a successful Web 2.0 startup is so great that no one but a dedicated founder typically lives up to the challenge.
Can entrepreneurs be made?
Naomi Kokubo
by Naomi Kokubo, editor of Founders Space
This is an age-old question. Nearly every VC out there has an opinion, and unfortunately, most of them are misguided. The majority of VCs believe you are born with it. But in reality, most people learn to become entrepreneurs.
In fact, all evidence points to the fact that you can make a successful entrepreneur with the right mix of education and guidance, and they do not come in any single mold. Graduating from Stanford and being under 20 is no guarantee of success. In fact, first-time entrepreneurs who are 40+ often have a higher rate of success, which makes sense, since they have a wealth of experience to draw upon.
Building the Right Tech Team
Nicole Valentine
by Nicole Valentine, VP of Prod/Technology at Figment.com
You have the idea. You have the vision. Now, you need the team to help you realize your goals. We all know that hiring the right people is necessary in any organization, but it’s even more crucial in a small technology startup. The hiring decisions you make will have long reaching effect on your business. This core team will not only shape the future success of your organization, but the culture of your company as well.
Your First Engineers are Your Engine Makers
Employee Retention: How to keep the keepers and maintain optimal turnover levels
Burton Goldfield
by Burton M. Goldfield, CEO of TriNet
Introduction:
For many of the world’s most admired companies, the ability to attract and retain talented employees was the single-most reliable predictor of excellence, according to Fortune magazine. And it may be the single-most important challenge of this decade. Why care about retention? Retention is a business issue and losing one or two key people can have a significant impact on your longevity or profitability. In the following white paper, we outline how managers can determine whom to keep, how to treat those who leave and what to do to retain those necessary to the organization.
Is it legal for my company to pay its employees without giving a pay stub along with the check?
Ethan Stone
by Ethan Stone, Stone Business Law
First, a quick but important clarification: I’m not your lawyer and this answer doesn’t establish a lawyer-client relationship. I’m giving a generic answer to a generic question to educate the users of this site. The information below is general in nature and should not be understood as a substitute for personal legal advice.
The answer to this question depends on state law. In California, and many other states, the answer is no.
California Law requires an “itemized statement” including the following:
- gross wages earned
Winning Mental Pyramid
Raj Gavurla
by Raj Gavurla of LiiiVEN, Inc.
Practical Leading Edge Research and Process Entrepreneurs
Use To Win, Grow, Evolve
Fig. 1 Winning Mental Pyramid
inner-motivation.com
Here’s how it works:
Relationship Between Motivation and Inspiration
Motivation has a relationship with inspiration and your motivation controls your attitude.
This is the top line in your business or what is your motivation?
Attitude
Your attitude controls your mindset. It’s important to have a positive attitude.
How do I surive with truly the next great idea?
QUESTION:
So let’s say I have an amazing idea for disruptive and game changing product. Let’s say it could be bigger than Facebook.
How do I bring the idea to market without being crushed by competitors, investors, and other capable people who are more opportunistic than honorable?
What steps can I take to ensure that I retain control of an idea that may be the next big thing?
ANSWER:
Antone Johnson
Advancements In Humanness, Medicine & Technology
Raj Gavurla
by Raj Gavurla of LiiiVEN, Inc.
To raise the standard of work and living it’s clear to me there must be continual advancements in humanness, medicine, and technology. What is your action plan to win, make more money, and grow to make lives better?
We need to create more jobs to stimulate the economy. This means increasing intelligence through education, access, transparency, and the assembling of delivery models to reach people faster and on demand. By striving for talent acquisition and winning their services through advancements in humanness we’ll not only lead an economic rise, our families and youth will grow stronger locally and abroad. Entrepreneurship and government (the people) investing in research in addition to collaboration with other countries can excite people towards a better living, if you will.
Finding Sharpshooters & Building an Amazing Team
Eran Eyal
by Eran Eyal of Springleap.com and Evly.com
One of the key learnings I have had as a founder is finding incredible talent and setting them up for success rather than failure.
There are 2 types of mentalities regarding giving colleagues opportunity:
1. Give people opportunity and let them sink or swim
2. Give people opportunity they are suited to when they can handle it
The former is a recipe for failure.
I have seen this, time and time again, in startups and even established businesses that display a high burn-out rate amongst the employees or a high dropout rate.
What’s the best way to find a biz dev person who will work on commission?
QUESTION:
I started a web design and internet marketing firm in 2009 and have come to the point where I would like to grow the business so I decided that I need to hire someone whose job would be to acquire new clients. What are the best steps to find and get this person on board with the fact that I would like them to be paid on performance/commission, since I can’t afford to pay a salary yet?
ANSWER:
Naomi Kokubo
by Naomi Kokubo, Cofounder of Founders Space
What’s a typical vesting schedule for employee stock options?
QUESTION:
It is my understanding that the standard vesting period for the senior-level people is 4 years. During that 4 year vesting period, is it normal to do a 100% vest after the fourth year or are some investors ok with cliff vesting?
ANSWER:
Naomi Kokubo
by Naomi Kokubo, Cofounder of Founders Space
Here is a typical four-year stock option vesting schedule for employees:
- In startups, most employees have their shares vest in exactly the same way, whether they are senior executives or entry level employees.
Where can I find good website designers/developers?
QUESTION:
Where can I find good website designers/developers?
ANSWER:
Naomi Kokubo
by Naomi Kokubo, Cofounder of Founders Space
This is a question we get all the time. Find a great designer and/or developer for Web 2.0 sites isn’t easy. There are lots of good people out there, but they tend to be either too expensive or already employed. And if you want someone to work for equity or on the cheap, it can be difficult.
How do I find good tech partners for my online project?
QUESTION:
I am looking to start a company to develop a technology to be used online — but I’m not a tech whiz. My education and experience are on the business side. Hence, I don’t have the first idea what type of talent I’m looking to partner with.
ANSWER:
Naomi Kokubo
by Naomi Kokubo, Cofounder of Founders Space
Most great tech companies are started by techies — meaning they understand the technology inside and out. Usually the techie is partnered with a good business guy or gal. In today’s world, it pays to have one member of your team be highly technical.
Who can I trust with my ideas?
QUESTION:
Who can or should you trust? I have an idea that excites me: one that seems to have meat on the bone and I’ll need a great team to act on. But I’m having a hard time finding the balance of whom I can trust to tell this idea to. Some people are evangelists and rally incredible support for their visions. Others hold their cards close to their chests. I want to tell everyone, but don’t want someone to take it and run.
ANSWER:
Naomi Kokubo
by Naomi Kokubo, Cofounder of Founders Space
How much equity should I give to employees & consultants?
QUESTION:
Hi everyone – great site! I’d love some insight regarding compensating different employees with equity. I have had a web-based product in beta for just over a year. We are completely bootstrap (i.e. no outside funding). We are an LLC, though plan to become an Inc. at the end of the year.
I have 3 different scenarios for potential equity:
- I recently took on an operations person at a small salary. He is interested in working for equity. I want to incentivize him, but am not sure equity makes sense without real metrics. There is some room for him to lead up sales efforts so I was thinking about linking equity to sales performance.
What should I be budgeting for healthcare benefits for my employees?
QUESTION:
What should I be budgeting for healthcare benefits for my employees since we will be hiring soon/recently received funding?
ANSWER:
Brian Hassan
by Brian Hassan, Managing Director, BayPoint Benefits
If you define full benefits like most Bay Area technology companies (and startups) as:
(1) Medical
(2) Dental
(3) Vision
(4) Group Life ($50,000)
(5) Short Term Disability
(6) Long Term Disability
Then here is my answer:
Typically when VCs ask me for this “number” they do not have an idea on how the employee demographic will be structured. Meaning, some employees will have spouses, some kids, while others are just single.
How do I get face-to-face meetings with decision-makers in my target market?
QUESTION:
My startup has a developed a digital solution that monetizes the social media content of branded individuals (pro athletes, entertainers, etc). We’ve targeted the sports market and have a proof of concept, partners in the sports space with access to top athletes and a team and a board of directors.
We’re currently pitching to angels to get the funding for a working prototype, but I’m also trying to get a client in the sports space. I want to pitch to advertisers. Especially those who spend money in the virtual world and social networking sports arenas. But i don’t know who to go to, marketers like Weiden+Kennedy or sports companies directly, like NIKE.
Will a project internship limit my pool of students to choose from?
QUESTION:
I have been reading blogs from YouTern.com about the advantages for students to have an internship at a startup company (working directly with the owners). And, I have also read that using interns for my startup can be advantageous to my company (fresh ideas and eagerness).
With limited time I would like to offer an intern(s) “project” internship(s) but have learned that most Career Centers at Universities will not allow college credits or support the Project internship.
How much equity should I give a VP?
QUESTION:
We’re looking at bringing on a VP of sales, and I was thinking about providing a 0.75 – 1% equity stake with a 3 year vesting period. Is this about right? We’re pre-funding right now.
ANSWER:
Naomi Kokubo
by Naomi Kokubo, Cofounder of Founders Space
Based on what I’ve seen in the past, 0.5% to 3% is typical for an experienced VP post Series A funding. Pre-funding it’s usually much higher. But it depends on what you’re paying this person. If you’re giving a full salary, then less equity is fine. Most startups pre-funding can’t afford much of a salary, so they usually compensate with higher equity. Also, the employee will be taking significant dilution upon funding, so you want their equity to be enough to motivate them both pre and post funding.
What if a laid-off employee refuses to return his laptop to the company?
QUESTION:
What should I do if a laid-off employee won’t return his laptop to the company? It has confidential information on it, and it’s a company laptop.
ANSWER:
Ethan Stone
by Ethan Stone, Stone Business Law
First, a quick but important clarification: I’m not your lawyer and this answer doesn’t establish a lawyer-client relationship. I’m giving a generic answer to a generic question to educate the users of this site. The information below is general in nature and should not be understood as a substitute for personal legal advice.
