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Don’t worry about leaks. At this stage, nobody else cares about you. But what you should really worry about is risk appetite. Your employees will have differen
by ghiculescu 4y ago
Don’t worry about leaks. At this stage, nobody else cares about you.
But what you should really worry about is risk appetite. Your employees will have different appetite for risk to you. That’s why you’re a founder and they are not.
That’s neither good nor bad. It just is.
Be conscious if this when you share things. Even if you can control the message, different people will respond to events differently.
For example:
- You have 6 months of expenses worth of of cash in the bank, and you are spending 110% of MRR each month. Is that plenty of runway, or not much at all? The answer depends on risk appetite.
- You decide to bid on a contract that’s way beyond your current product’s feature set. If you win the pilot you’ll need to build a stack of features fast and might neglect other customers while you do. Is that exciting or awful? Depends who you ask.
- You turn down an acquisition offer. If you accepted, the other 6 folks could have each put a deposit on a nice house. But you believe you could be 10x bigger than the offer. Will everyone else share this belief or would they rather cash out? Depends on their… you guessed it.
- PragmaticPulp 4y ago> Don’t worry about leaks. At this stage, nobody else cares about you. Actually, it’s better to pick a level of transparency that can be maintained well beyond this stage and stick with it. If a company starts out fully transparent and then walks back the transparency later, employees will become suspicious. Much better to choose a sustainable level of transparency and demonstrate consistency over the years. Don’t play fast and loose early and then force yourself to overcorrect later.
- ghiculescu 4y agoOkay, I agree with that. My point was more that leaks are a minor issue relative the one I raised.