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Solo founders are rare for a reason. If you just hire people to do a job, why would the most talented people work for you? Doesn't make much sense in most cases
by bachback 13y ago
Solo founders are rare for a reason. If you just hire people to do a job, why would the most talented people work for you? Doesn't make much sense in most cases if the founder has not already a lot of capital. I would say increasing the odds of success is much more valuable than getting a higher payout in the success case (expected value = chance * payout).
On the other hand, it is hard to find the people who have very similar goals.
- adii 13y agoTalented people are also attracted to working on something they're passionate about and having the freedom to execute on that passion. :) And not all businesses needs to be set up purely as a vehicle to an exit. Many businesses can instead operate as "lifestyle businesses" and earn great revenues / profits for years to come.
- deleted 13y ago[deleted]
- bachback 13y agoI don't think so. It really depends on the leverage that the sole founder has. If he can bootstrap and has very high Return on Equity, he doesn't need capital. I think the point is really that there is very little reason not to give early employees a good chunk of capital, because it is requirement to work hard. The author of the article bootstrapped a business, but that's not necessarily the same as a high growth startup.