“Don't worry Wilson, I'll do all the paddling. You just hang on.” Chuck Noland
I spent a large amount of time last night talking with a good friend who’s in the process of starting a new business. It’s a bold move in a shaky economy but he’s highly committed and way past the point of no return. Everything is coming together, sort of, and he should up and running before the end of the year.
His angst is he has played “you bet your future” with this venture and although surrounded with really good people that he’s hand picked the realization that he’s, to use his phrase, “on the island by myself” is overwhelming him. The fact that everyone else is one bad mood away from waltzing away and leaving him stranded at this critical stage is eating at him right now.
It’s a tough spot. On one hand he wants to be the one in control, especially since it’s his money. On the other he wants people to be as committed as he is. I suggested he offer a piece of the action to those most key to his success. His counter was that offering a percentage of the business is fine, but if it’s merely “given” then there’s still no incentive to hang in - nothing in, nothing out, net zero.
OK, so make it be earned based upon benchmarks of success.
His counter, that’s good too but how does that help assure they’ll stay during this brutal start-up process.
OK, how about cash incentives for all the current effort.
Counter: “I’m doing this out of my own pocket, there’s just not a lot of extra cash”
Hmm….so ultimately this comes down to faith, guts and character. If his hand picked key people believe in his vision, know that he’s risking a large piece of life and wealth and trust that they will, in fact, realize pieces of the success of the business then there’s a good chance they’ll play the key roles he’s depending on both now and later.
If some (or all) of those elements are missing then all bets are off and my friend had better start figuring out some back up plans still knowing that new people will bring the same uncertainty and heartburn with them.
Funny, being in control a lot of times is everything but.
I spent a large amount of time last night talking with a good friend who’s in the process of starting a new business. It’s a bold move in a shaky economy but he’s highly committed and way past the point of no return. Everything is coming together, sort of, and he should up and running before the end of the year.
His angst is he has played “you bet your future” with this venture and although surrounded with really good people that he’s hand picked the realization that he’s, to use his phrase, “on the island by myself” is overwhelming him. The fact that everyone else is one bad mood away from waltzing away and leaving him stranded at this critical stage is eating at him right now.
It’s a tough spot. On one hand he wants to be the one in control, especially since it’s his money. On the other he wants people to be as committed as he is. I suggested he offer a piece of the action to those most key to his success. His counter was that offering a percentage of the business is fine, but if it’s merely “given” then there’s still no incentive to hang in - nothing in, nothing out, net zero.
OK, so make it be earned based upon benchmarks of success.
His counter, that’s good too but how does that help assure they’ll stay during this brutal start-up process.
OK, how about cash incentives for all the current effort.
Counter: “I’m doing this out of my own pocket, there’s just not a lot of extra cash”
Hmm….so ultimately this comes down to faith, guts and character. If his hand picked key people believe in his vision, know that he’s risking a large piece of life and wealth and trust that they will, in fact, realize pieces of the success of the business then there’s a good chance they’ll play the key roles he’s depending on both now and later.
If some (or all) of those elements are missing then all bets are off and my friend had better start figuring out some back up plans still knowing that new people will bring the same uncertainty and heartburn with them.
Funny, being in control a lot of times is everything but.
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