Management Tip of the Day: Position Your Start-Up for the Long Term

Are you having trouble viewing this email? If so, click here to see it in a web browser. HOME   |   TIPS   |   BLOGS   |   THE MAGAZINE   |   BOOKS   |   STORE RSS   |   Mobile OCTOBER 18, 2012 Position Your Start-Up for the Long Term When starting a new business, there's a strong temptation to make decisions for the short term. But you need to anticipate the long-term challenges. There are three things it's critical to get right: Co-founders. The natural inclination is to co-found with family or friends. But these relationships can be fraught. Plus you're more likely to have similar perspectives. Look for partners who bring complementary skills and assets. Roles. Most founders want a C-level title. After all, they were there from the start. But choose roles that reflect the actual work each founder will do, not the fancy title he wants to show off. Rewards. One of the biggest questions for start-ups is how to split equity ownership. A handshake on 50/50 will not do, because almost all new companies will have a major change in strategy or founder involvement. Negotiate an arrangement that can change when circumstances do. Today's Management Tip was adapted from "Three Pitfalls Startup Founders Must Avoid" by Noam Wasserman. Watch the video and join the discussion » Share Today's Tip: FEATURED PRODUCT Working Capital Simulation: Managing Growth Online Tools Often managers, especially entrepreneurs, focus excessively on the income statement and, in the process, ignore the balance sheet and statement of cash flows. Acting as the CEO of a small company called Sunflower Nutraceuticals, this single-player simulation lets you practice investing in growth and cash-flow improvement opportunities in three phases over 10 simulated years. Each opportunity has a unique financial profile and you must analyze effects on working capital. ADVERTISEMENT Follow the Tip: PREVIOUS TIPS Start Your New Job the Right Way Make Progress on That Long-Term Project Stop Sabotaging Yourself Money Isn't the Only Motivator for Top Talent Presentation Coming? Know These Things About Your Audience Break the Cycle of Responsiveness Imprecision Can Aid Decision-Making Become a More Valuable Employee Starting a Business? Skip the Plan Make Sure You're Solving the Right Problem All Previous Tips BEST SELLERS HBR's 10 Must Reads: The Essentials HBR's 10 Must Reads Library Set Guide to Persuasive Presentations Guide to Better Business Writing Guide to Getting the Right Work Done Introducing Mobile ManageMentor Powered by the proven content of Harvard ManageMentor™ iTunes >> Android >> UNSUBSCRIBE   |   UPDATE YOUR PROFILE   |   MORE EMAIL NEWSLETTERS   |   PRIVACY POLICY Was this email forwarded to you? If so, sign up to start receiving your own copy. ABOUT THIS MAILING LIST You have received this message because you subscribed to the "Management Tip of the Day" email newsletter from Harvard Business Review. If at any point you wish to remove yourself from this list, change your email address, or sign up for other email newsletters and alerts, please visit the Harvard Business Review Email Newsletter Preference Center. OPT OUT If you do not wish to receive any email messages from Harvard Business Review, click here. ADVERTISE WITH HBR This enewsletter is read by thousands of decision makers every day. Learn more about connecting your brand with this audience. Copyright © 2012 Harvard Business School Publishing, an affiliate of Harvard Business School. All rights reserved. Harvard Business Publishing | 60 Harvard Way | Boston, MA 02163 Customer Service: 800-545-7685 (+1-617-783-7600 outside the U.S. and Canada)