Bygrave & Zacharakis, Entrepreneurship, New York: Wiley. © Chapter 6 Building the Founding Team

Bygrave & Zacharakis, Entrepreneurship, New York: Wiley. © Size of the company Revenue derived

Bygrave & Zacharakis, Entrepreneurship, New York: Wiley. © Advantages of having a team for a start-up

Bygrave & Zacharakis, Entrepreneurship, New York: Wiley. © Things to keep in mind when creating a start-up Evaluate your skills Use your strengths Ask for feedback of your actions

Bygrave & Zacharakis, Entrepreneurship, New York: Wiley. © Building a powerful team Create a staffing plan Find people to fill positions Your personal network Your advisors’ Network Your extended Network  Friends  Family  Professors  Alums

Bygrave & Zacharakis, Entrepreneurship, New York: Wiley. © Do Nots of double employment Do not use your employer’s resources Do not expropriate intellectual property from your current employer Do not solicit your employer’s customers until you quit the job Do not conceal the fact that you are founding your own venture

Bygrave & Zacharakis, Entrepreneurship, New York: Wiley. © Compensation nameAdvantagesDisadvantages Founder SharesAttracts co-foundersDilutes owner’s equity Option poolTies employees’ goals to those of the company Employees may leave the company if the price falls Restricted stockVested over time, expensed at current share price Expensed at current price Stock appreciation rightsLow cost to the companyDilutes owner’s equity Phantom stockEmployees do not receive equity Needs cash to be exercised Types of Compensation

Bygrave & Zacharakis, Entrepreneurship, New York: Wiley. © External Team Members Virtual team Outside Investors LawyersAccountants Board of Advisors Board of Directors

Bygrave & Zacharakis, Entrepreneurship, New York: Wiley. © Problems that new venture teams face Burn-out Interpersonal Conflicts Family Pressure