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

2. Bygrave & Zacharakis, 2007. Entrepreneurship, New York: Wiley. ©
Size of the company
Revenue
derived
Bygrave & Zacharakis, Entrepreneurship, New York: Wiley. ©

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

4. 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. ©

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

6. 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. ©

7. Bygrave & Zacharakis, 2007. Entrepreneurship, New York: Wiley. ©
Types of Compensation
Compensation name
Advantages
Disadvantages
Founder Shares
Attracts co-founders
Dilutes owner’s equity
Option pool
Ties employees’ goals to those of the company
Employees may leave the company if the price falls
Restricted stock
Vested over time, expensed at current share price
Expensed at current price
Stock appreciation rights
Low cost to the company
Phantom stock
Employees do not receive equity
Needs cash to be exercised
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8. Bygrave & Zacharakis, 2007. Entrepreneurship, New York: Wiley. ©
External Team Members
Bygrave & Zacharakis, Entrepreneurship, New York: Wiley. ©

9. Problems that new venture teams face
Bygrave & Zacharakis, Entrepreneurship, New York: Wiley. ©