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Fifty percent of something is better than one hundred percent of nothing
This famous quote by the renowned financier Suze Orman holds particular significance for early-stage entrepreneurs. If you find yourself leading an early-stage company, the instinct to safeguard your equity and maintain absolute control is common. Don’t stress about it. Often, early-stage founders are driven by the desire to retain complete authority over the company, even in the absence of a product or revenues. This is often explained by the fact that you consider this your baby. As a matter of fact, as this is your baby, you will be able to protect your company better if you attract the right talent via equity and other perks.
This inclination often arises from a founder’s unwavering belief that they possess the world’s best idea and a determination to guard the shares at any cost, keeping the “secret sauce” under wraps and not opening up to anybody. Unfortunately, this approach can limit the company’s operational launch and hinder founders from securing the necessary capital and skills to translate the “secret sauce” into a viable venture.
Instead, consider being open to relinquishing equity to individuals with skills you may lack, including key team members who will stick with you even more if you provide them with the right financial incentives to be part of the long-term plan. In terms of…
