Keeping the Sheep in the Corral

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A common problem among young start ups is "keeping the sheep in the corral". No, not the sheep on the right, but all the key players one needs to create a successful company--potential investors, board members, advisers, employees, among others.  This can be a real problem for founders, one that keeps them up and on their Blackberries day and night.

What can a founder do to keep all the key players in the game?  First, for investors, advisers and board members, remember the herd instinct.  If you sell a top VC, Angel or board member on your ideas, getting others is a lot easier.  The same goes for key employees.

Second, become close to the key players. Duh, sounds stupid, right?  But you would be amazed at the number of entrepreneurs who ignore this advice.  I ignore them as well.  Use the key players for advice and help in recruiting other people you need to be successful. Make sure that you know they are valued members of your team.

Finally, integrate the players.  People who feel they are part of a valuable team are much less likely to bail out early.  Hold meetings and dinners with your key players so they can network and get to know one another. Be sure that team members are well rewarded via generous ownership shares.   After all, from your perspective, a smaller share of of a large enterprise value is usually much better than a large share on a smaller one.