This document discusses the importance of people in startups and how to manage them effectively. It notes that people are the biggest asset of any startup. It then discusses some of the challenges in hiring the right people, such as selling an unknown company, meeting salary expectations, and retaining people with lower cash compensation but higher equity stakes. The document provides guidance on benchmark qualities to look for in candidates, how to build a strong core team through communication and ensuring alignment on vision, and some golden rules for managing a core team like an open and transparent culture. It stresses that each core team member should be a leader that communicates well and builds their own team. Overall, the document emphasizes that people are critical to a successful startup.

1. People are the biggest asset and strength
of any start up.
And
Things that entrepreneur should do and
should not do while dealing with this
asset.

2. People
Every start up starts with the like minded people coming together with
a dream of achieving the common goal.
But as the company grows, it starts falling short of people and it’s a
challenge to find such people.
Its an art and skill to get such fire in the belly people in shortest
possible time at lowest possible cost.
People are the biggest and perhaps only asset of every start up which
is irreplaceable.

3. Challenges of getting right kind of people.
Its hard to sell
the company
which is
completely
unknown
Its very
difficult to
match the
salary
expectations
The risk
perception in
the minds of
people is very
high
Perceived
psychological
factors play
havoc in their
minds
It’s a
challenge to
retain people
with lower
cash and
higher
ESOP’s

4. Benchmark Qualities while hiring people.
Person
should be
willing to work
in
unstructured
environment.
Person is
willing to look
at long term
career by
accepting
Esop’s.
He is by
nature very
flexible and
adaptable
and a team
player.
He has an
attitude of
being a out of
box thinker.
He is willing
to or used to
doing
multitasking

5. How would you create core team of your start up ?
One needs to answer following questions before hiring your core team
• What should be the level of experience ?
• Why does he want to come to a start up ? Is it a stressed decision ?
• Does he really believe in your idea and can share common vision ?
• Is he a team player ?
• Is he willing to put some skin in the game by opting for ESOP’s
• Is he willing to look outside his domain and experiment ?
While answers to these questions are not easy to find out but worth
spending more days before hiring.
Intense communication sessions are must to create a cohesive group of
core team. They should almost reach to the stage of predictability of
other team member’s expectation and reaction.
They must believe in a common mission and vision of entrepreneur.

6. Golden rules while dealing with your core team.
Every start up has a thin number of people and they work like a close knit
family. There are certain golden rules which should be followed by an
entrepreneur during the life cycle.
• Always have a open communication with the team.
• Always share the bad news first to the team.
• Never give a conflicting signal to different group of people.
• Be fair while fixing the structure and remuneration pyramid
• As the organization grows and multi tasking is reduced, then create a
balanced departmental structure.
• Create a participative management style from early on so that team
feels involvement.
• Be transparent with the team and they will stand by with you in difficult
times.
• Lead from the front by example.
• Carrying a wrong baggage will take the company back by few months
and time is precious.

7. Does each core team player should be a leader by example
and vision??.
• Every start up is built from ground zero and the castle need to be built
on the solid foundation.
• Each of the core team player should be a leader who not only is
knowledgeable but also a good communicator and team builder.
• He needs to create a sound team B and C in his department who are
best in terms of knowledge but also become good communicator and
become extrovert.
• Information flow in a start up is very fast and informal and any wrong
or half communication by team would lead to confusion.
• Team leaders should learn to have vertical and horizontal discussions
at their level.

8. Road to successful start up is tough but
People create a successful start up so give
them their due respect.