• K

Thoughts on interest alignment

Over the weekend, I was deliberating about stakeholder contribution and their business involvement. We liked some people because they have been long-time friends. We like some others because of having worked together in some capacity. Aside from that, we consistently interact with people whom we also consider to be potential investors, partners, prospective employees and interns. And I tried to pencil all of these down into a matrix to see where all the different stakeholders fit in.


Bottom-line:

  • The interests of all co-founders have to be fully aligned, but more than that, each person also needs to demonstrate competency

  • Opportunity costs are an important factor in aligning interest. Put it simply: If founders are in the venture as a 'hobby' or on a part-time basis, the venture probably isn't going to work out

  • Cheer-leaders, idea generators and business evangelists should not be paid, unless they are personally committed to and vested in the business, either in an executive or non-executive role.


Tags

Pinned

Sunday, October 23, 2022

Our lack of understanding in how different countries are being governed are rooted in bias, largely based on what we are familiar with...

Thursday, October 6, 2022

Whenever I approached the close of my financial modelling course, I always did a simple roll-call to call for feedback from everyone in...

Sunday, October 18, 2020

In 1990, a psychologist quoted in the New York Times reported that people “turn on the TV when they feel sad, lonely, upset or worried,...

Thursday, July 23, 2020

IB isn't just about getting through the gruelling late nights and delivering on the number crunching. It was also about the harsh and...

Saturday, July 4, 2020

There’s nothing you should regret in life - all the good things that you have today are a result of everything that has happened....

Wednesday, December 31, 2003

Learning, knowledge and staying up to date with the news and what's going on in the world is your own personal responsibility. The same...

Connect

  • My LinkedIn Page

More

Subscribe to receive updates

Thanks for subscribing!