On Starting Up: Keep it Flexible
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On Starting Up: Keep it Flexible

Don't overestimate anyone's contribution in the early stages of a startup.
On Starting Up: Keep it Flexible

Founders always fall into the dilemma of choosing equity and control. One of the biggest mistakes founders make is to fix the early equity without making room for changes down the road.

The assumption that the relationship and passion will last for the long term will become a threat in the future. This is because there are likely adverse events that will alter the structure of the team.

As an entrepreneur, you have to beware of this trap because what you do during the early stage of a startup are very different in the later stages. Not everyone’s skills will remain as valuable to the startup as they are at the moment. Don’t overestimate the value of anyone in the early stages, because in doing so, you’ll be allocating more equity to a less-deserving founder, which will cause friction among the founders eventually.