I was recently asked for five points based on my experience starting a company that “every entrepreneur should know.” These are the five I came up with:
- Don’t raise too much too early. Too much professional money into a startup that’s not ready for it will kill the company.
- If you’re having a hard time fundraising, think hard about the negative feedback. Investors are on your side – they want to build a huge success, too. Let them help you avoid wasting your time.
- Building a company is as much about human psychology as it is about your technology.
- Recruiting is both your hardest and most important task as a startup founder.
- Build relationships. Don’t optimize on a transaction-by-transaction basis. Careers are long and people have good memories. Ask whether negotiating hard on that deal term now will really help you later.
There are lots of things “every entrepreneur should know,” and of the few lessons I’ve experienced, these are just the first couple that came to mind.