![]() (Shortform note: Even if you provide your mentor with the information Bet-David recommends, they still might not want to connect you to investors unless you give them something in return. Knowing this shows them you’re serious and worthy of being connected to investors. Explain to them why you must raise money, how you’ll use it, if you want investor input, why you’re worth investing in, and if you plan to eventually sell the business. The best way to gain access to funding is through mentors with connections, claims Bet-David. ![]() If you still wouldn’t be happy ceding control, ask yourself how urgent the investment is and if you can afford to continue looking for a less controlling investor.) If you agree on major points, then giving up some power won’t entirely transform your company in a way you’d dislike. To help determine whether to accept an investment from a party that wants control over the company, ask yourself if you’d be okay ceding control if you and the investor agreed on major decisions about the company. (Shortform note: Bet-David asserts that often when you accept outside funding, you cede a degree of control to the investor. Bet-David believes outside funding gives your company a huge security boost and recommends this route. Conversely, funding yourself means maintaining control but risking running out of money. How you do this depends on the degree of control you want to maintain: The more money you raise from outside investors who then gain a stake in your business, the more control you sacrifice. To grow, first, think about how to raise funds, counsels Bet-David. According to Bet-David, there are seven parts to this growth process: Part 1: Raise Funds With these pieces in place, let’s now move on to growing your company. In the first three steps, you learned about yourself, developed the ability to solve problems, and learned how to create a winning team. By teaching your subordinates to demonstrate care and honesty toward each other during debate, you encourage them to improve each other’s ideas without draining anyone’s emotional energy.) The Fourth Step: Grow Your Business the Right Way When it comes to inter-employee relationships, Scott believes employees should practice radical candor in a healthy debate culture. Scott breaks radical candor into two components: showing care for the employee and showing a willingness to have difficult conversations that improve their work. (Shortform note: Kim Scott’s concept of radical candor is arguably a more nuanced look at Bet-David’s constructive honesty, which Scott applies mostly to supervisor-employee relationships. Tell your team to create healthy conflict by challenging each other to improve based on the company’s principles. If those values and methods are undesirable (or even illegal), then you’ve lost control of the culture and possibly the company.)Īdditionally, encourage constructive honesty by communicating your expectations and whether employees are meeting them, writes Bet-David. If you don’t, the values and methods employees currently use will become the culture. Christensen agrees with Bet-David that it’s critical to enforce your cultural values. (Shortform note: In How Will You Measure Your Life?, Clayton M. Behaving in accordance with your principles lends you credibility in your team’s eyes. ![]() This is because when employees feel like they’re part of a culture and community, they’re more likely to stay.)Īccording to Bet-David, you can build culture by creating a set of company principles (for instance, honesty and diversity) and acting on them (for example, by leading CEO Q&A sessions and establishing a diversity, equity, and inclusion committee). However, others see establishing a strong culture as preceding the successful retention of employees. (Shortform note: In his book, Bet-David lists culture as the third step of creating a winning team, after retaining employees. Culture is critical because for employees to put in their best effort, they must identify with the company and its values. ![]() Once you’ve hired the right people and incentivized them to stay, build a company culture, says Bet-David. He argues that when employees-Thiel focuses in particular on CEOs-work for equity, they shift their thinking from short-term to long-term, which leads to healthy, sustained growth for the company.) Task 3: Build the Right Culture (Shortform note: In Zero to One, Peter Thiel provides additional context for why equity is a good form of compensation. Bet-David thinks giving employees the opportunity to earn equity is the best form of compensation because they’ll feel they have a stake in the success of the company and will work harder to make it succeed-a win-win. ![]()
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