Founders Institute Mentorship session with Chris J Snook on tough and costly lessons learned over his 13 year career with regards to Co-Founders, Hiring and Firing.

1. 3.5 ($million)
lessons related
to Co-
Founders/Hiring
/Firing
Mentor Session Denver 2013

2. Co-Founders/Hiring/Firing
“People are your Greatest Asset and Greatest Liability…
Managing the people balance sheet is critical to a
startup’s success!”~CJS

3. BIG MISTAKE #1
Mistake 1: Starting a business with someone you date
(sleep with but aren’t committed to) and continuing to
invest in the dumpy thing long after its been DOA.
Time Cost of the Lesson: 2000-2003
$ Cost of the Lesson $500k in personal debt
(Recaptured after 2 long years by late 2005)

4. BIG MISTAKE #2
Mistake 2: Starting a business with someone who
hasn’t had their teeth kicked in because they are the
only one available at the time and you get impatient
(untested people suck).
Time Cost of the Lesson: 2006-2008
$ Cost of the Lesson $2.7m and a Personal BK due to
improper entity structure

5. BIG MISTAKE #3
Mistake 3: Reviving a Co-Founder who has Quit on you
in the past because you believe they had a bad day and
it’s the right thing to do for them..(Quitters suck and
will hurt you and betray you in the long run)
Time Cost of the Lesson: 2010-2011
$ Cost of the Lesson $250k in cleanup, tax liabilities,
settlements, and frivolous legal actions

6. Mistake 3.5: Not trusting your gut and or “forcing” a deal
BIG MISTAKE #3.5

7. Templated Resource Contracts for Founders
1) Term Sheet Doc for Interim President
https://docs.google.com/file/d/0B89Bfouju5NoN0xycG5wbDJvbW8/edit?usp=sharing
2) Term Sheet Doc for Interim CEO
https://docs.google.com/file/d/0B89Bfouju5NoWWRwR0NnVDJ0eFE/edit?usp=sharing
Source: Stephen Meade BigBamboo LLC
I found the first non-founder hire…How Should I engage/compensate them?

8. Wise Actions To Live By…
• Hire Slow FIRE QUICK
• Document everything and have a Employee playbook!
• Setup with a payroll service and don’t miss payroll tax
• Put everyone on 4 year vesting schedules with 1 year cliff
• Partner with people who bring different skills than you
• Make employment contracts “At-Will” (rare exceptions)
• Build a solid Board of Directors-Hire Good CPA-Lawyers
• Manage the system/job description first-then the person
• Have tough Founder equity split talks early

9. Know the Game You’re Playing
View the Speech http://youtu.be/oSDhhZtRwFU

10. FIND ME
@chrisjsnook
And www.launchha.us
www.chrisjsnook.com
Slides available at
www.slideshare.net/chrisjsnook