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Ask HN: How much info should founders share with early stage employees?

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Re: Ask HN: How much info should founders share with early stage employees?

#11
post #5

I would share things that are true now, but be careful about sharing things that may happen in the future. For future partnerships, the real risk isn't that your competitors find out. The real risk is that the partnership falls through and your employees feel demoralized. So I think it's fine and good to share information about the discussions your currently having with bigger companies, but less of a good idea to pr…

> The real risk is that the partnership falls through and your employees feel demoralized.

Demoralized is one thing, but also if enough partnerships are falling through they might get the sense that you’re not a good business person. Which may also be an accurate take away that you as a leader don’t want to hear/realize about yourself.

Without having been the leader of a startup I’d say the best thing to do is treat yourself like anyone else in the team ie the expectation of equal sharing back and forth. Help the team help you find out what your strengths are and what your weaknesses are.

Don’t try to hide your weaknesses or hope to get better at it. Especially if trying to hide/improve weaknesses are taking away from showcasing strengths. Instead get your team to hire in people to fill your weaknesses and learn from them. Meanwhile, double down on your strengths and continue the transparency and working as a team member.

Re: Ask HN: How much info should founders share with early stage employees?

#13
Different perspective, more about individual enablement vs company risk:

- Share info that enables independent decision making and actions so your team can help recruit new teammates, sell to customers, choose designs, and at a personal level, make personal financial decisions. If not, you're hobbling your team, who are your main shot at success. Just be clear that info is internal.

- Level anything forward looking, good or bad. Relatively few people understand that good sales requires significant loss rates, what a slog fundraising typically is, etc, so when some big lead doesn't convert or a process takes awhile, bigger issue is avoiding unnecessary heartache & whiplash. So share progress good & bad, but always level it. Partnerships, key hires, leads, VCs, talks, releases: celebrate real wins and analyze losses, but it's a marathon, so don't pump people up too much on the barrage of things outside of your control. The sharing is mostly dependent on the experience of the individual receiver.

Re: Ask HN: How much info should founders share with early stage employees?

#14
The best way to ensure your employees wont be honest or transparent with you is to not be honest or transparent with them.

Or maybe to put it a bit more harshly: You're not important enough to be hiding details

Be open, honest, and realistic. Say what you hope will come to be as a result of your actions. Be clear when things aren't set in stone.

Be transparent so that they can all work towards the same goals. If you keep them in the dark, they wont have any intuition on how to take initiative. Let positive results pump them up.

Re: Ask HN: How much info should founders share with early stage employees?

#15
There are very few cases in which outsiders with power will act on “intelligence” from a 7 person startup. You are like the government of Palau — nobody cares what you’re doing — your problems are much bigger than getting your stuff cloned.

Re: Ask HN: How much info should founders share with early stage employees?

#16

Startups are largely a financial vehicle to shift value created by employees to founders and investors

Corporations as a whole are a financial vehicle to shift value created by employees to executives and investors.

Being an early stage employee in a startup with significant equity means betting that your employer will eventually grow and you'll be somebody receiving the value rather than somebody creating it. That's how you reach the upper class in a capitalist economy and startups have successfully accomplished that for many founders and early stage employees.

Re: Ask HN: How much info should founders share with early stage employees?

#17
Sharing the current state of things is good. It will be stressful (for everyone) at times but at 7 people, they're invested personally and professionally.

Sharing things that are in-progress is harder. I'd recommend attaching timelines and probabilities. Basically saying "this should happen in the next X days" and "we're trying this idea, it may not work but we'll know in roughly Y days."

There are two huge upsides to a small, tight team:

a) there are LOTS of decisions made every day in every area. If people know what else is going on, they should be able to make better decisions. aka "This doesn't make sense to do for one customer.. but if there are 4 others in the pipeline, it's way more compelling."

b) people with varying strengths and areas of focus will not have your blindspots and perspectives and will see/understand things that you don't. Lean into that and you'll get a better solution.

Background: I was employee ~25 at Twilio, launched Okta's API security product, and am currently employee ~20 at ngrok.

Re: Ask HN: How much info should founders share with early stage employees?

#18
You should share enough context that your employees have a good grasp of business goals and can shape and prioritize their own work to build value. You won't think of everything and you don't want to spend your time tracking all their work - they need to be able to make independent decisions that further your business.

Re: Ask HN: How much info should founders share with early stage employees?

#20

Everything. The missed opportunities of not sharing is way greater than any misuse of the information.

Perhaps. My experience has been that people didn’t want to hear the ups and downs. Bad sales month? People start fearing for their job. It will depend on your team, but remember not all employees are entrepreneurs. Sharing downs and struggles will cause personal stress for many of them. I think most companies are closed info by default, and after running a company in both modes, I understand why.
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