YC
Team and Execution with Sam Altman (How to Start a Startup 2014: Lecture 2)
@ Y Combinator
03/18/17
Takeaways
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Sam Altman
03/18/17
@ Y Combinator
Trust your instincts to identify fast-growing markets by observing what you and your peers are using, as younger individuals often have better insights into emerging trends than older generations.
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Sam Altman
03/18/17
@ Y Combinator
Dealing with burnout as a founder is challenging; you must keep going despite the difficulties, rely on your support network, and address the challenges to eventually feel better.
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Sam Altman
03/18/17
@ Y Combinator
Choosing a co-founder is one of the most critical decisions for your startup; treat it with the same importance as hiring and avoid picking someone randomly or without a strong history together.
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Sam Altman
03/18/17
@ Y Combinator
A good way to find a co-founder is through college or by working at a reputable company, as having a strong relationship with your co-founder is crucial for navigating tough times together.
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Sam Altman
03/18/17
@ Y Combinator
It's better to have no co-founder than a bad one; many successful startups have thrived with just the founders in the early stages, emphasizing the importance of careful selection.
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Sam Altman
03/18/17
@ Y Combinator
When hiring, prioritize finding the best people and be proud of how much you can accomplish with a small team, as having too many employees can lead to complexity and inefficiency.
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Sam Altman
03/18/17
@ Y Combinator
The cost of making a bad early hire is high; many startups never recover from a poor first hire, so take the time to ensure that new hires align with your company's culture and mission.
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Sam Altman
03/18/17
@ Y Combinator
Hiring should be your top priority when necessary, and you must be prepared for a lengthy recruitment process to attract the best talent, as they often have many options.
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Sam Altman
03/18/17
@ Y Combinator
Join a startup that is already a 'rocket ship'—a company that is gaining traction and success—because the best talent is drawn to ventures that are already proving to be successful. Good people will wait to join a startup until they see it's on a breakout trajectory.
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Sam Altman
03/18/17
@ Y Combinator
You should spend either zero or 25% of your time hiring; it's either not a priority or your biggest focus.
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Sam Altman
03/18/17
@ Y Combinator
Compromising and hiring someone mediocre will always lead to regret, especially in a startup where every hire sets the tone.
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Sam Altman
03/18/17
@ Y Combinator
Mediocre engineers do not build great companies; this is especially true in startups where every hire can impact the culture significantly.
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Sam Altman
03/18/17
@ Y Combinator
The best source for hiring is personal referrals from people you already know, as most successful tech companies have been built this way.
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Sam Altman
03/18/17
@ Y Combinator
Experience matters for some roles, but for early hires in a startup, aptitude and belief in the mission are often more important than experience.
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Sam Altman
03/18/17
@ Y Combinator
When hiring, I look for three things: are they smart, do they get things done, and do I want to spend time around them?
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Sam Altman
03/18/17
@ Y Combinator
It's better to work with someone on a quick project before hiring them, as this gives you a better sense of their capabilities than a traditional interview.
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Sam Altman
03/18/17
@ Y Combinator
Good communication skills correlate well with successful hires; if someone cannot communicate clearly, it can be a significant issue in a startup.
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Sam Altman
03/18/17
@ Y Combinator
Look for candidates who have a risk-taking attitude; those who are choosing between a stable job and a startup may not be the right fit.
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Sam Altman
03/18/17
@ Y Combinator
Founders should be generous with equity for early employees, as they are the ones who build the company over time.
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Sam Altman
03/18/17
@ Y Combinator
It's crucial to ensure employees feel valued and happy, as resentment can build if they feel treated unfairly over time.
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Sam Altman
03/18/17
@ Y Combinator
Firing people is one of the hardest parts of running a company, and first-time founders often wait too long to make these decisions. You need to fire employees quickly when they're not working out, as it's better for both the company and the employee, despite the pain it causes.
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Sam Altman
03/18/17
@ Y Combinator
It's crucial to let go of employees who create office politics or have a persistently negative attitude, as they can drag down the entire company.
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Sam Altman
03/18/17
@ Y Combinator
When an employee consistently makes poor decisions, it's painfully obvious to everyone, and that's when you need to take action.
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Sam Altman
03/18/17
@ Y Combinator
Co-founders should decide on the equity split early in their partnership, ideally soon after they start working together, and it should be near equal.
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Sam Altman
03/18/17
@ Y Combinator
If you don't establish vesting for co-founders, a fallout can lead to dead weight on your equity table, making it hard to attract investors.
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Sam Altman
03/18/17
@ Y Combinator
When issues arise between co-founders, it's important to address them early rather than letting them fester, as this can prevent larger problems later.
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Sam Altman
03/18/17
@ Y Combinator
In the early days of a startup, it's better to lose customers than to hire a sub-optimal employee, as the damage to the company can be significant.
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Sam Altman
03/18/17
@ Y Combinator
Remote teams can be problematic for startups, especially in the early days when communication and speed are critical.
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Sam Altman
03/18/17
@ Y Combinator
Execution is often the most critical part of starting a company, and founders must be prepared for a long grind focused on execution.
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Sam Altman
03/18/17
@ Y Combinator
The culture of a startup is modeled after the founders' actions; if you want a hardworking culture, you must demonstrate that commitment yourself.
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Sam Altman
03/18/17
@ Y Combinator
Founders must focus on a few key priorities each day and learn to say no to distractions to ensure effective execution.
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Sam Altman
03/18/17
@ Y Combinator
Good founders have a small number of overarching goals for the company that everyone knows and works towards, ensuring focus and alignment.
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Sam Altman
03/18/17
@ Y Combinator
Communication is essential for maintaining focus in a startup; even small breakdowns can lead to misalignment and confusion among team members. Momentum and growth are essential for a startup's survival, and you must always focus on maintaining them.
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Sam Altman
03/18/17
@ Y Combinator
You should have a weekly review meeting to track your metrics and ensure you're focused on growth.
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Sam Altman
03/18/17
@ Y Combinator
Getting distracted by PR without real results can lead to disaster; focus on actual growth instead.
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Sam Altman
03/18/17
@ Y Combinator
Remote co-founding teams can slow down execution significantly, making it harder to maintain momentum.
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Sam Altman
03/18/17
@ Y Combinator
Startups require extreme focus and dedication; you can't have many hobbies if you want to succeed.
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Sam Altman
03/18/17
@ Y Combinator
A small amount of extra work on the right things can lead to significant differences in startup success.
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Sam Altman
03/18/17
@ Y Combinator
The viral coefficient is crucial for growth; a slight increase can lead to exponential growth, while a slight decrease can cause failure.
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Sam Altman
03/18/17
@ Y Combinator
Execution speed is one of the biggest advantages startups have, and you need a relentless operating rhythm to succeed.
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Sam Altman
03/18/17
@ Y Combinator
You must balance moving fast with maintaining high quality; both are essential for startup success.
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Sam Altman
03/18/17
@ Y Combinator
Indecisiveness can kill a startup; successful founders have a bias towards action and get things done quickly.
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Sam Altman
03/18/17
@ Y Combinator
You can achieve significant goals by breaking them down into smaller, manageable tasks and tackling them incrementally.
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Sam Altman
03/18/17
@ Y Combinator
Establishing an operating rhythm early on helps maintain momentum by regularly shipping products and reviewing metrics.
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Sam Altman
03/18/17
@ Y Combinator
Don't let competitors' press coverage distract you; focus on improving your own product instead.
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Sam Altman
03/18/17
@ Y Combinator
The most feared competitor is one that focuses on improving their own business rather than worrying about you.