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Because it's one of these sort of connections between nodes- every pair of people adds communication overhead.
Sam Altman
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Sam Altman
Age: 39
Born: 1985
Born: April 22
Entrepreneur
Chicago
Illinois
Samuel H. Altman
Samuel Altman
People
Adds
Pair
Pairs
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Communication
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Nodes
Every
Overhead
More quotes by Sam Altman
Every company has a rocky beginning.
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The most important thing is that there is clear reporting structure and everyone knows what it is.
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Another way of looking at this, is that the best companies are almost always mission oriented.
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... but the pendulum has swung way out of whack here. A bad idea is still bad, and the pivot happy world we're in today feels suboptimal.
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In the early stage of a startup, hiring senior people is usually a mistake. You just want people that get stuff done.
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I believe in fighting with investors to reduce the amount of equity they get and then being as generous as you possibly can with employees.
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When lack of structure fails, it fails all at once. What works totally fine from 0-20 employees, is disastrous at 30.
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The cost of getting an early hire wrong is really high.
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Ideas by themselves are not worth anything, only executing well is what creates value.
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It really is true that you become an average of the people you spend the most time with.
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In YC's case, the number one cause of early death for startups is cofounder blowups.
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You only get points when you make something the market wants. So if you work really hard on the wrong things, no one will care.
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A board member of mine used to say sales fix everything in a startup, and that is really true.
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Some day everyone will find out everyone else's comp, if it's all over the place, it will be a complete meltdown disaster
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AirBnB spent 5 months interviewing their first employee, before they hired someone and in their first year, they only hired 2 people.
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It's easy to move fast or be obsessed with quality, but the trick is you have to do both at a startup.
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... you want to be proud of how much you can get done with a small numbers of employees.
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If you don't need it yourself, and you're building something that someone else needs, realize you're at a big disadvantage.
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Whatever the founder cares about, whatever the founders think are the key goals, that's going to be what the whole company focusses on.
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You're saying no ninety-seven times out of a hundred, and most founders find they have to make a very conscious effort to do this.
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