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Element 14. Commitment > Score Elevation Tactics

Score Elevation Tactics

If you need to bump this score higher, simply demonstrate maximum commitment. Your compensation and equity will be based upon full commitment from you, your management, and your board of directors. Other valuable souls who cannot commit can earn spots on the board of advisors. Most importantly, try to avoid creating unrealistic expectations that you and or all of your team will always be in harness, always pulling your weight. Investors will not believe that people holding bigger-than-life jobs are going to step down to commit to a startup. It is simply not realistic.

Dr. Market’s Observation:

One further observation—commitment is sometimes sought by investors who ask the entrepreneur to allow a lien on the family home. Stop. Do not go there, ever. The issue of commitment must be raised and resolved without anyone having to sign over the house. However, it could make sense to refinance your home into a low cost interest-only adjustable rate mortgage such as offered by RBC Mortgage Company, Lehman, or Chase Manhattan.



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