Nothing can bedevil a high-potential start-up more than its "people problems." These problems typically result from choices that founders make as they add team members to their start-up team. Three characteristics of start-up teams must be aligned for these teams to function well: relationships, roles, and rewards (the Three Rs). Early decisions that founders make about the Three Rs can significantly affect their startup's direction and success. This note explores some of these choices and their long-term implications.
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