Assume Everyone Will Leave in Year One

In this episode of the Startup Therapy Podcast, Ryan and Will discuss the challenges of managing early-stage startup teams, particularly the high likelihood of turnover and the risks of handing out equity prematurely. They talk about the emotional toll of losing key team members and offer practical advice on creating vesting schedules and setting realistic expectations to safeguard against these common pitfalls. The conversation also touches on the dynamics of initial hires, the importance of flexibility, and the need to balance passion with practical considerations in team building.Sign up for the Startups Newsletterhttps://www.startups.com/newsletterResources:Startup Therapy Podcast https://www.startups.com/community/startup-therapyWebsitehttps://www.startups.com/beginLinkedIn https://www.linkedin.com/company/startups-co/Join our Network of Top Founders Wil Schroterhttps://www.linkedin.com/in/wilschroter/Ryan Rutanhttps://www.linkedin.com/in/ryan-rutan/What to listen for00:00 Introduction to Startup Challenges00:09 The Reality of Early Startup Teams01:25 Startup Weekend Insights02:38 The First Love Analogy03:44 The Commitment Dilemma04:24 Life Happens: Unplanned Disruptions12:02 The Fragility of Equity-Based Compensation13:45 Long-Term Team Dynamics15:32 Understanding the Nature of Turnover17:44 The Emotional Impact of Employee Departure18:52 The Reality of Passion and Commitment27:20 Equity Distribution and Vesting Schedules31:50 Preparing for Inevitable Change