1. Building a New Venture Team and Planning for the Next Generation Leaders don’t create followers; they create more leaders. -Tom Peters

2. Leaders in the New Economy Effective leaders exhibit certain behaviors. They: Create a set of values and beliefs for employees and passionately pursue them. Create a set of values and beliefs for employees and passionately pursue them. Define and then constantly reinforce the vision they have for the company. Define and then constantly reinforce the vision they have for the company. Respect and support their employees. Respect and support their employees. Set the example for their employees. Set the example for their employees. Create a climate of trust in the organization. Create a climate of trust in the organization. Build credibility with their employees. Build credibility with their employees. Focus employees’ efforts on challenging goals and keep them driving toward those goals. Focus employees’ efforts on challenging goals and keep them driving toward those goals. provide the resources employees need to achieve their goals. provide the resources employees need to achieve their goals. Communicate with their employees. Communicate with their employees.

3. Leaders in the New Economy (cont’d) Value the diversity of their workers. Value the diversity of their workers. Celebrate their workers’ successes. Celebrate their workers’ successes. Are willing to take risks. Are willing to take risks. Encourage creativity among their workers. Encourage creativity among their workers. Maintain a sense of humor. Maintain a sense of humor. Create an environment in which people have the motivation, the training, and the freedom to achieve the goals they have set. Create an environment in which people have the motivation, the training, and the freedom to achieve the goals they have set. Become a catalyst for change. Become a catalyst for change. Keep their eyes on the horizon. Keep their eyes on the horizon. Add the right employees to the entrepreneurial team an constantly improve their skills. Add the right employees to the entrepreneurial team an constantly improve their skills. Create a culture for retaining employees. Create a culture for retaining employees. Plan for “passing the torch” to the next generation of leadership. Plan for “passing the torch” to the next generation of leadership.

4. Building an Entrepreneurial Team: Hiring the Right Employees Avoiding hiring mistakes Avoiding hiring mistakes Elevate recruiting to a strategic position in the company Elevate recruiting to a strategic position in the company Look inside the company first Look inside the company first Encourage employee referrals Encourage employee referrals Make employment advertisements stand out Make employment advertisements stand out Use the internet as a recruiting tool Use the internet as a recruiting tool Recruit on campus Recruit on campus Forge relationships with schools and other sources of workers Forge relationships with schools and other sources of workers Recruit “retired” workers Recruit “retired” workers Consider using offbeat recruiting techniques Consider using offbeat recruiting techniques Offer what workers want Offer what workers want

5. Building an Entrepreneurial Team: Hiring the Right Employees (cont’d) Create practical job descriptions and job specifications Create practical job descriptions and job specifications Plan an effective interview Plan an effective interview Develop a series of core questions and ask them of every candidate. Develop a series of core questions and ask them of every candidate. Ask open-ended questions (including on-the-job “scenarios”) rather than questions calling for “yes or no” answers. Ask open-ended questions (including on-the-job “scenarios”) rather than questions calling for “yes or no” answers. Create hypothetical situations candidates would be likely to encounter on the job and ask how they would handle them. Create hypothetical situations candidates would be likely to encounter on the job and ask how they would handle them. Probe for specific examples in the candidate’s past work experiences that demonstrate the necessary trails and characteristics. Probe for specific examples in the candidate’s past work experiences that demonstrate the necessary trails and characteristics.

6. Building an Entrepreneurial Team: Hiring the Right Employees (cont’d) ask candidates to describe a recent success and a recent failure and how they dealt with them. ask candidates to describe a recent success and a recent failure and how they dealt with them. Arrange a “non-interview” setting that allows several employees to observe the candidate in an informal setting. Arrange a “non-interview” setting that allows several employees to observe the candidate in an informal setting. Conduct the interview Conduct the interview Breaking the ice Breaking the ice Asking questions Asking questions Selling the candidate on the company Selling the candidate on the company Contact references and conduct a background check Contact references and conduct a background check

7. Creating an Organizational Culture That Encourages Employee Retention Company culture Company culture Respect for work and life balance Respect for work and life balance A sense of purpose A sense of purpose A sense of fun A sense of fun Diversity Diversity Integrity Integrity Participative management Participative management Learning environment Learning environment Managing growth and a changing culture Managing growth and a changing culture Rewards and compensation Rewards and compensation

8. Management Succession: Passing the Torch of Leadership How to develop a management succession plan How to develop a management succession plan Step 1. select the successor Step 1. select the successor Step 2. create a survival kit for the successor Step 2. create a survival kit for the successor Step 3. groom the successor Step 3. groom the successor Step 4. promote and environment of trust and respect Step 4. promote and environment of trust and respect Step 5. cope with the financial realities of estate and gift taxes Step 5. cope with the financial realities of estate and gift taxes Buy-sell agreement Buy-sell agreement Lifetime gifting Lifetime gifting Setting up a trust Setting up a trust Bypass trust. Bypass trust. Irrevocable life insurance trust Irrevocable life insurance trust Irrevocable asset trust. Irrevocable asset trust. Grantor retained trust Grantor retained trust Estate freeze Estate freeze Family limited partnership Family limited partnership

9. Exit Strategies Selling to outsiders Selling to outsiders Selling to insiders Selling to insiders A sale for cash plus a note A sale for cash plus a note Leveraged buyouts Leveraged buyouts Employee stock ownership plans Employee stock ownership plans