Twelve months notice

30 October 2009

reputation
I relate a lot to the arguments made by Chris Dixon in the post below. I am certain many of you relate to this as well and agree it’s a better way of doing business. 

Generally speaking, there are two approaches to relating to other people in the business world. The first approach is transactional and legalistic:  work is primarily an exchange of labor for money, and agreements are made via contracts.   Enforcement is provided by organizations, especially the legal system.  The second approach relies on trust, verbal agreements, reputation and norms, and looks to the community to provide enforcement when necessary.

In the startup world, the latter approach dominates.  It is almost unheard of, for example, to see entrepreneurs or VCs sue each other. Read more on Chris Dixon’s blog.

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One Response to “Twelve months notice”

  1. Sinan Says:

    Huge trust is essential especially when working the the coders and designers. I see them as the babysitter you leave your kid with. You give them directions, but it is totally up to them to do it the way you like it.


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