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Limit the shares of your company so that each new hire requires explicitly giving up shares of your own.

Here’s my thinking: Start off the corporation with 1,000,000 shares per founder. Each time you want to hire someone new, you have to decide how many shares the new hire receives, and those shares come out of your personal pool. This will force you to consider the value of the employee and force you to feel some pain, thus ensuring you think at least twice before any new hire.

Hatched on Sunday, May 15, 2011