WHY WAS STEVE JOBS

Why was #stevejobs fired from #Apple - the company that he started. I'm going to share how this happened him and other #founders, and how to prevent it from happening to you. In 1976, Steve Jobs and Steve Wozniak founded Apple Computer. Over the next years it invented the personal category that we know today. As the company grew, it went public, and like any company that raises capital does, it brought on an outside board of directors. In 1983, Steve Jobs recruited John Sculley, who was then the President of Pepsi, to become the CEO of Apple Inc. Jobs famously asked Sculley, "Do you want to sell sugar water for the rest of your life, or do you want to come with me and change the world?" This recruitment was a pivotal moment in Apple's history. Sculley's hiring was intended to bring in a seasoned executive with marketing and management expertise to help lead Apple through a period of growth and increased competition. However, tensions between Steve Jobs and John Sculley eventually escalated. This, along with dwindling sales, and board conflict led to Jobs getting fired by his board of Directors from the company that he started. Now Jobs famously returned to Apple in 1997 and made an epic comeback. But that is extremely rare. Neary 90% of founder/CEOs are fired and never get their jobs back. I was one of them, and I am going to share some key strategies that I have assembled to ensure this doesn't happen to you as a founder. Understanding the Board's Role: Firstly, the board's core role is to hire and fire the CEO, therefore, you want to design your board with intent from the day you incorporate. At the time of formation, allocate additional common board seats. This move acts as a defense mechanism, maintaining equilibrium when investors claim their positions during funding rounds. Secondly, Adhere to the One-Investor-One-Seat Rule: You'll generally be giving up board seats at each round of funding - usually at your series A, B, C, etc. Many times during a #fundraising round, investors will ask for two seats - *never* say yes to this. This ensure that you do not lose control of your company overnight and enable you to maintain a balance of power that allows your #startup to thrive. Thirdly, Harness the Power of Term Limits: Consider implementing dynamic board structures with term limits. Adopt a one-year term limit as a rule of thumb to keep your board dynamic. If a board member aligns with your mission, renew their term; if not, view it as an opportunity to welcome someone better aligned with your company's values. Think of term limits as a mechanism for continuous renewal. The ever-changing landscape of the business world requires a board that adapts to new challenges and opportunities. By embracing term limits, you ensure a steady influx of fresh perspectives, fostering innovation and adaptability within your startup. Thirdly, for Common and Independent Seats, try before you buy. What do I mean by this? When you take an #venturecapital , you're going to be bestowed a board member from their fund. But for independent and common seats, you are the gating factor to appointing these seats and you never want to do this in haste. Therefore invite the person to your board meetings and have them join them for as long as you need until you are *fully* comfortable. This will enable you to ensure that they add value. Also, and more importantly, it will allow you to watch the power dynamics between this new candidate and your current board. I once appointed a CFO to my board and once he was on the board it was clear that he was fearful of my investors. I learned that many CFOs actually get their jobs from investors who place them at companies in their portfolios and because of this dynamic, he was afraid to push back on my investors on contentious decisions. Learn from my mistake. Lastly, I always get the question, "Do I really need a board?" If you're a C-Corp AND you're raising outside capital from investors, the answer is yes! #startuptok