One of the items entrepreneurs frequently debate is the level of transparency to provide within their startup. How much information does a team member need to know? When does not enough information cause problems? While there’s no perfect answer, I’ve found that it’s better to err on the side of providing more information than expected.
Here are a few areas worth considering as part of the transparency question in a startup:
- How much cash is in the bank?
- What’s the monthly burn rate?
- What are the key metrics for the business and where do things stand?
- What are the key metrics for each department and where do things stand?
- What goals need to be hit to raise the next round of financing (if applicable)?
- What are the top three challenges in the business (some issues, like those that are personnel related, can’t be discussed company-wide)?
- What’s on the Simplified One Page Strategic Plan?
Transparency in a startup varies wildly but more entrepreneurs are providing greater levels of transparency and getting greater levels of buy-in as well.
What else? What are some other transparency questions to consider?