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Winblad: Oh yeah. Because you see examples all the time. I do personal refer-

like Figure 2-3 is probably the best way to illustrate these relationships. (In Microsoft Access, there is a built-in relationships function that lets you link your tables and then print the resulting diagram.) As I pointed out earlier, this is the step in the process where you want to take your time. Lots of time.

ences myself. Whenever I m going to join a board, I will ask people for personal references. Your friends, your business colleagues, whatever. I ll address these references as these are not going to make or break this deal, but I want to understand this person. How do they work, how do they think How do they get themselves in corners Or twitterpated What do they need to be surrounded by to be successful You do learn that people get to be fully formed adults fairly early and it s hard to change people s behavior, although it is easy to cushion how they behave with people that buffer their weaknesses. As you go along, you get more microscopic in understanding people before you invest in them if you are going to sit on the board specifically. You can t fully trust your judgment because some people are good actors, but it s always interesting talking to people s personal references.

Livingston: What kind of mistakes do you see new entrepreneurs make Winblad: One of the big mistakes is that, when you form a company, there s a difference between being an inventor and being entrepreneurial to leading a company being the CEO or, especially, the leader. You re not fending for yourself anymore. You re actually fending for shareholders. They can t be fending for their salary; they can t be fending for their net worth. They have to really focus on building value in the company for all shareholders. That sounds very sort of lawyerish, but it s true. Some never can make that jump fully. So engagement is never on building the company while someone is watching to help them along. Just like George Ryan, at CADO, which I mentioned earlier he needed my company to be successful in order for all the software to work for his resellers. He needed me to be successful because I was a core component of the company. So he was not just looking out for me, he was looking out for my company as well and making sure I learned how to look out for my company. And that jump to It s not about you; it s really about a broader thing, the company, which broadly is the shareholders, which broadly is the customers, which broadly is the employees, which broadly is your mission, which broadly is the values you bring into the company. There are some entrepreneurs that never really fully get out of the me thing. And that changes them from being the inventor entrepreneur to being the business leader entrepreneur. Livingston: Are you able to predict this better now that you have had so much

Winblad: Well, if there was a perfect lens on this, it would be easier. Most com-

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