I shall dispense this advice now.
1. Treat your early employees more like partners than wage slave.*
2. This follows from the previous one. After every hire(and fire) re-consider your selection process.
3. Remember the Charlie Munger advice on trust here (or quoted below)**.
4. The best problem solvers, prefer to focus on solving the problem(s) and go right on to the next problem. They would much rather leave the performance reviews, raises (promised at the time of joining) etc.. to others. So if you do promise any review and raise based on that, follow through, Don’t delay with “we’ll do this in a formal setting in two weeks” dodge and then fail to follow through. You won’t build the best possible team with that approach.
5. Find the product/market fit..(Meh. I’m not qualified to say much about this without hands-on finding one).
5. Build a monopoly niche. Don’t compete on price, use your skills and knowledge to build a big manic monopoly, that would be the biggest barrier of entry to any competitors.
By the way the last two are just me re-gurgitating what I think makes sense from what I have read around. Only currently experimenting with implementing them.
** – “The highest form that civilization can reach is a seamless web of deserved trust — not much procedure, just totally reliable people correctly trusting one another. … In your own life what you want is a seamless web of deserved trust. And if your proposed marriage contract has forty-seven pages, I suggest you not enter.”
Source: Wesco Financial annual meeting, 2008 (quoted in Stanford Business School paper)
* — Note how I didn’t say anything about politeness or good salary or on time salary etc. That’s because all of those can be wrong ones to emphasize. My whole reason for this point is that they should have skin-in-the-game. Everything else can be worked around. Just don’t do this.