But the most valuable lessons I've learned about building a business aren't found in many books. They're not about strategy, markets or technology. They're about people. And the best lessons I've learned about the human side of business have come from working side by side with my partner Phil Reed here at Highway 12 Ventures.

Phil was the co-founder of ComputerLand and BusinessLand, two highly successful startups, both of which went public. He's raised capital from the top venture capital firms in the world and has been part of small companies that never fulfilled their promise and had to shut their doors. (If you ask him, those were the source of the most valuable lessons he's learned). In fact, Phil has founded or co-founded more than a dozen companies during his career, and he is incredibly passionate about sharing those lessons and helping budding entrepreneurs.

So I thought I'd take this opportunity to give local entrepreneurs the top 12 lessons I've learned from my partner. Call it "Phil's 12 days of Christmas for start-ups."

1. Never have a difficult discussion over e-mail or the phone. Phil has always taken the time to sit down with people face to face to work on problems.

2. When people act irrationally, try to find the underlying issue. Are they having problems outside of work? Are their families OK? Look past the issue and try to help. Phil's taught me that good people usually act irrationally only when there's an outside root cause.

3. Build a large network of people you respect and trust to advise you on your business. More eyes make better decisions.

4. Avoid the temptation to put friends or confidants on your board. You need people who aren't afraid to challenge you and are willing to tell it to you straight.

5. Be careful of leverage. Just because you have the upper hand at the moment doesn't mean you have to use it. Having leverage and not using it is an extremely powerful gift. It usually comes back to you.

6. The quality of the people you hire means infinitely more than the product you've developed. Phil's mantra has always been, "Great people build great companies."

7. Enjoy the journey. It's not about the exit or the liquidity event. If you're doing it just for the money, you'll never make it through the hard times.

8. It's OK to build meaningful relationships with the people you work with. Life's too short to not share those bonds.

9. If things go south, you have nothing to be ashamed of. Starting a business is a noble pursuit. Dust yourself off, look everyone in the eye, pay off your debts and know you gave it your best shot. Then go start another one.

10. Resumes tell only part of the story. Hire high-character people who have consistently demonstrated exceptional achievements in their lives, both in business and other pursuits.

11. Sometimes you have to be willing to go against the crowd. Have the courage of your convictions.

12. Always do the right thing. Trite? Yes. What's the "right thing"? That feeling in your tummy. Don't ignore it. It's the "thing" that lets you rest comfortably at night.

Merry Christmas, Phil. You inspire everyone around you, and I know I speak for countless entrepreneurs here in the Treasure Valley who you've mentored and have learned so much from you. This community is lucky to have you.

Mark Solon is the founder and managing partner of Highway 12 Ventures, Idaho's largest venture capital firm.

Starting Up is a series published on Thursdays. The columns grew from discussions between the Statesman and local tech and entrepreneurial leaders and are coordinated by Julie Howard, a marketing specialist for the Idaho Department of Commerce. Reach her at julie.howard@commerce.idaho.gov.

Article written by Mark Solon - Special to the Idaho Statesman

Edition Date: 12/18/08