Done right, a performance review is one of the best opportunities to encourage and support high performers and constructively improve your middle- and lower-tier workers.

My first company failed completely. And it failed at about ten months old. I had about 12 months of savings, so when it failed I was thinking: 'Do I go back to work?' And at that point I believed so deeply in what I was doing that I couldn't imagine anything else other than trying to make this business work.

For those working menial jobs or putting in 100-hour weeks for corporations, the lure of starting your own business can seem like a great way to get more flexibility, upside, and ownership.

I've learned I'm rarely able to stay at home and not work. If I try to 'just sit on my couch for a little while,' I am going to grab my laptop and just knock out a few more emails, or start sketching up some product ideas for TheMuse.com. So when I want time off, I schedule dinners out, movie outings, and on occasion a flight lesson from Groupon.

Understanding your employee's perspective can go a long way towards increasing productivity and happiness.

Keeping a 'CEO blog' or 'founder's blog' can be a great platform for engaging your users in a nontraditional way, reaching people outside of your product pitch and building rapport without selling them anything except a belief in your ideas.

Even your most talented employees have room for growth in some area, and you're doing your employee a disservice if the sum of your review is: 'You're great!' No matter how talented the employee, think of ways he could grow towards the position he might want to hold two, five, or 10 years down the line.