By Daniel Roche, Entrepreneur-in-Residence, TechFire
When you launch a new company, every entrepreneur needs to make decisions that set the foundation for the company; some of them will be very difficult and costly to change later. Areas that will require decisions cross many boundaries:
• What kind of corporate legal entity?
• How will you structure your operating agreement and its many very important business and legal clauses?
• Will you use cash based or accrual based accounting?
• Should you raise money? Should you take on debt?
• Should you focus on completing your product or service before you engage a customer?
• What will the company name be?
• What do you want your brand/name to stand for in the marketplace?
• How will you pay yourself?
• If you take on employees, what employee laws are applicable to you – will your employees be exempt or non-exempt?
• What are the important items to pay most attention to in the company’s financial statements (profit and loss, balance sheet, and cash flow statements)?
• Where should you bank and why? Should you have more than one bank account?
• Should you raise money through an equity offering?
• How long of lease should you sign?
• What types of debt instruments make sense for your business?
• If you grow fast, how much office space will you need?
• What government, tax or other filings are applicable to your business?
• How do you balance good business practices with legal protections in your customer contracts?
• How often should you invoice your customer?
• How do you explain your target market?
• How do you find out what kind of marketing is effective? What factors should go into your pricing?
• How do you build a reference list?
• Is your collateral appropriate for your market?
• How do you find the talent you need to hire?
One key problem start-up entrepreneurs face is getting access to trusted expertise to advise them through the start up and early stages of launching and growing their business. TechFire can help!