Image by Mike Dierken under Creative Commons license.
Your Business Idea Rocks! Now What?
Innovating new ways of doing things, inventing new products,
discovering ways to make the world a better place gets the adrenalin pumping.
Such passion fuels entrepreneurs to power through the various stages of
“shipping” or getting to market.
The initial discovery excitement can wither a little as the
complexity of getting to Beta and shipping mode can be down right scary. The
journey, while exhilarating, requires curiosity, courage and tenacity as you
face hundreds of first time decisions, obstacles and Neigh Sayers (you know
those people who think everything is a bad idea and see only the pitfalls)
If you have conviction & vision and have done your homework,
you are likely on top of your game. In the area of starting a Small - Medium Enterprise, however, you may feel out of your depth. Fortunately there have never been so many
resources available to support entrepreneurs.
Serious Considerations to Set
up a Healthy Business
Co-founder(s)
Entering a co-founder relationship is much like a marriage.
Expectations and communication are key to any successful relationship so think pre-nup. A solid shareholder's agreement will help guide you though this maze.
From the outset you must identify what you are looking for in a co-founder. Here are a few actions to help get you there.
- Identify skills required to get the business started and skills required to operate the business once you have shipped
- Get to know yourself well; strengths, weaknesses, expectations of the business. (If you want a local lifestyle business, a co-founder with global aspirations may not be a good match)
- Identify the skill gaps. What skills are missing and needed to complement your strengths and offset your weaknesses
- Cultural expectations. Will you vision of how to relate with customers and your team be compatable? Are your values on par?
Mentors and Advisers
Seeking advice from experienced entrepreneurs enriches and
simplifies the planning process. Mentors are full of valuable advice on
shortcuts, potential down falls, resources, and tax tips and usually have a
wealth of connections from government officials to investors to potential
talent.
Tip: mentors and advisers are busy people. Maximize your
time with them by preparing your encounters with them. Keep in mind they are also potential investors
for your business.
Legal Structure & Finance
Your business may be small right now, but when you plan your
legal and shareholder structure, you need to consider the future. Few of us are
equipped with the legal and finance knowledge for the best future set up. Many cities
have local entrepreneurial organizations that can provide preliminary advice
and help you find legal and accounting services appropriate for a start up. If
you are planning an international business you will likely want to consider firms
with international startup experience.
Recommended Reference: Reference resources are limited in this area. The
Founders Dilemma is informative and a must read. Book Review: http://hbr.org/2008/02/the-founders-dilemma/ar/1
Location Location Location
Countries, cities, provinces and states have their own
advantages and pitfalls for set up. Depending on what kind of business you are
starting, especially if it’s international, you will want to explore the
options well. Look at limitations and
opportunities in free zones, tax environment, ease and expense of
setting up and operating. Business environments vary in their offerings and
limitations such as preferred tax, shipping & distribution, grants and
finance, incubation, local restrictions, reporting, strategic access to
markets.
Locations can vary wildly and
provide real competitive advantage. Advice from Chambers of Commerce, Boards of
Trade, government export organizations and embassies is a great place to start.
Tip: once you are narrowing down your location search get references from other
entrepreneurs about the real, on the ground, experience compared with the
advertised opportunity.
Recommended Reference: The World Bank Ease of Doing Business Index is a good reference: http://en.wikipedia.org/wiki/Ease_of_Doing_Business_Index
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