So what can I add to the lesson I just learned.
- Start business relationships with good intentions (but know that that is not enough..)
- Know what you want from the business - dont compromise (it will come back to bite you on the ass).
- Pay legal fees - they worth every cent!
- Ask your lawyers to review ALL your contracts.
- Ensure that you have ALL your bases covered in said contract - you will not regret it!
- Ensure that you have a founding statement.
- Ensure that ALL partners agree to the founding statement.
- Choose your partners wisely - sleep with dogs and you will get fleas!
- Agree shareholding stakes UPFRONT! The share allocation is not that important - yet...
- Ensure you have a buy out / buy in / buy more strategy...
- If in doubt, don't do it! Call said Lawyers again...
- Hire a top notch accountant - she is worth it!
- Don't take shortcuts when forming legal entities - this could prove costly!
- Ensure that ALL partners / shareholders have great credit - if not, ensure that you do not end up carrying deadwood...
- Agree roles and responsibilities upfront - take time to discuss this, in minute detail...
- Minute and document ALL meetings.
- Ensure ALL stakeholders are present when making decisions affecting YOUR business - remember that they are stakeholders too...
- Curb over enthusiastic contractual spending (cell phone contracts are usually 24 months)
- Create Loan accounts - for each partner.
- Use the Loan account wisely.
- Keep track of your startup expenses.
- Agree on who your bankers are...before you sign the first deal - you will need a bank account to put your money in.
- Make sure money paid is paid into the BUSINESS account - at all times.
- Remember - everything is easy before the money comes rolling in....
I'm sure there are more things, but we sometimes forget that we are getting into business to make money. If it was easy, everyone would do it. Business is about Risk - but minimising Risk is being a sensible business person, and hopefully a wealthy one too...
