- RoC CFO, Doug Smith shares some advice on the 5 pieces NEEDED for Startup life.
1. Of significant importance, support (ESPECIALLY spousal support), is essential to beginning your own business. Believe it or not, you are going to be married to your new business and you better be sure your significant other and the most important people in your life are on board with sharing you with this venture. You will be like a pressure cooker turned on high as you start this business and the last thing you need is to face negativity in your personal life. The first partners you have must form a solid support system.. If you don’t have anyone, it’s wise to get one to cheer you on during the difficult times to come.
2. An accountant…. Yes the boring bean counter should be the second addition to your team! For starters, if you pick the right one (hint hint CPA), your objectives will be more important than his own. A choice of entity structure for your venture is complicated and you will need a guide to the economic and noneconomic factors of this choice. The tax implications are huge and a CPA can navigate these treacherous waters.
3. Lawyers are the utmost necessary evil. As much as they are disliked, they are an important and necessary component of your startup team. The CPA will guide you to the correct entity structure but the lawyer will implement and advise on its creation.
4. Insurance agents are right up there with lawyers on the evil scale. If you are one of the few people in America who does not have a brother-in-law as an insurance salesman, consider yourself lucky if you can find a commercial broker who knows what he is doing and can truly advise you on the risks and costs of
5. Finally, bankers and investors who are willing to finance your new business are your new best friends. Unless you are fortunate enough to have been born with a silver spoon in your mouth, you are going to need a funding source for this new untested and untried idea. It doesn’t matter if you believe in what you are doing if you can’t convince the money.
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