Phase 1 Building a Strong Foundation Getting your startup ...
Phase 1 Building a Strong Foundation Getting your startup officially started is, unsurprisingly, the most important, difficult and epic step you’re ever going to take as an entrepreneur. It’s your conception moment; the moment you throw caution to the wind, kick your moving train into gear and go forth and conquer. All without doing any of that vaguely poetic crap whatsoever. Say what!? Pragmatism is the order of the day in these early stages. There’s no place for platitudes. To work for a sustainable launch, you need to stay grounded, literal and with nothing but the future in mind. Don’t just decide on your concept, buy a URL and just start pumping out whatever product/service you’re looking to flog. Business can be a bastard and you need to understand, analyze and properly prepare – you’re about to step into the ring with the heavyweight of all bureaucratic bruisers and receiving a public beat down is not the right way to start any career. Therefore, before you go running in to the ring you need to understand a few things about what it means to form a business, starting with how your company will legally look. Create the go-to German guy, the GmbH; get incorporated as an LTD in the UK or, if you want to get busy in the Land of the Free, perhaps an LLC is the way to go. Decisions, decisions, decisions. For many, this might boil down to geography: Where you are at the time of incorporation and where you come from as the founder. You should also sit down and query how you’d like to sell your product/service, where your principal market will be, how taxation will work, registration and company structure. We never said it was going to be fun. Oh, and don’t forget trademarking and intellectual property rights. Or your social security status as Founder. But after all that has been ironed-out, you should see it’s plain sailing. In terms of paper-work, at least. Organize it all in a nice and neat business plan and decide on a name. Just remember, this is how you’ll be remembered; it’ll forever remain the crux of your brand. Pick something appropriate. These initial moments cannot be overstated. Setting yourself up right, legally legitimate and with a comprehensive understanding of where you and your business stand is the only way to burst on to the business scene sustainably and effectively. Only then can you throw caution to the wind, kick your moving train into gear, go forth and conquer.
Phase 2 Gaining Momentum So your Little Train that Could is showing that it can. It’s hustling along nicely but getting yourself out there and properly showing the business world what’s up is something you’re not quite able to do. You need to pick-up some steam; you need to gather more momentum. You’ve entered the initial stage of any sustainable business model. Welcome to the startup phase. Take a seat, you might be here a while. This all-too important second phase is one in which you’ll really prove your worth. Your business plan has outlined what you’ve got in mind, you have a product, service and market ready, and you’re almost ready to burst onto the scene. Almost. There’s just a few things left that you need to take care of. Get Incorporated The first thing you want to consider is the incorporation of your first company supporters. Moving forward, you’re going to need shareholders, and you’re going to need them fast. Pester friends, family, friends of family and anyone in whose hands you’ll trust a piece of your pie. Draft up official shareholder agreements, get out there and explain to people just why your company is going to be the next big thing. Hell, when it works out you’ll be a hero. Get Invested Next up you need to source the most important resource of all: Money. And despite the cries of The Notorious B.I.G, mo’ money does not necessarily result in mo’ problems. On the contrary, Mr. B.I.G., mo’ money inevitably results in even mo’ money, but that song would never get to number one. So, get out there and get what’s yours. Source investors; approach, pitch and pander until you’ve got enough money to be the business you were born to be. Get Contracted You also need to iron-out all of your necessary contracts. This could be purchasing, supply, employee contracts and, of course, the most important contract of all: Your social security arrangements with the government. Your General Terms and Conditions will also need to be drafted in-line with investor expectations. We never said it was going to be a party. Get Reported And finally, report it all. Log everything, report everything and analyze until you wish you’d never quit your day job. Implement appropriate accounting systems, ensure correct due diligence and company valuation procedures are in-place and underway and make sure you’re connected, online and secure. A company is only as effective as its IT, after all.
This second step will prove to be a make or break for any small startup. Without it, you won’t have the money and the necessary business infrastructure to successfully implement your model on the market. With it, you’ll have the money, the expertise and the pre-implemented processes to get your Little Train that Could right up over that hill. And then you can properly enjoy the ride.
Phase 3 Speeding Up You’re now well underway. Your company has got the momentum it so desperately needed and your sales are slowly picking up. It’s starting to get real. It’s starting to get fun. But don’t take your foot off the gas just yet. Now you’re chugging along nicely, there’s never been a better time to kick it up a gear and really plough into the market. The future is right in front of you, make sure you grasp it with both hands. Just make sure your hands are clean. Gain Venture Capital Getting capital to become a market-ripe company will provide you with enough financing to flip the bird at your competitors as you race past them in your fancy, new, metaphorical sports car. And your company transition at this point will bring you out of the startup phase and into the realm of super-serious grown-up company. It’ll be just like that time you got your first job after university. Your parents will be so proud. Develop Employee Relations As your company grows, so too will the disconnect between you and your staff. Sure, a core staff of dudes in T-shirts who jumped on board right at the very beginning will inevitably remain, but more employees will result in less personal interaction. Therefore, staff incentives are no longer a few beers with the boss after work on a Friday; you need to get official. Loyal staff are valuable staff, implementing effective incentive programs will keep the good ones on board. Ensure your Appropriately Protected Just like the best things in life, rushing in unprotected is a little risky. You wouldn’t jump out of a plane without a working parachute and you wouldn’t sleep with a… well, you get the drift. Securing your intellectual property and ensuring that nobody else is benefitting from your hard work is crucial at this point in time. Be Transparent You’ll also want to remain as transparent as possible. After all, transparency equals trust and trust equals business. So make sure your tax is in order, make sure your company figures are reliable and work within wholly moral (and of course, legal) frameworks. Which brings us on to our next point… Play the Game
And finally, it goes without saying, you have to play the game. Pay what you owe, treat your employees right and encourage organic company growth whilst remaining clear and legitimate. There are numerous ways to do this, but being 100% informed of your options, especially in the various international markets you might be present, is the only true way to guarantee you’re doing the right thing as your company truly takes off. And that’s it. You’re legitimized. The hard work has been done and you’re now well on the road to business domination. Now go out and buy a new wardrobe of fancy suits. You’re going to need them.
Phase 4 Aiming Higher You’ve officially arrived. Your company is doing well; you’re literally raking it in. All that’s left is the final piece of the puzzle: Company expansion. Get it right and all of a sudden you go from a budding business to an overnight success story. And you get to bask in all of the advantages that comes with that label, of course. Are you ready? Now before we begin, it’s wise to quote a leading thinker of our time. As Uncle Ben one said, “With great power comes great responsibility.” And this sentiment is not only valid when wrapping up bad guys in weird spider web stuff that comes out of your wrist. No, as your business is now a force to be reckoned with, you have a hell of a lot to lose. Approaching everything cautiously and seeking appropriate consultation is the only way to ensure you don’t turn the pages of your success story in to toilet paper. Prepare for Effective Expansion Getting yourself ready for expansion is the key to a fluid process. Going international is a pretty big moment in the life of any company, so don’t take this lightly. Prepare, prepare and prepare some more. Make sure you know what you’re getting yourself into, whether that be individual new markets or worldwide domination. Make sure you know what’s facing you in terms of logistics, legalities, customs and tariffs. You don’t want to be that time Walmart tried to conquer Germany. Or that time Germany tried to conquer the world. Prepare for an IPO If an IPO is an option, don’t go ahead with one until you’ve really considered the consequences and put in place effective procedures to handle the transition. To be poetic, the soul of your company changes after a public offering. Or to be more to the point, the company you were once in charge of will have a very different infrastructure afterwards. Of course, you may go on to raise significant capital, or you may not. You may also go on to expand the scope of you brand and increase consumer recognition, or you may not. You may enter a whole new world of diversified financing opportunities, or you may not. The fact of the matter is, an IPO is not always the right decision, so make sure you weigh-up every possible scenario before rushing in head first and bursting on to the public scene. If you plan everything, receive appropriate consultation and go for either of the above, good luck. There’s no reason you shouldn’t be as successful in the global market as you have been domestically, provided you implement your product/service intelligently. This logic remains for any initial public offerings. Get these right and you’ve made it. Say goodbye to your startup days and say hello to new beginnings. We just ask that you keep the company dog.
Phase 2 Gaining Momentum So your Little Train that Could is showing that it can. It’s hustling along nicely but getting yourself out there and properly showing the business world what’s up is something you’re not quite able to do. You need to pick-up some steam; you need to gather more momentum. You’ve entered the initial stage of any sustainable business model. Welcome to the startup phase. Take a seat, you might be here a while. This all-too important second phase is one in which you’ll really prove your worth. Your business plan has outlined what you’ve got in mind, you have a product, service and market ready, and you’re almost ready to burst onto the scene. Almost. There’s just a few things left that you need to take care of. Get Incorporated The first thing you want to consider is the incorporation of your first company supporters. Moving forward, you’re going to need shareholders, and you’re going to need them fast. Pester friends, family, friends of family and anyone in whose hands you’ll trust a piece of your pie. Draft up official shareholder agreements, get out there and explain to people just why your company is going to be the next big thing. Hell, when it works out you’ll be a hero. Get Invested Next up you need to source the most important resource of all: Money. And despite the cries of The Notorious B.I.G, mo’ money does not necessarily result in mo’ problems. On the contrary, Mr. B.I.G., mo’ money inevitably results in even mo’ money, but that song would never get to number one. So, get out there and get what’s yours. Source investors; approach, pitch and pander until you’ve got enough money to be the business you were born to be. Get Contracted You also need to iron-out all of your necessary contracts. This could be purchasing, supply, employee contracts and, of course, the most important contract of all: Your social security arrangements with the government. Your General Terms and Conditions will also need to be drafted in-line with investor expectations. We never said it was going to be a party. Get Reported And finally, report it all. Log everything, report everything and analyze until you wish you’d never quit your day job. Implement appropriate accounting systems, ensure correct due diligence and company valuation procedures are in-place and underway and make sure you’re connected, online and secure. A company is only as effective as its IT, after all.
This second step will prove to be a make or break for any small startup. Without it, you won’t have the money and the necessary business infrastructure to successfully implement your model on the market. With it, you’ll have the money, the expertise and the pre-implemented processes to get your Little Train that Could right up over that hill. And then you can properly enjoy the ride.
Phase 3 Speeding Up You’re now well underway. Your company has got the momentum it so desperately needed and your sales are slowly picking up. It’s starting to get real. It’s starting to get fun. But don’t take your foot off the gas just yet. Now you’re chugging along nicely, there’s never been a better time to kick it up a gear and really plough into the market. The future is right in front of you, make sure you grasp it with both hands. Just make sure your hands are clean. Gain Venture Capital Getting capital to become a market-ripe company will provide you with enough financing to flip the bird at your competitors as you race past them in your fancy, new, metaphorical sports car. And your company transition at this point will bring you out of the startup phase and into the realm of super-serious grown-up company. It’ll be just like that time you got your first job after university. Your parents will be so proud. Develop Employee Relations As your company grows, so too will the disconnect between you and your staff. Sure, a core staff of dudes in T-shirts who jumped on board right at the very beginning will inevitably remain, but more employees will result in less personal interaction. Therefore, staff incentives are no longer a few beers with the boss after work on a Friday; you need to get official. Loyal staff are valuable staff, implementing effective incentive programs will keep the good ones on board. Ensure your Appropriately Protected Just like the best things in life, rushing in unprotected is a little risky. You wouldn’t jump out of a plane without a working parachute and you wouldn’t sleep with a… well, you get the drift. Securing your intellectual property and ensuring that nobody else is benefitting from your hard work is crucial at this point in time. Be Transparent You’ll also want to remain as transparent as possible. After all, transparency equals trust and trust equals business. So make sure your tax is in order, make sure your company figures are reliable and work within wholly moral (and of course, legal) frameworks. Which brings us on to our next point… Play the Game
And finally, it goes without saying, you have to play the game. Pay what you owe, treat your employees right and encourage organic company growth whilst remaining clear and legitimate. There are numerous ways to do this, but being 100% informed of your options, especially in the various international markets you might be present, is the only true way to guarantee you’re doing the right thing as your company truly takes off. And that’s it. You’re legitimized. The hard work has been done and you’re now well on the road to business domination. Now go out and buy a new wardrobe of fancy suits. You’re going to need them.
Phase 4 Aiming Higher You’ve officially arrived. Your company is doing well; you’re literally raking it in. All that’s left is the final piece of the puzzle: Company expansion. Get it right and all of a sudden you go from a budding business to an overnight success story. And you get to bask in all of the advantages that comes with that label, of course. Are you ready? Now before we begin, it’s wise to quote a leading thinker of our time. As Uncle Ben one said, “With great power comes great responsibility.” And this sentiment is not only valid when wrapping up bad guys in weird spider web stuff that comes out of your wrist. No, as your business is now a force to be reckoned with, you have a hell of a lot to lose. Approaching everything cautiously and seeking appropriate consultation is the only way to ensure you don’t turn the pages of your success story in to toilet paper. Prepare for Effective Expansion Getting yourself ready for expansion is the key to a fluid process. Going international is a pretty big moment in the life of any company, so don’t take this lightly. Prepare, prepare and prepare some more. Make sure you know what you’re getting yourself into, whether that be individual new markets or worldwide domination. Make sure you know what’s facing you in terms of logistics, legalities, customs and tariffs. You don’t want to be that time Walmart tried to conquer Germany. Or that time Germany tried to conquer the world. Prepare for an IPO If an IPO is an option, don’t go ahead with one until you’ve really considered the consequences and put in place effective procedures to handle the transition. To be poetic, the soul of your company changes after a public offering. Or to be more to the point, the company you were once in charge of will have a very different infrastructure afterwards. Of course, you may go on to raise significant capital, or you may not. You may also go on to expand the scope of you brand and increase consumer recognition, or you may not. You may enter a whole new world of diversified financing opportunities, or you may not. The fact of the matter is, an IPO is not always the right decision, so make sure you weigh-up every possible scenario before rushing in head first and bursting on to the public scene. If you plan everything, receive appropriate consultation and go for either of the above, good luck. There’s no reason you shouldn’t be as successful in the global market as you have been domestically, provided you implement your product/service intelligently. This logic remains for any initial public offerings. Get these right and you’ve made it. Say goodbye to your startup days and say hello to new beginnings. We just ask that you keep the company dog.
