Why major number of early entrepreneurs (with good business models) does not make it to big stage? It has been observed generally that young entrepreneurs develop a lot of suicidal tendencies since early days. They have the business idea (and passion to outperform others) and in process they forgot to have proper protection of their Idea. Further, for them distributing equity is the easiest way to approach without evaluating the future cash flow attached to the same. Thus a small checklist could be: 1. Co-founders to have written understanding (Shareholding arrangement) with proper KRA/KPI define to evaluate the performance 2. Proper Entity formation (Company, LLP, partnership etc.) 3. Have Non Disclosure Agreements for sensitive information / business decision. 4. Have IPRs properly protected (Trademarks and Copyrights) since initial days. 5. Create pool (ESOP) to reward the extra performer. 6. Let expert do the operational and administrative job (drain energy in right direction)
Posted on: Sun, 27 Jul 2014 13:09:38 +0000
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