Friday, 13 May 2016

Top 5 things to avoid doing, if you are embarking on a start up in 2016

Please remember that the path to true success does not allow for shortcuts. So don't take them!

So, here are the top 5 things one should avoid doing if you would like to achieve start-up success:

1) Do not let out in-depth details to how the idea will be successful before filing an IPO.

Securing your intellectual rights to your idea is almost the first step you should take once you have decided to embark on the start up journey. Not doing so leave you open to intellectual theft and no recourse when it is committed. It costs very little and gives you a good sense of security for a solid year before you have to renew. 

2). Do no by any means put off the incorporation of a company.

Once registered, the company should try it's best to dot it's I's and cross it's T's in order to prevent the long arm of the law from coming after it in any way. Some prefer to wait until the company has investors or perhaps begins making an income, nut this is not the safest thing to do as the tax implications are "no bueno". To prevent theses issues file for incorporation as soon as possible.

3). Do not give away more equity than is required to drive the business.

A lot of the time investors come into a start-up looking like the knights in shining armor and performing like sharks at a buffet. Do not be the buffet...50% of the time a star-up does not even actually require an investor. Sometimes it's enough to tighten your belt and see how far your start-up can grow without the illusion of support that invested money provides. 

4). Do not count a discussion between friends as a firm agreement.

Let's be real if there is one thing we learnt from the Zukerburg saga is ,,,,,, never trust verbal contracts. More than 90% of the time this will bite you in the toushy. No need to hiring a lawyer either, however, some sort of paper trail or even email trail may come in handy. As when you and that amazing idea makes it to unicorn status, people do come back with hands wide open.

5). Do not assume you know what the customer wants.

Having a startup is one thing, having a great idea/product is another, assuming you are automatically in tune with what the consumer is looking for is a ginormous mistake. Now that you are all ready to go with the startup of your invention, after you launch it is very important to observe how the product or service is being received by the consumer and what they may or may not require of your company going forward. This is the key to survival and maintaining longevity in business. Nothing ever starts perfect in business, but with time and dedication it can get very close.