The Startup Checklist: 25 Steps to a Scalable, High-Growth Business

Description

25 Steps to Found and Scale a High-Growth Business The Startup Checklist is the entrepreneur's essential companion. While most entrepreneurship books focus on strategy, this invaluable guide provides the concrete steps that will get your new business off to a strong start. You'll learn the ins and outs of startup execution, management, legal issues, and practical processes throughout the launch and growth phases, and how to avoid the critical missteps that threaten the foundation of your business. Instead of simply referring you to experts, this discussion shows you exactly which experts you need, what exactly you need them to do, and which tools you will use to support them—and you'll gain enough insight to ask smart questions that help you get your money's worth. If you're ready to do big things, this book has you covered from the first business card to the eventual exit. Over two thirds of startups are built on creaky foundations, and over two thirds of startup costs go directly toward cleaning up legal and practical problems caused by an incomplete or improper start. This book helps you sidestep the messy and expensive clean up process by giving you the specific actions you need to take right from the very beginning. Understand the critical intricacies of legally incorporating and running a startup Learn which experts you need, and what exactly you need from them Make more intelligent decisions independent of your advisors Avoid the challenges that threaten to derail great young companies The typical American startup costs over $30,000 and requires working with over two dozen professionals and service providers before it even opens for business—and the process is so complex that few founders do it correctly. Their startups errors often go unnoticed until the founder tries to seek outside capital, at which point they can cost thousands of dollars to fix. . . or even completely derail an investment. The Startup Checklist helps you avoid these problems and lay a strong foundation, so you can focus on building your business. The Startup Checklist: 25 Steps to a Scalable, High-Growth Business Contents Foreword Preface: Why Every Entrepreneur Needs This Book . . . Instead of the Other 93,210 Books on Entrepreneurship Introduction: 25 Key Action Steps (Plus One) for Every Entrepreneur Prepare to Launch Launch and Build Your Company Raise Funds; Collaborate with Investors; Plan for Your Exit Part I: Prepare to Launch 1: Translate Your Idea into a Compelling Business Model Elements of the Business Model The Importance of Understanding Your Business Model Developing a Scalable Startup Business 2: Craft a Lean Business Plan to Serve as Your Venture’s Road Map The Principles of Lean Business Planning How to Make a Lean Business Plan 3: Find and Know Your Competitors Identifying Your Competitors Evaluating the Competition Developing a Competition Visualization Professional Services and Online Tools for Competitive Analysis 4: Build Your Dream Team The Crucial Talents Required to Launch a New Venture Which Pieces Do You Have? Which Pieces Do You Lack? Establishing Expectations Among the Members of Your Founding Team 5: Allocate the Equity in Your Startup Allocating Equity Equity Control and the Rights of the Founder 6: Build a Minimum Viable Product and Validate Your Plan with Customers Conducting Marketplace Experiments The Wisdom of the Crowd 7: Establish Your Brand with Online Public Profiles Yes, You Need a Website Help People Find Your Site Help People Find Your Company 8: Network Effectively Within the Entrepr eneurial Ecosystem Meetups Business Plan Competitions Startup Conferences and Launch Events Accelerators and Demo Days Angel Groups Score Peer Programs for Entrepreneurs Part II: Launch and Build Your Company 9: Incorporate Your Company for Protection and Investment Benefits of Incorporation Delaware? But I Don’t Live in Delaware! So, Um, How Do I Incorporate a Company? Naming Your Business 10: “Lawyer Up” the Right Way How to Choose a Startup Attorney Major Legal Matters for Which Your Startup Will Need a Lawyer Budgeting for Legal Expenses When and How to Change Your Law Firm 11: Recruit Your Boards of Directors and Advisors Understanding the Composition of the Board The Role of the Chairman of the Board Keys to Assembling a Great Board of Directors Maximizing the Value Created by Your Company’s Board The Role of a Board of Advisors Startup Mentors for Your Entrepreneurial Journey 12: Select an Accountant and an Accounting System Business Finance 101 How (and Why) to Hire a Good Accountant Choosing and Using Online Accounting Tools 13: Establish and Manage Your Credit Profile Basics of Business Credit Starting Your Credit Profile with a D-U-N-S Number Building and Maintaining a Good Credit Profile Why and How to Keep Tabs on Your Credit Report 14: Open Bank, Credit Card, and Merchant Accounts Working with Your Bank Kinds of Financial Credit and How to Use Them Wisely Receiving Credit Card Payments 15: Choosing Your Key Technologies, Platforms, and Vendors Hardware Office Suite Cloud Hosting Other Platform Choices 16: Measure Your Business with Data Analytics Use Your MVP to Establish Baseline Metrics and Begin Experimental Improvements How to Make Sure That the Metrics You Gather and Analyze Are Meaningful Tools for Analytics Key Growth Issues to Study with Lean Analytics 17: Round out Your Team with Employees and Freelancers Recruiting and Hiring Employees The New Hire Draft Board Using Employment Contracts Building a Corporate Culture That Is Authentic, Universal, and Consistent Work/Life Balance and a Supportive Corporate Culture The Outsourcing Alternative 18: Establish a Stock Option Plan to Incentivize Your Team Managing Your Option Plan and Cap Table 409(a) Valuations and the Meaning of “Fair Market Value” Part III: Raise Funds; Collaborate with Investors; Plan for Your Exit 19: Understand the Funding Process and What Investors Want to See How Much Money Can I Raise, and from Whom? The Investment Process and the Funding Round What Are Investors Looking For? Yes, Virginia, There May Actually Be Some Free Money. 20: Nurture Your In vestor Pipeline When to Connect with Investors How to Connect with Investors When to Tell an Investor “Thanks but no Thanks” The Materials You Will Need to Pitch an Investor 21: Crowdfunding and Online Platforms The JOBS Act 22: Survive the Term Sheet Negotiation and Investor Due Diligence The Different Types of Equity Investments Note Financing Changing Forms of Startup Financing Term Sheets and Closings The Due Diligence Investigation 23: Get the Most from Your Investors, Now and in the Future Best Practices for Dealing with Your Investors When an Investor Becomes Excessively Demanding Reaching out for a Follow-on Round When Things Go Really Badly 24: Understand Your Company’s Valuation Business Valuation Methods for Investment The Perils of Misvaluation 25: Keep Your Eye on the Exit and Reap the Benefits of Success Going Public Acquisition Who Gets What: The Liquidation Waterfall The Startup Checklist Online: gust.com/checklist Appendix A: The Startup Reading List Appendix B: Sample Due Diligence Request Appendix C: Starting a U.S. Corporation from a Foreign Country Appendix D: Sample Convertible Preferred Stock Term Sheet Appendix E: Sample Convertible Note Term Sheet Appendix F: Sample Founder Accord Acknowledgments Index End User License Agreement