Founder Tip
of the Week

Innovators Wanted

Big ideas, Bite sized. Welcome to the Founder Tip of the Week.

Options – Structural Elements

Stock options – the right to purchase stock in the Company at a fixed price (“exercise price”) for set period of time-generate many of the questions facing a startup lawyer.  This relates to the popularity of options as a way to compensate employees and contractors. Benefits: Properly structured options are…

Top 5 Insurance Products for Startups

Q:  How should I invest in insurance for my startup? What types of insurance do I need? What can I expect from the claim process? A:  A full risk assessment of your company’s developing business requires an audit of your potential liabilities.  However, as a general rule…

Protect Your Earnout

The most common exit for early-stage companies is acquisition by another company.  Because early-stage companies by definition do not have a long history of revenue and earnings performance, it can be difficult for the buyer and seller to agree on valuation.  The seller will argue for a…

Top 5 Privacy Tips for Startups

Startups have bigger concerns than privacy, or so they think. Many startups have learned that being young and small does not keep them off the radar screens of privacy regulators, and they can be vulnerable to costly investigations.  Privacy issues that come to light in the course…

Taking the Haircut

It’s a proud day when you receive your first round of funding.  Each subsequent round helps build your dream, but at a cost.  As commitments are made, do you take the time to think about how much company you now own?  BothSidesofTheTable.com put together this infographic on…

Writing an Executive Summary

Key to any early stage fundraising effort is a well-crafted Executive Summary, or Exec Summary. This succinct document describes your new venture and preemptively addresses fundamental questions that prospective investors will have. I have read hundreds of executive summaries over the years. And, the few good ones…

A Business Plan For Your Life (And Your Death)

A great estate plan is like a business plan for yourself and those most important to you. Just as a business plan is a road map to long-term success, an estate plan is a road map to achieving peace of mind for your family and perhaps even your business partners. As we have heard many times before, there is no escaping death and taxes, so we might as well plan for both. And yet, when we work with founders, we often find that they are so consumed with running their businesses that their estate plans—their "personal" business plans—are in disarray or nonexistent. Below are a few pointers to help you begin to chart a course in estate planning.

Identifying Employees for Your Startup

The right employees help your startup rise to the top. Identifying those employees early can save time and money. The infographic below created by FocusHR points out some of the innovative strategies companies like Zappos and Google employ to find dedicated employees and create a collaborative work environment.

Popular Tools for the Entrepreneur

Starting any successful business requires having the right tools, but knowing which ones are right for you can be the challenge.  BestVendor surveyed 550 startups, each with up to 100 employees, to find what they have in their kit.  The results are in this infographic.