10 Common Startups Mistakes

Leave a comment

To leave a comment please Sign In ⇒ or Sign Up ⇒.

You can also sign in with your Facebook or Twitter account.

1. 203 days ago

   

   krushtown

   End of session for me! Lunch time!

2. 203 days ago

   

   krushtown

   Non-compete agreements: "A lazy man's non-disclosure". Agree that non-competes should be avoided.

3. 203 days ago

   

   krushtown

   The default is that your contractor owes their work.

4. 203 days ago

   

   krushtown

   Last one: bad contractor arrangements. Be careful with work made for hire. All investors will ask to see all contractor agreements.

5. 203 days ago

   

   krushtown

   
6. 203 days ago

   

   krushtown

   Also, important understand sales channels. Not every idea is a business.

7. 203 days ago

   

   krushtown

   Non-legal mistake: Forgetting marketing, marking is not easy and expensive. For every viral success there are hundreds of companies that ignored marketing and lost.

8. 203 days ago

   

   krushtown

   Takeaway, if you aren't sure, ask about 83B

9. 203 days ago

   

   krushtown

   83B: for restricted stock file 83B that allows you to pay taxes when stock is granted

10. 203 days ago

    

    krushtown

    "You never know if you are the person that stays or goes." Vesting schedule: 4 years for founders of VC backed company, 3-4 years without investment

11. 203 days ago

    

    krushtown

    And something else to think: vesting terms. Don't get caught without them!

12. 203 days ago

    

    krushtown

    Another mistake: equity is cheap. Dont give out equity to non-founders for short term work if you don't have money early on. Can be extremely costly down the road.

13. 203 days ago

    

    krushtown

    My advice on terms of service and privacy policy documents: check out Wordpress.org They allow use of their documents under the creative commons license (we use them here are Blogcastr)!

14. 203 days ago

    

    krushtown

    Don't use "Home grown contracts". Get a lawyer. Business and legal benefits. Acquirer will insist upon certain terms. Need to limited liability. If you can't afford one - use someone else's contract (didn't hear that here)

15. 203 days ago

    

    krushtown

    
16. 203 days ago

    

    krushtown

    C-corp vs. S-corp vs. LLC: LLC is often far more complicated

17. 203 days ago

    

    krushtown

    Incorporate EARLY! Cheaper and cleaner. Most troubling mistake people make is to wait on this.

18. 203 days ago

    

    krushtown

    
19. 203 days ago

    

    krushtown

    Equity allocation/issuance. Example: don't make verbal agreements. Also, unless you are clear about time, don't specify percent of equity, deal in number of shares, that can't vary based on dilution

20. 203 days ago

    

    krushtown

    Keep it simple, do things that are predictable, don't sign contracts that prevent sale of company

21. 203 days ago

    

    krushtown

    
22. 203 days ago

    

    krushtown