Forming a start-up begins with a great idea. This may be a product or a better way to do something, and it represents the seed from which your company grows. But planting the seed is just the first step. Moving from creating a company to running it as a CEO requires careful, diligent work in a number of areas. Your transition into leadership will often make the difference between your company’s success and failure.
Your investors have provided some of the capital you needed to start your business. They are now your company’s owners, and have a stake in your performance. Accordingly, you need to manage their expectations as you grow. Communicate regularly to let them know what you are doing and why, and ask questions. They invested in your idea because they see a path to your success; they will appreciate the opportunity to help, and will stay more engaged in the investment.
Manage Your Board
Your board of directors can create obstacles if you are not all on the same page. You must remember that disagreements you may have come in the context of everyone wanting the best for your company. Part of this is regular communication outside of the meeting context. Work with them to decide what reports they want. Then, prepare and distribute agendas before board meetings so everyone knows what you need to cover and can make the most of the time.
Financial and Tax advice
The CEO has a responsibility to maximize the profit. There is no greater loss, then tax loss. It is fair and reasonable to pay what you owe, but a wrong financial turn, can set you on a path towards undesirable tax implications. Nobody likes paying taxes, its true for companies to. Consult with your accountants and international tax advisers. Plan your corporate structure and holdings, to maximize your tax benefits and minimize your exposures.
From your company’s beginning, you will be required to identify and comply with numerous legal requirements and legal hurdles. This begins with your founders’ agreement and articles of incorporation. You need to form the right entity and follow all the regulations from the get-go. You need documents to be as clear as possible, because what you agree to at the outset may not be so clear later.