I found myself wondering this recently. One thing I looked over, and I bet a lot of small businesses look over is the amount of money you need to have to pay a lawyer to draw up contracts for your business and the people involved. Whether it be the operating agreement, non-disclosure agreements, or investor contract you need A LOT of money to pay a lawyer, and even more money to pay a good lawyer! I still haven't figured out how small companies manage this. Are they giving the lawyer equity in the company??
I also have been looking around for sites that help with these questions including actual contract creation and there is no good advice around either for someone in this position.
When I have started many businesses later in my career I will hopefully right a book on all the advice I have to impart. I know being an entrepreneur is learning by doing, but there is an element of mentorship and friendly advice that is always relevant in my opinion.
The problem I find is you don't know what you don't know. So therefore you feel completely in the dark. Slowly I have realized that I catch on pretty quick -- topics I felt in the dark about pretty recently I know longer feel this way about, but I know there will be many more topics I just completely don't know the scope of.
I am learning though, and I guess that is what is most valuable here. I would love success, but regardless of how Simpaction turns out, I will have learned so many important lessons and a multitude of information. Whether it is how to make a sales pitch, how to answer questions, how to read financials, how to interview, how to determine who your target is, or even just how to keep an open mind, I will come away from this experience with knowledge that I would not have been able to gather any other way as quickly as I have.
No class, no book, no person could possibly teach me even what I have learned in the past year from starting Simpaction. I am very grateful for that.
Hey Ben! Thanks for your post. As soon as I saw the title, it made me want to write something about lawyers for a startup. I didn't really match your reflective tone, but just wrote about my experience with legal startup stuff while it's fresh in my mind.
ReplyDeletehttp://markliu.me/2011/sep/10/self-incorporating-a-tech-startup/