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.
Investor Management
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.
Legal Considerations
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.
Originally published on June 29, 2016
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
