Starting the Startup

Checklist to get you thinking

Cinnabar Moth Caterpillar, St Thomas © David Anderson 2018

{Excerpt from my in-progress book, The Mechanics of Business}

If the Business Plan was properly prepared, then getting started is basically paint-by-the-numbers: Simply follow the instructions in the Business Plan.

The main caution for you is to be extremely frugal about spending cash; it will quickly disappear.

What might not be apparent are the logistical steps required for getting started. These are listed in the next section. I doubt these are exhaustive. Use them as a guide for things you should be doing BEFORE officially starting your business.

Set Up the Operational Foundation

1. SEED CAPITAL
   Find & Arrange the capital necessary to get started. This will probably be your savings, or investment from Friends & Family.
   Later chapters in Part IV will discuss in detail ways of venture financing.

2. BANK
   You’ll need an account to hold the capital and from which you’ll pay expenses. Lately there are some good FinTech online banking options.

3. LEGAL
   (You might need an attorney for these steps. This can be expensive. In Silicon Valley, some startup attorneys are willing to take a combination of stock and cash to do this.)

   1. MOUs (Memorandums of Understanding) or Term Sheets required to get the initial venture funding.

   2. File Incorporation Documents with government authorities

   3. Get any required Business Licenses from government authorities

   4. NDAs, as needed, for employees, subcontractors, bankers

   5. Employment contracts

   6. Partner agreements

   7. Stock certificates or LCC Membership units

   8. Web site:

      1. Privacy statement

      2. Terms of use & limits of liability

4. INSURANCE
   Arrange for any insurance needed: liability, fire, etc.

5. LOCATION

   1. Rent office
      Get the cheapest location to get started; work out of a garage, your apartment, or the simplest space possible. It will be temporary until you can demonstrate repeatable revenue.

   2. Check out utilities for running office.

6. EMPLOYEES

   1. Delay hiring for as long as possible

   2. Hire only the most necessary until repeatable revenue can be demonstrated

   3. Prefer subcontractor over employee; temp part-time over subcontractor; spot one-off over part-time

7. ACCOUNTING

   1. Start your bookkeeping immediately.

   2. Choose a method of bookkeeping

   3. Choose bookkeeping software, but do not get a toy application. It has to meet your initial 3-year needs.

   4. Track & account for all expenses and receipts, capital, loans.

   5. Know what your governmental reporting requirements will be and when.

8. TECHNOLOGY
   You’ll need a tech person to help you set this up if you don’t understand these terms.

   1. COMMUNICATIONS
      This is phones, email, messaging.

   2. NETWORK
      This is how you will exchange data externally and internally.

   3. COMPUTERS

   4. SOFTWARE

9. MARKETING COLLATERAL

   1. Choose a Business Name

   2. If possible and for little expense, have some kind of Logo

   3. Simple business cards (you can use a PC to cheaply print these on card stock)

   4. Simple brochure (you can use a PC to print this on regular paper at first)

   5. Simple Website (do something free, like Google Sites) temporarily (yep, until repeatable revenue) UNLESS absolutely necessary for the sales strategy. In which case, this was a major investment line item in the Business Plan.

   6. Simple Social Media Presence (start with only one or two most relevant to your business)

10. WARDROBE

    1. Any of the company representatives will need to have business-appropriate wardrobe for meeting outside vendors, clients/customers, etc.

    2. Internal uniforms, as required by custom, safety, tradition.

11. MANUFACTURING
    (depends on business plan)

    1. Factory or assembly area

    2. Government regulations re safety

    3. Security cameras or personnel for parts inventory.