A new start-up is always fighting to maintain the right balance between cash and expenses. It is very important for the startup to realize that human capital is not a liability but an investment. It is also important to find the right match for your startup with respect to the talent, skill and expertise of the applicant.
Idea to Execution
The journey from the idea to its execution is difficult. Most of the people fail at this stage as it not only involves forming strategies but also executing them. The company’s overall vision is sifted into executive strategies and gets lost many at times. At this point the startup must understand and iterate their strategies based on the vision.
One of the most unappealing and challenging tasks is to tackle technical and compliance know hows. The best option for this problem is to contact consultants and Chartered accountants as they will be able to help you find the required compliance for your industry.
Liaising with various entities like bank, vendors and sales parties is a very time consuming and tedious process. As this does not add any substantial value to the startup it can be outsourced. This will help the startup focus on more pressing matter which require their direct involvement.
How much is too much? What is the right valuation of the company? How much cash do we need for this round of funding? What should this cash be valued at? Should I go the debenture way or the equity way? These are some of the questions that might boggle you when you start shelling out equity.
Setting up an effective accounting structure is the base of every organization. Any shortcuts or make do arrangements for managing the accounts in the beginning will only become roadblocks as the startup scales up. Timely and effective filing of taxes avoids startup from any litigation issues in the future.