4 Important homework a founder must do while having LunchSeptember 17, 2018
It is a natural behavior of entrepreneurs to seek advice as much as possible from professionals during an early stage of career. Crucial time starts when you have to meet investors to get funds. One needs to be strong while presenting to investors. The pitch and thoughts need to be used smartly to present with a positive attitude and confidence for a successful impact. These valuable points or tactics cannot be learned from anybody at ones, it requires a professional intervention who is dealing with the same in their regular routine life.
When you talk about the guidance, you want to get in touch with somebody who is pro in this domain. I guess you have started thinking towards a right direction that these experts who can guide you, are non-other than specialists and professionals who are at a top level of management with super busy schedules and always packed with meetings that’s why meeting them during work might not be fruitful as you expected. The better way is to meet them during lunch.
The list of such personalities includes high-priced members.
1) The Accountant
Business schools do not spend time on convincing and understanding the fundamental of business, i.e. how to present accounting.
Well, none of the entrepreneurs will avoid understanding such details. You can simply invite a couple of top accountants to their favorite restaurant. In the due course of time when you are enjoying drinks and food, you can quickly spend 15 minutes to understand the main four documents which are very important for a company to sustain. These documents are pro forma, a cash flow statement, income statement, and balance sheet.
If you are unable to understand the difference between all these documents and the exact lines and columns which should be zero and considered, then it is not false but you are not really ready to start your own business. Each and every investor who is investing in a young start-up knows how to read such documents.
2) The Lawyer
The lucky ones get a chance to sit in a negotiation. This negotiation table will be having smart investors which would make your efforts as their latest company’s portfolio.
But if you have already done your homework with a powerful lawyer, then you will be able to understand an in-depth knowledge of their investor rights agreements. Investors are always going for superior benefits, they are capable enough to dump lots of protective provisions which you should be able to understand and proceed towards a VC section. What is the meaning of liquidation preference? What are the usual protection provisions? What do the rights call tag-along, pro-rate and drag-along means? And much more.
If you are not very familiar with such terms, then you should definitely book a table for your investment lawyer.
3) The investor
Once you are through with the legal and transactional details, it is now time to call out for a practice match. The advantage is that you will not require paying them for their valuable time. Also, it is their role to meet out such energetic, ambitions and young entrepreneurs.
As this meeting is major to gain experience or for practice purpose only, it should be clear in your mind that it should be only verbal communication and no discussion regarding money. It should be done repeatedly to ensure that you are confident enough to face such investors.
4) Professionals from human resource
Any founder when planning to make a team should consider that the 15% of the total salary paid to an employee will be given to the 3rd party, i.e. payroll tax, employment tax, medical insurance and much more. Other than this, it is also important to get an idea about the latest compliance and legal requirements look like. The type of business may or may not be executed as per your thinking or planning but taking care of your employees is the first job as a founder of the company. Thus, this lunch meeting with a human resource professional will be quite important and helpful.