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STARTUP SERIES CLASS #1Formation
• Purpose is two-fold:
• Demystify the process and think about the “why”
• Understand what will move you forward
Best if you lead with the heart
Best if profit is the main
driver
Best if you want the best of both
worlds.
BUSINESS MODEL
• Understanding the business model drives the legal, and the legal will impact the business model.
• Business model canvas a great start, but not end all.
• Must continue to innovate, create a “Business Model Sandbox” as Saul Kaplan says.
FORMATION DOCUMENTS
• Complete at the same time to avoid conflict.
• Draft by looking at goal, entity and business model then work backwards.
• Remember, these evidence validity and accountability. Need to be drafted with care.
• Not tax planning is leaving money on the table.
• Important if you plan to capitalize with debt or property.
• Play a major role in what you net at the end of each year, exit or if there is a transfer/merger.
TAX DECISIONS
BIZ CERTIFICATIONS
LICENSES AND PERMITS
• Check out the OneStop Business Center in Houston if you haven’t already.
• If you’re in a different state, try to find an office similar to this.
• Map out the process/timeline and find areas that may require a deeper dive.
MANAGING RISK
• If you’ve hired an attorney this is where package deals are great.
• Think of risk as land, and risk management as the fence. You want to create as much and tight of fencing as you can. Know what your responsibilities are.
HOW DO I CHANGE DIRECTION?
