If you’re ready to take the leap into full-time entrepreneurial life, you’ve got an exciting road ahead. Running a startup can be an amazing life and is a great way to put your ambition and talent to work. However, having a fantastic idea for a startup is just the beginning. It’s important to take the right steps early on in the process of starting out in order to make sure that you have a good grasp of your financials and are organizing your business for success. Here are three beginning steps to help you turn that great idea into a killer startup.
Form an LLC With Founder Vesting Schedule
Companies can choose whatever vesting schedules they want when they are first starting out. If your startup launches with more than one founder and you plan to eventually have it acquired or seek venture funding, startup founders stock should vest over time as outlined by a vesting schedule. There are various reasons for this, such as your founding team not staying together. So instead of sharing common stock, make sure each founder gets their stock according to a vesting schedule — typically the founders won’t get vested until the first anniversary of the company.
Find the Right Business Partners
Finding the right business partners is crucial to a successful business. You probably can’t do everything alone. Even the best idea isn’t going to skyrocket without a great team behind it. Choosing business partners who are experienced, who you trust, and who you can effectively communicate and work with will help you make your idea take off.
Protect Your Idea With an NDA
A Non-Disclosure Agreement, or NDA, is set up to protect Intellectual Property, such as your idea for your startup. An NDA agreement is a contract compelling parties to keep certain pieces of shared info confidential and private. This means that anyone you bring into your business dealings — such as employees, consultants and financial investors — will be legally bound to keeping your ideas and company information private. It’s a smart way to start out because it can take a while to get a secure footing with the people you’re working with.
It can be a dream come true to turn your great idea into a startup business — just make sure you take these initial steps to kick your company off on the right foot.