I remember well the fights with my parents over tidying up my room. I mean, is that really necessary? Organised things are for dumbs, smart guys can navigate in chaos!
Over time, I found out I can avoid this boring task when there is nothing to clean. Everything can be put back to place after I stop using it. And this simple principle works great everywhere. When I do it right at first, I don’t have to get back to them.
It’s even more important in business. Your goal is to build a successful business, and you may want to have an option to sell it in the future. It won’t help if you know, how to navigate the chaos. The investor wants to be able to navigate it itself. Each missing contract, IP or makeshift arrangements will be grounds to hammer the price down. And cleaning the mess during the due diligence is nerve wracking and sometimes even impossible.
Do I know, where and how all my contracts are organised? Do I have that code from a friend covered with IP assignment? Is my accounting showing real accruals and aging of A/R? … Anywhere where I can be tempted to cut a corner and have a temporarily easier way, I should ask myself – if I was an investor, what would I say to this? Well, I rather work overtime to do it right. Because cleaning sucks.
More articles on
March 31st, 2021 • Ondřej Fryc
Imagine a world, in which you have a company you want to sell. A buyer approaches and says: “I’ll give you 300 million for it”, you negotiate a bit and agree on 400 million, sign one page contract (seller, buyer, name of the company, price, date) and the money is in the bank after three days.
October 17th, 2020 • Michal Táborský
Most of our startups have tech background and when we are considering a new investment, my time comes and we chat with the CTO of the object of our interest about IT. I am trying to get a feel if the company can scale – both the team and technology.
January 30th, 2020 • Petr Král
We welcomed 2020 with a gathering of Reflex partners and founders of our portfolio companies. The goal was to trade experiences in informal setting with great food and get to know each other better.
December 23rd, 2019 • Zdena Macháčková
It’s Friday, just before Christmas, December 19th, 2019. I’m going to work, and the mighty Google reminds me again (?) of “How did you like the Dancing House?”… How many times have I been getting rid of these scary “services”? Where else is my data? BI is simply ubiquitous.