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.
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August 10th, 2021 • Eduard Míka
Nobody likes to read contracts (except myself, but other people have weird hobbies too, right? … someone keeps poisonous spiders, I read contracts). Tens of pages of boring text and contrived sentences, written in a language few understand.
August 3rd, 2021 • Eduard Míka
Every day, hundreds, if not thousands of startups, are founded. Most of them won’t make it into a real company. Often not because there was not a good idea at the beginning or the customers did not want to buy the product or service. The reasons are often quite prosaic.
June 29th, 2021 • Ondřej Fryc
I know, I know, I am taking my time with finishing the series. Sorry! Maybe it would be easier for you to get a professional investor, who will do all that for you 🙂
June 4th, 2021 • Ondřej Fryc
Most importantly: as in any job, you can only succesfully play a league you belong to. Goldman Sachs will not sell your local fruit stall network. You need to know what you want to achieve and realistically assess who might have the competence, but also motivation, to help you.