This isn’t legal or accounting advice. Once upon a time the first step towards starting a business was to incorporate. In the US, that means calling the IRS to get an Employer Identification Number (EIN). With an EIN, entrepreneurs can
Hide Your Wife, Hide Your Kids
Entrepreneurs hear this when raising money from investors. While being married and having kids is usually a sign of stability and adulthood, in the entrepreneurial world, these are sometimes seen as barriers to success. The entrepreneur who talks about family
How To Start A Company When You’re Broke
Starting a company is an expensive proposition, which is why the startup community is filled with privileged people with expensive degrees. When it comes to starting a company, you’ll need cash and contacts. But you can’t count on investors, your
Why You Shouldn’t Use NDAs
It’s natural to want to protect one’s awesome new business idea from copycats and competitors. So it’s not surprising when entrepreneurs start asking everyone they meet to sign a Non-Disclosure Agreement (NDA). This is a bad idea. For the reasons
How Many Founders A Startup Should Have
If you’re looking to start a venture-backed startup, the ideal number of founders is one, two or three, but ideally two. The number of founders should a) cause no issues with fundraising, b) promote a low-drama workplace, and c) be
Why You Shouldn’t Build That App
I often come across great ideas that would obviously make for blockbuster mobile apps. I proceed with almost none of them. The reason I hesitate to build new apps outside of my current project, Power 20, is because mobile apps
How to Determine Pay
I use this framework to think about pay, promotions, and bonuses. Path If an employee is a potential future leader, I’ll want to fast track their promotions and pay scale. If they’re being groomed to succeed a current leader, their
VC Money vs. Bootstrapping
When it comes to starting a business, it’s important for us online entrepreneurs to know what our end goal is. Is the end goal to get a big exit, like getting acquired or going public? Or is it creating a
Pay Like A Banker
It’s easy to disparage bankers and big banks. They have corrupt relationships with their rating agencies, they routinely take positions against their own clients, and at commercial banks, their business model has transformed from giving loans to charging fees. Banks
Virtual Tech Teams Gain Respect
Until very recently Angel investors and VCs were extremely bearish on companies with international tech teams, and teams that didn’t work in the same room. That view is changing. The view is changing because it has to. Hiring a local