Now and Later
There is of course no “right order” to approach the practical and logistical things you need to do in a startup. Some, like bringing on the first software engineer or getting company email addresses are very intuitive. You just know the time is right. But more often, you find yourself wishing you could expedite a credit card approval or delay an important client meeting. I’ve split up some of the early action items into those to get on top of now, and those that can wait ’til the last minute.
Now - Don’t wait, just get started. Even if it seems too early, or if you’re not quite sure what you need.
1. Get a P.O. Box. A small box costs as little as $10 for 6 months, and saves the hassle of using your brother-in-law’s aunt’s home address. Reason to do it now: USPS can take several weeks to get you a number.
2. Find a Lawyer and Incorporate. For a multitude of reasons, it’s a good idea to incorporate early–well before closing funding. As soon as you have enough money, or find a lawyer crazy enough to go along with you, figure out set up your Delaware Corp. Reason to do it now: Nobody wants to delay funding or pay more taxes.
3. Write an Executive Summary. I’m a huge advocate of writing the executive summary before the business plan. We’ve used ours over and over for a whole range of meetings. Reason to do it now: Never having to prepare a short description of your business again.
4. Hire a Summer Intern. Every company needs to make its own decision about intern strategy, but inexpensive, non-permanent summer help definitely has its benefits. Reason to do it now: The best interns go fast. Most students start looking in January and many accept offers by March.
Hold Off - Some arrangements can be made last-minute, and at times, you’re better off waiting.
1. Building a business plan. Go through the pieces that you need, but don’t spend more time than you need putting together the whole package, unless somebody asks for it. Reason to wait: For every 30 pages of plan, you could have at least 10 pages of web application.
2. Looking for funding. It goes without saying hold off as long as you can, but try to delay your first meetings even a while longer. Reason to wait: Once you get a funding offer, you need to be able to act quickly.
3. Opening up a bank account. Bank accounts become active extremely fast, and it worth it to shop around and see what is out there. Reason to wait: There’s no reason to pay bank fees until you have to.
4. Finding an office. There isn’t a convincing reason to rush, office space opens all the time (especially in the valley). Reason to wait: A garage is cheaper and makes for better stories.