More on the new lessons for entrepreneurs…

More on the new lessons for entrepreneurs…

Review company documents, articles, shareholders agreement – and when you are in a position of strength, change them to better your future position. And be very suspicious for any proposed change – get advice from other entrepreneurs, and use your company’s money to pay for independent advice for yourself, rather than trusting your company’s lawyer.

Implement and rigorously stick to performance mgmt systems, with targets and metrics, and a personel assessment plan with 360 degree feedback. These will give you advance warnings of problems, and allow your business to perform better.

Be wary when your CFO becomes someone else’s friend – money runs the business, and therefore the CFO plays a critical role in the current and future business. Money follows money, so do not be surprised when your CFO favors the investors more than the entrepreneur. Consider hiring a contractor to keep a second eye on the money, and in any case force yourself (if it is not a natural passion) to dive deep into the numbers all the time.

Develop friendships with other entrepreneurs at the same of higher level than yourself – seasoned entrepreneurs have gone through a lot, so connect with a few as sounding boards. Test them out early on and see if they will share horror stories in detail, or via truisms and vagueness. If they cannot remember the details, they weren’t there, and therefore they are the wrong people for you.

Listen to your inner voice – you are probably right. If you are concerned that something is wrong, you almost certainly should be. If you created the business and hired most of the team, you will have decently attuned spider senses. Use them.

More to follow as they spring to mind, and are prompted by calls and emails. Thanks to the all the contributors so far.

Trackbacks/Pingbacks

  1. Re Imaginatik – what kind of CFO is Shawn Taylor? A vindictive one | Mark Turrell - Changing the World... - September 29, 2011

    […] of the things founders and founding teams should consider as their businesses grow (post 1 & post 2). Maybe readers will find these useful (I know some colleagues already have been able to […]

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