Doing it! – Part 1

“Elements” – Doing it!-Part1:  You and two colleagues have been bantering for months about starting a new venture on an innovative proposal. You all agree that this is groundbreaking technology. The decision is made: you are going to do it!
What do you do now? You need some money to get started and each founding partner must have some skin in the game. A number is set, somewhat arbitrarily; each founding partner puts in, for example, $10,000 and receives a million shares. You have some fun and pick a cool name, which you then register. You buy yourself a template for a website and one of your friends helps to put it together and design a logo; maybe you give that person 100,000 shares for their trouble.
The real work begins. A shareholders agreement is put together. You need to establish the responsibilities and restrictions that the founders must adhere to. What happens if the founder does not carry out their duties? What happens if a founder wants to quit? What happens if two of the partners want the other out of the venture? You may be friends now but that situation may change. A lawyer should review your final document.
Then the first round of a series of strategies, plans and supporting documents must be put together:
• Value proposition
• Business model
• Financial forecast
• Strategic Plan
• Investor documents
The above are living documents, constantly being modified as circumstances change and better information becomes available. Six months or more have likely elapsed since the partners first put in their initial $10,000 and most of that money is gone. What do you do now?