The column pointed to advice entrepreneurs should consider when undertaking a new startup venture.
While discussing the first tip, “Good friends make bad business partners,” the FT article stated that, “‘So many people have fantastic ideas in their basement or garage, but they lack clarity over each other’s expectations and what each person is bringing to the business,’ says Jeff Roberts, head of the corporate and commercial team at the law firm Collyer Bristow, who supplied the above cautionary tale.
“It is easy to make assumptions about your partners’ aspirations; it is much better to make a proper business plan. The mantra is: protection, protection, protection, says Mr Roberts.”
Mr. Thompson noted that, “Every entrepreneur should think about the day they want out. Do your partners want the same or do they want to sell after two years and buy a yacht?
“‘Thinking about the exit will help you set up the beginning — a proper constitution, tax planning up front if you think you’re going to be the next unicorn, [and] a sensible structure. Work out the end and then the staging posts on how you’re going to get there,’ says Mr Roberts.”
Other tips in the FT article included the following:
- Guard your intellectual property
- Investigate your investors
- Keep an eye on the equity
