There was a really interesting article on Tech Crunch a week ago that was authored by James Altucher. James Altucher is an investor, programmer, author, and several-times entrepreneur. His latest book, “Choose Yourself!” (foreword by Dick Costolo, CEO of Twitter) came out on June 3. Follow him on Twitter @jaltucher.
Altucher gave a barrage of quick points on what you should or should not do for your start up. Some were spot on IMO, some were a little off and some were funny. Take #35
35) When should you have sex with an employee?
When you love her and the feeling is mutual.
That one alone got a myriad of comments from Homophobia to sexist, which Altucher replied very sharply, “Why are you assuming the boss is a man ?”
The comment section alone of this post is a big read in and of itself. There are people who think the post was great, to those that thought it sucked.
Its worth reading over the weekend if you have not.
From the article:
The First 10
The rules are: I’m going to give no explanations. Just listen to me.
1) C Corp or S Corp or LLC?
C-Corp if you ever want to take on investors or sell to another company.
2) What state should you incorporate in?
3) Should founders vest?
Yes, over a period of four years. On any change of control the vesting speeds up.
4) Should you go for venture capital money?
First build a product, then get a customer, then get friends-and-family money (or money from revenues which is cheapest of all) and then think about raising money. But only then. Don’t be an amateur.
5) Should you patent your idea?
Get customers first. Patent later. Don’t talk to lawyers until the last possible moment.
6) Should you require venture capitalists to sign NDAs?
No. Nobody is going to steal your idea.
7) How much equity should you give a partner?
Divide things up into these categories: manage the company; raise the money; had the idea; brings in the revenues; built the product (or performs the services). Divide up in equal portions.
8) Should you have a technical co-founder if you are not technical?
No. If you don’t already have a technical co-founder you can always outsource technology and not give up equity.
9) Should you barter equity for services?
No. You get what you pay for.
10) How do you market your app?
Friends and then word of mouth.
Read the full article here