There's plenty to worry over when you're starting and running a business. But not every decision is make-or-break and there are some entrepreneurial issues that aren't worth the aggravation. We've compiled a list of common concerns and explain which should be key points of focus. If you're going to lose sleep, at least make it over something worthwhile!
If you're going to lose sleep, at least make it over something worthwhile.
| ISSUE | HOW WORRY SHOULD I BE? |
|---|---|
| Corporation or LLC? | Don't worry about it. Don't agonize over whether to form a corporation or LLC. Lawyers and accountants spend an inordinate amount of time insisting that one is better than the other. At startup it usually doesn’t matter. Both protect individual owners from business obligations. Pick one and move it on. |
| Initial Valuation | Not a big deal. Unless its 1933 and you just struck oil, the market value of your startup is probably negligible. You might think creating a complicated stock structure based on a valuation of $5,000,000.00 on Day One looks impressive on paper (it doesn't) or makes you sound like a savvy entrepreneur (it doesn't). It’s like being 5’6” but saying you’re 6’2” on your internet dating profile. The people you’re trying to impress will instantly see through it, and you’re going home lonely and unfulfilled. |
| We Used LegalZoom | Not helpful but we'll fix it. Not optimal, but fixable. You now have a bunch of paperwork you’ll never read and that may have nothing to do with what your business needs. Consider canceling the $180.00/yr. registered agent service. You can get that for $50.00 (or maybe for free) using OlyverApp. So not exactly an auspicious beginning to your becoming the next Bill Gates but nothing that a little cleaning up can't remedy. |
| Constant Arguing with Cofounders | Be concerned. Ventures often fail because of bad relationships between business partners. Not necessarily because one person is being a jerk. Simply not being on the same page - having different expectations, visions, and goals - can create disagreements that ultimately sink the business. A great barometer of your relationship with your partners is how smoothly things go as you set up the initial infrastructure. Did you spend 3 weeks disagreeing over who has decision-making authority? That’s a red flag. Can’t agree on a basic business plan? Also a red flag. Caught one of your partners in bed with your wife? Probably not a good sign. |
| You think it’s not going to be as hard as people make it out to be. | You're not freaking out yet????? Here are some things you need to be a successful entrepreneur: Persistence, stubbornness, tirelessness, very think skin, and a willingness to recognize when you’re wrong and adapt accordingly. And luck. Lots of luck. If you’re not willing to work your ass off, take criticism (constructive or otherwise), and accept that you might fail despite your very best efforts, entrepreneurship is not for you. |