Setting up a Start-up: Things you should follow

A Start-up is a young enterprise founded by one or more entrepreneurs to create and market a unique product or service. The traditional startup appears to be a shoestring project by its very definition, with initial support from the founders or their friends and families.

Finding the appropriate name is the first and foremost thing and a big decision made by new companies. This will draw the attention of customers to go ahead and contact your company. Thus it will establish the identity of the company. 

In assessing a brand's growth and viability the right company name may be just as critical as the product. 

Choosing the right company name

The name should be specially designed bringing up your name in a company name is easy, and very popular. This might not be quite as ideal as building the business. Do consumers find Rightio plumbing to be a regional, trustworthy brand? Likewise, if the company is to be sold at a later date a personalized company name may put off any potential investors. 

Choosing the right share structure

A company's share structure is used to define its ownership structure. Two equal partners, for example, would each have 50% of shares. Nevertheless, the lack of a defined plan or shareholders agreement will create confusion regarding the number of shares to be issued to each shareholder. 

Similarly, many new companies may issue shares to their spouses or family members as just a way of enjoying the tax advantages that this may provide. There is certainly a sound financial justification for doing so, but it may be a costly error to not consider the rights attached to the shares. 

The share structure may be changed at a later date but that will entail the consent of all voting shareholders. Most shareholders accept that they decided to form the company with multiple share classes and different ownership rights to prevent further disputes.

Choosing the right business partner

Many business ventures start from a shared idea among friends or family. That can work if a close partnership exists between those involved. A good friendship, though, isn't the only significant factor. 

Many business dealings start from a shared idea between friends or family. That can work when there has been a close partnership between those involved. A good friendship is not the only significant factor, though.

Hiring an accountant earlier

It is imperative that exact bookkeeping records are kept and the statutory filing requirements are met throughout a company's life. Maintaining this without a bookkeeper is feasible and many will hold the view that the money spent on an accountant can be better spent elsewhere, especially in the early stages of the company's life.


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