E’Ship Diary Part 4: what to pay attention to when starting a business
This is just a short list of challenges that I faced with my current business. Feel free to suggest other things in the comments.
- your relationship with the company & people you’re starting with: coming out of a position that involved reading a lot, a lot of contracts, I’m kind of particular about how to phrase them. I like the idea of contracts if they very clearly state the boundaries of your position and the relationship you have with others. It should also clearly state the deliverables that have to be met, though that can also be included in a separate “action plan.” A good contract should leave no room for misinterpretation, which is why it took about 3 weeks and 8 draft-revisions to get it just how both me and the company wanted it. Of course, a 1 person business doesn’t have to do this, nor someone that doesn’t get paid, though both in “hobby (that become) startups” situations and multi-team startups, it’s good to have a thing on paper that states a number of things including responsibilities & shares, as well as, if possible, time-frames for carrying out the job. You don’t need a lawyer for this, it’s best to start with a simple list of what you want to achieve and work from that. Very important is to mention what national law this contract falls under (e.g. Dutch law or French law), full names & addresses, etc.
- your intellectual property: I’m kind of running up against something like this now, which is why I think it’s worth mentioning. IP has different values in different industries of course, but in my industry, a high-tech non-software one, it plays an important role. Not only is it important to dedicate certain resources at protecting your IP, you also have to watch out that others don’t lay claim on it, just because you spoke to them once or twice (or worked there at some point. The Mattel vs. Bratz case is an interesting one to follow for that.). IP protection also plays a part when talking to outside parties like investors. Last but not least, it does protect you against copycats, though, as mentioned, the value of patents or similar varies from industry to industry.
- your own finances: They say that you should have enough saved up to not have to work for 1 year. I’ll just say that I made sure that I do have a comfort zone, though not so much that I won’t stay hungry (lesson 101 in entrepreneurship and raising (rich) kids: instill a hunger for success).
- the company finances: at my last company, my job was to handle certain business affairs for companies that have their legal address with us. Company finances are a complex affair, and plenty of swindlers out there try to get out of taxes here and there. Not that I don’t sympathise, but be careful of not signing something that makes you responsible for someone else’s problem. Something similar occurred last year, where someone signed something that nearly (!) made him responsible for ca. 1 million euros in unpaid taxes. Let’s just say that the lesson was to have complete transparency from the start and not sign if it doesn’t exist. Preferably this should be specified in the contract (point 1) also. The other side of the coin is that the company has to become a financial vehicle for the people working there. That means that managing its finances (income and expenses) is vital to making sure that there’s also enough money to pay all the costs.
- staying organised: Kind of obvious, a chaotic entrepreneur doesn’t make for a good entrepreneur. As I have about 12 different jobs, I have to make sure that I don’t forget what needs to be done, to prioritise the important things at the right time, and to delegate those tasks that I have no time for or someone else is better suited for.
- staying healthy: I’ve seen three people pass away that I’ve had a professional relationship with. One was of an advanced age, one had a deadly disease, and the third passed away at a very young age of medical complications. Two of these were entrepreneurs, and both let themselves get carried away by stress. Stress means: less sleep, eating crap-food (my new term for fast-food), and not taking the time to exercise. It is not where I want to end up, I want to do a good job (it is just a job) and live long enough to reap the rewards (preferably, I’d like to live forever, but that’s a future startup).
- staying connected to people: as a first time CEO, I have a lot of questions and the best way to have them answered is to ask them to people that are smarter than me. Luckily, there are many, many smart people out there, and people love talking about that which they know.
That’s it for now and all I could fit into 30 min. of writing. All my entrepreneurship diary posts can be followed under the tag ‘Vincent’s eDiary.’ I don’t write about what we do as a company on purpose, but you can always ask in the comments or via the email address on the right.
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First, what I love about business plans. I contains four elements very close to my heart: Writing, talking to people, innovation, and entrepreneurship. That is not to say that writing business plans is a fun activity that should be taken lightly. The crux of writing a business plan is that it needs to be executed upon. And that is where the complication arises.
Working at a financial trust means that many companies that you meet make a bad first impression. Because they come in the shape of ca. 1-10 binders and unless you love handling paper, reading balance sheets and legal documents, and breathing dust, you just won’t like it much. Luckily, reading binders isn’t part of my job description, even though I do it because I want to understand how this business works from start to finish. But, to keep my sanity in check, I try to mix it up between a. doing the (boring) work, b. keeping the overview, and c. doing work that I love.
Rule 101 of blogging: Never write about how you’re planning to lead your life. In my experience, this process of externalising your thoughts, as opposed to internalising them, often leads to people shoving it away from their minds. So, rather than going to deeply into the sh^t that I have to deal with myself, and which would be entirely boring to you, I’ll go across some ‘influences’ for my thinking on work-life balance.


About 6 months ago, or longer, Jason Calacanis wrote an 









