Thursday, February 26, 2009

Two Essential Components of Any Startup Anywhere in the World

When I started my company two years ago, I focused on things I felt were important to get the business off the ground. That was, creating the service and product. Things were going fine until recently when we found ourselves in need of emergency accounting and legal help. On the accounting side, we came to realize that we need a big help from an expert accountant to fix our (accounting) books (for processing a loan). On the legal side, we found holes in our Articles of Association/Articles of Incorporation and MOA (Memorandum of Association) when we needed it to resolve an issue. We are ending up spending more money than we would have had we done it right the first time. The worst thing is that we might miss a business opportunity now because we short changed the process when I setup of our business.

So, if you are starting your business, do yourself a favor by finding a good accountant and a lawyer. If you are setting up a business in a developing country, it is even more important. There is a tendency among entrepreneurs, especially the first timers, to downplay the need for an accountant and a lawyer. Ok, I understand you want to spend all your limited startup capital on the core business. Please don't wait too long like me though. Make sure that the structure of your business is setup to succeed.

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