The Ultimate Cheat Sheet For Starting And Running Your Business

August 24th, 2013 / No Comments »

By James Altucher 

Editor’s note: 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.

This is going be a bullet FAQ on starting a business. No joke. If you’re a lawyer, feel free to disagree with me, so you can charge someone your BS fees to give the same advice. If you can think of anything to add, please do so. I might be missing things. If you want to argue with me, feel free. I might be wrong on any of the items below.

There are many types of business. Depending on your business, some of these won’t apply. All of these questions come from questions I’ve been asked.

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?
Delaware.

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.