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Read this article - start-up registering business in india ?The information on starting or registering a business in india, is not one of those things that are very well available. The government staff who do it, don't want any layman to be informed, because their bread and butter is in the bribe money they get on each and each thing they do to accept your registration to helping you understand what and how to do it.But things are better with egovernance now.. read on. I think the company registration stuff is one of the first things to be a successful egovernanance project for India.About this post:I am setting up this blog post, and will be updating it regularly as I find more information on this and other interesting areas of starting businesses in India.. also I plan to write posts on my experience over years in helping people operate or handle their businesses... in the context of Indian companies only.If you have something to share/add/suggest, you can email me at harish.palaniappan @ Email from Google and I will find time to discuss with you and add your information and experiences in this blog as well.Information On Companies, Acts, and processes in IndiaMay be these links help to kick-off your information collection drive:Starting your own business in IndiaForming a company in IndiaStarting a business - by doingbusiness.orgThe Indian Ministry of company affairs websiteStarting a business in singaporeMCA21 : Online company registrations and other e-form processesThe Indian ministry of company affairs has setup an online governance website since september 2006 (delayed by almost 6 months) with the help of Tata consultancy services.* Note: Before you read further, understand that this post is not updated regularly when the ministry of companies of india's policies or processes change.. so you should look at this as a starter only.. and do find for yourself more information at the Registrar Of Companies offices around India.. or in the mca21 website.Types of companies:In the different types of companies that can be registered (or that can be created in India at all legally), there's no possibility of starting a single person company.. At a minimum, you can only start a private firm with 2 directors.But, the government has been recommended by an expert committee, to add a new class of companies which is proposed as 'One person company' and probably may have OPC Pvt. or OPC Pvt. Ltd. as the ending name of the company.If this recommendation is approved (which probably will be by amendments in the companies Act), then there will be a possibility of registering One Person companies in India. As of now, you atleast make a friendly legal entity as a director apart from yourself, like your mother or wife, or some friend, and register your company as a Private company with minimum 2 directors.Though it is technically bad that India hasn't still recognized 'one person companies', practically it is better to register as a private company since that will avoid further paper work when your 'one person company' grows to have employees which then requires a conversion in your registration or possibly re-registration.-- continuted --If you are a small enterpreneur, as it happens always, and probably into Software solutions, planning to be a product-based company, or services-based company, thinking of selling your software products / services within India or abroad, then registering your company as a Private firm with 2 directors would do. But this would allow you only to do business within the country. For legally allowing yourself to attract foreign currency through sales or service costs, all you need is an Import/Export number/code (costs somewhere less than 2000 rupees i heard...this number you will quote later while filing your filing your returns.. for foreign currency revenues)...but registering as a private company seems to be the first job to do.To register a private company:1. You can do everything onlineDoing the process online means, you download forms, fill them up digitally using adobe acrobat reader software, attach your digital signature and submit it in submission page on Ministry of Corporate Affairs The website says it will give you service request number for every such submission and you can track status of application online with that number. Also, if a form is rejected and if it is put in 'resubmit with proper information' or something like that, then without additional cost you can refill and resubmit under the same request number.1. Get DSC (digital signature):For all this you need a digital signature. Since there is no paper involved you can only sign digitally.. and only legal and secure method is through digital signatures which are given unique to every person who buys one.Note that the digital signature has nothing to do with your manual signature, it is some very very long and undetectable code provided to you as a file through email or in a thumb drive like storage media.And yes, keep the file or DSC media safe once you buy, because anybody can just steal this file and attach your digital signature to all documents that accept digital signatures (which is only company incorporation or name change or efiling forms today.. but later many other processes in life, for example filing company returns, also might start being computerized and accepting digital signatures)You buy DSC from Digital Ceritifying Authorities in India like MTNL (delhi and mumbai), TCS(all over india), and otherslisted here.While visiting the above websites you will see that there are different classes of digital signatures, and might be confused on which one to buy. The one that is minimum required for our discussion is 'Class 2 individual' or higher classes but something that is for an 'individual'. It is worthy to note here that, 'Class 1 certificate for individuals' which is a basic type of dignital certificate, is for 'individuals' but this DSC is not given based on proof of identity or proof of address.. so the government may not accept 'Class 1 certificates'.Recommedation: Buy a 'Class 2 individual' certificate.2. Get DIN (Directory Identification number):This is probably the only low cost process in incorporation. It costs 100 rupees to get yourself registered as a director (or going-to-be-director) of some company within india.Seems like anybody can apply for a DIN, provided you have any of these.. driving license/passport/elector ID, which is a valid proof of identity, and proof of address.The step-by-step process of getting a DIN is given hereRemember to get a DIN for your mom / wife / partner also if you plan to ask them be the second director of your small company.MCA User RegistrationTo submit forms, on the MCA website, you need an identity on the website.For now, since you may not have a DIN and DSC, you can register as an individual, using the 'New user registration' link on Ministry of Corporate Affairs . Then you can login with your password just like in yahoo mail or hotmail.After you get a DIN and DSC, re-register as a Business professional, using the same link.. and then on you will use your DSC to login to the website.3. Form 1A - Company name availability and blocking.This application is for blocking the name of the company you want to register.All forms that we are talking about in this or other steps are available hereBefore you download and fillup form 1A, you should check whether your company name is available through this pageFill up form 1A, with 2 DINs, affix your DSC, if you have to attach any documents scan them and attach them as files in the end of the form as applicable. Then submit the form. Note your request number and track the form until it is approved. We are almost half done.The above 3 items are the main items and all or most processes below can be done simultaneously.4. Role CheckThis is a simple process where a DIN and DSC are matched and verified to be of the same person, and also that this person is a valid signatory of the company.I am not sure, but this process might be neccessary only for efiling of tax or returns.. not for incorporation..Details about this step is here. http://mca.gov.in/MinistryWebsite/dca/rolecheck/rolecheck.html5. Form 1 - Incorporation Application:Download Form 1, fillup, attach digital sign and submit.6. Form 18 - Office address formDownload Form 18, fillup, attach digital sign and submit.7. Form 32 - DIN appointmentDownload Form 32, fillup, attach digital sign and submit.Steps 5, 6, 7 constitute the main parts... and if the Forms 1, 18 and 32 are approved, you will get a CIN or company identification number which you should quote alongwith your Company's PAN number (apply for one, if you don't have), in all future forms like tax forms, name change or address change forms.The overall cost of registering a private company with 2 DIN's through online mode, could cost as less as 2500 Rupees.. but this estimate can increase based on your capital investment which you will mention in Form 1A and others.As mentioned earlier,All forms are available hereAll process applications should take only a few days to be processed.All above processes might not have their old manual form filing methods sooner and everything will become digital because the ministry of company affairs is overwhelmed by its data, and is strongly being computerized. Already tax forms I think, are no more accepted in paper and government has recruited filing officers who help those who are not able to use a computer and do the process digitally.All above processes are part of a system called MCA21 and is managed and authorized for use by the ministry of company affairs and all its registrar of companies (RoC) offices.Initially, me and my friend hired a consultant for doing my friend's company's Registration(/Incorporation).Though this consulting company does it through Ministry of Corporate Affairs website only, they put in their experience of dealing with government processes.But, yes, you don't need to hire a consultant if you have the time to do it online, and if you know people who can attest your proof of identities (a gazetted officer), and if you know some lawyer who has authority to notarize with his signature anything that you produce on a stamp paper.Our consultant, was an authorized 'Company secretary'. It seems Ministry of Company affairs (MCA) has training and certifications for 'company secretary', which people take up and get authorized/certified (by the govt.) to provide these services to people. Company secretaries are obviously people authorized to do more than just incorporation.. like handling disputes between directors of companies, handling buyouts of companies, and many other things like that.. which require people with legal and indian acts and policy knowledge to do it.For us, our consultant would take care of verifying all documents, getting them attested, getting any legal papers notarized, and submit them through Ministry of Corporate AffairsCertain processes are easy.. and you can go to a consultant after these processes and save a few thousands in fee.For example, if you are a techie, and understand browsing and related technologies, then you are actually better than the consultant for getting your digital signature... and this one thing itself could save you more than 500 rupees. because I understand consultants cost 700 - 1500 rupees for filing your DSC application itself.Digital Signature:Just apply for a digital signature as mentioned above.. in TCS or MTNL websites.They will ask you to send some documents to a verification authority.The verification company will just verify your id proof and address proof and send you a digital signature kit with an eToken.An eToken is a protected pen drive/flash drive/usb drive, in which you can't do any data transfer but it will have your digital signature in it and when you insert it into any PC usb key, it installs the signature on the machine...not everything.. just the general part of it. you have to keep the key on the machine until you sign documents and remove it after.This kit and the digital signature costs 1,200 rupees for two years of validity.. (cost from TCS)If you apply from your machine, yourself, you will pay 1200 to the verification authority. nothing else. But if you use a consultant, he will do the online part also for you (assuming you are not the tech friendly person) and charge you twice or even more than the actual cost.Form 1A, and DIN application:These two forms are the initial steps, and probably easy steps for incorporation.Form 1A:Ministry Approval of Form 1A that you submit, means your company name and location is approved and you can start incorporation process. The name is valid only for 6 months and you should incorporate within 6 months.. or you can renew the name for another 6 months. The cost is a flat price of 500 rupees payable on http://Ministry of Corporate Affairs through credit card.If you are starting a software company, Form 1A will have no problems.. since the ministry won't question your address of manufacturing. Other businesses might have problems if the ministry feels your address is a residential area and you business is not proper to be there.. or things like that.In Form 1A, you have to give 6 or 7 company name choices.You type names... likeSample solutions Pvt., Ltd.,Sample software solutions Pvt., Ltd.,Sample Pvt., Ltd.,One of it gets approved.Director Identification Number (DIN):In India, to incorporate a company you need minimum two directors.. (yes, the law is outdated, and only recently government is considering recommedations that single person companies should be allowed to register)If you don't have another director, pull some friend you like.. or easier, get your mother or father as another director. So, atleast two directors should apply for and get a DIN to register the company under them. Later you can always change your directors, company name, address, anything.. just by submitting that form or application alone...and ofcourse paying for that change alone.If you are two or more people who will be directors, and if all of you have a valid passport, no other proof is required for submitting to government anywhere in the full process. A valid passport stands proof for name, address, and father's name most of the time... and the company affairs ministry seems to approve all applications with passport as proof for people, very smoothly.You don't need a consultant for submitting DIN if you follow the instructions clearly on the DIN pages that the ministry has.I think on Digital signature, and DIN .. ministry's website is clear.. and process itself is clear and easy to do by anybody who has used software like browsers, adobe acrobat, etc.,After two DIN's get approved, you can use the DINs and DSC of one director to apply for the actual, main, important form .. FORM 1. .. so this is why the first form we submitted was called FORM 1A (I was wondering why isn't called form 1 if its the first step in incorporation)For Form 1, we need the following.1. Form 1A approval (approving the name of the company)2. DIN numbers of directors (minimum two directors for pvt. ltd. company)3. Articles of Association (a stamped paper agreement signed by directors stating their claims of part ownership of company, has all about holding of shares, how they could be sold, how they could be bought back, blah blah..)4. Memorandum of Association (again a stamped paper document signed by directors stating what all are the objectives of the business, what all they want to sell/buy/resell/import etc., through the operations in the business, what all rights they will exercise in doing the business like renting space/real estate, having employees, etc., blah blah.. important part will be statement of objectives of business.. its like asking for incorporation only to do business on these lines.. if the operations or objectives change, you have to change the memorandum and resubmit for approval until which you can't do the new business)5. Form 18 stating the address of registered office of the company. (a simple form)6. Form 32 stating the DIN numbers of directors of the company. (a simple form)Sample word document templates for 3. and 4. can be downloaded from here (3) and here (4).Before you download, check up whether the ministry website has latest template of these files downloadable there.. as of this writing the ministry website hasn't put a link since this is a legal document and obviously it is a very important step which needs complete understanding by the person before signing it. The links above are provided only for you to have access to samples so you can read in detail before you get into doing it. Also, if you get to read, the 'Memorandum document (4)' read the 'objects' part carefully, because it says what you want to do with your business and you know this better than your consultant.Submitting Form 1 means, submitting all the above.In submitting Form1, you will need a consultant or help with the text from a Chartered Accountant, or company secretaries, or simply referrence documents from friends who have already done this.That's if.. you submit Form 1 digitally scanned and signed with the digital signature of one of the directors, through Ministry of Corporate Affairs... originals also have to be submitted to the registrar of companies.While submitting Form 1, you have to pay a registration fee which is based on a slab for the capital you are mentioning.. minimum capital is 1,00,000 rupees.. I mentioned just that, and the fee was 4,800 rupees for that.. (so that means it takes a minimum of 4800 rupees for registering a private limited company in India, not like I thought earlier that it could be done with around 2500 rupees).Government generally approves Form 1 submission in 1 day after the originals are submitted.Sometimes if the objectives of business stated in the memorandum is not clear / the AOA (3) or MOA (4) documents have mistakes / incomplete, then the registrar office raises a query or asks for deletion of objectionable points, or asks clarifications.. and the form has to be resubmitted if changes are made.. and I believe you don't have to pay again for corrections but I am not sure. For this part, probably being proactive, my consultant took a power of attorney from me and my mom for doing such changes himself, if they are raised, and to resubmit the memorandum himself without signatures from the directors (me or my mom).Once, your Form 1 is approved, within a day or two you will receive an email with a one page pdf certificate of incorporation(unsigned) with a Company Identification Number (CIN).. probably they will send an original signed one later which I am yet to receive.Actually, you should start business transactions, only after you receive this certificate.. though it happens usually that everybody does registration or incorporation a couple of years after starting business.Import / Export Code - IEC:After Registering the company, a software solutions provider, who wants to be able to provide services to foreign clients, or sell products online to people outside India, MUST apply for an Import/Export license.Bank account:For getting IEC, you need to have a current account in a bank under your new registered company's name. The bank will obviously ask your documents of company registration. Other than that, the bank will ask you a 'Board Resolution' from your company, signed by all registered directors of the company, authorizing one or more of the directors of the company to open and operate the account in the company's name. The board resolution is just a letter/statement from the people who represent the company, but some banks like it in a specific format and you can ask the bank to give you the board resolution format if they have. Some banks even have this format downloadable on their websites 'corporate banking' sections.The current account, will also be useful for you to do transactions in your company's name, which is a MUST for accounting your company's cash flows. Also, you will be able to accept payment from your clients in the name of your company through Cheques, direct wire transfer, etc., which clients will like since they will understand that your company is a permanent entity, and you are not somebody who takes money and can go missing.IEC application process is simple:You get an application form from the Zonal director general of Foreign Trade.. or download from their website (like their Tamilnadu/Chennai office website).Major attachments to this process are:1. your company registration form,2. a letter from your bank attesting that a current account is held under your company's name operated by one of the director's of the company, and the bank should attest in the letter the photographs of the directors of the company.The zonal director's office will guide and help you in the application process by rejecting the application with corrections mentioned clearly for you to correct and re-submit, each time you do it.Some consultants take close to 3000 rupees to do the IEC process.. my recommendation Do it yourself if you have not done this before, you will like to know and be clear of what is happening.

Starting a business entails understanding and dealing with many issues legal, financing, sales and marketing, intellectual property protection, liability protection, human resources, and more. But interest in entrepreneurship is at an all time high.Understand the Commitment and Challenges Involved in Starting a Business:· Coming up with a great and unique product or service· Having a strong plan and vision for the business· Having sufficient capital and cash flow· Finding great employees· Firing bad employees quickly in a way that doesn’t result in legal liability· Working more than you expected· Not getting discouraged by rejections from customers· Managing your time efficiently· Maintaining a reasonable work/life balance· Knowing when to pivot your strategy· Maintaining the stamina to keep going even when it’s toughProtect Your Personal Assets by Forming the Business as a Corporation or LLC:· Always use the corporate name· Always use proper signature· Follow all corporate formalities· Make sure to keep funds separate· Make sure to keep taxation separate· All transactions made by the corporation should be clearly separate from any individual transactions.Come Up With a Great Name for Your Business· Avoid hard-to-spell names.· Don’t pick a name that could be limiting as your business grows.· Conduct a thorough Internet search on a proposed name.· Get a “.com” domain name (as opposed to “.net” or another variant).· Conduct a thorough trademark search.· Make sure you and your employees will be happy saying the name.· Come up with five names you like and test market the name with prospective employees, partners, investors, and potential customers.Focus on Building a Great Product—But Don’t Take Forever to LaunchWhen starting out, your product or service has to be at least good if not great. It must be differentiated in some meaningful and important way from the offerings of your competition‎.Everything else follows from this key principle. Don’t drag your feet on getting your product out to market, since early customer feedback is one of the best ways to help improve your product.Of course, you want a “minimum viable product” (MVP) to begin with, but even that product should be good and differentiated from the competition.Build a Great Website for Your Company· Check out competitor sites.· Start by sketching out a template for your site.· Come up with five or six sites you can share with your web site developer to convey what you like.· Be sure the site is search engine optimized (and thus more likely to show up early on Google search results).· Produce high-quality original content.· Make sure your site is optimized for mobile devices.· Make sure the site loads quickly.· Keep it clean and simple; visual clutter will drive visitors away.· Make sure you have a Terms of Use Agreement and Privacy Policy (and comply with the European GDPR rules).· Make the navigation bars prominent.· Obtain and use a memorable “.com” domain name.· Make the site visually interesting.· Make sure it’s easy for site visitors to contact you or buy your product.Perfect Your Elevator Pitch· Start out strong.· Be positive and enthusiastic in your delivery.· Remember that practice makes perfect.· Keep it to 60 seconds in length.· Avoid using industry jargon.· Convey why your business is unique.· Pitch the problem you are solving.· Invite participation or interruption by the listener—this shows they are interested and engaged.Make the Deal Clear With Co-Founders· How is the equity split among the founders?· Is the percentage of ownership subject to vesting based on continued participation in the business?· What are the roles and responsibilities of the founders?· If one founder leaves, does the company or the other founder have the right to buy back that founder’s shares? At what price?· How much time commitment to the business is expected of each founder?· What salaries (if any) are the founders entitled to? How can that be changed?· How are key decisions and day-to-day decisions of the business to be made? (by majority vote, unanimous vote, or are certain decisions solely in the hands of the CEO?)· Under what circumstances can a founder be removed as an employee of the business? (usually, this would be a Board decision)· What assets or cash does each founder contribute or invest into the business?· How will a sale of the business be decided?· What happens if one founder isn’t living up to expectations under the founder agreement? How will it be resolved?· What is the overall goal and vision for the business?· If one founder wants to leave the business, does the company have the right to buy back his or her shares? At what price?Obtain a Tax IDIn most instances, you will need to get a tax ID from the IRS for your company. This is also known as an “Employer Identification Number” (EIN), and it’s similar to a Social Security number, but for businesses. Banks will ask for your EIN when you open a company bank account. You can get an EIN online through the IRS website.Set Up a Good Accounting and Bookkeeping SystemYou will need to set up a bookkeeping/accounting system to keep track of your finances, income, expenses, capital expenditures, EBITDA, profit and loss, etc. This is important in order to understand your business’s cash flow situation and also for tax-filing purposes.Perform a Comprehensive Reference Check Before You Hire an Employee· Verification of job titles and dates of employment· Verification of educational degrees and dates of attendance at schools· Verification of starting and ending salary· Verification of prior job role and responsibilities· Inquiry as to why the applicant left the prior employer· Conversations with prior supervisors as to the applicant’s strengths and weaknesses· Inquiry as to the applicant’s ability to get along well with other employees and customers· Inquiry as to the applicant’s ability to take on the new role· Inquiry as to punctuality or absenteeism issues· Reference checks with other people not listed by the applicant as a referenceUse a Good Form of Employee Offer Letter or Employment Agreement· The job title and role of the employee· Whether the job is full time or part time· When the job will commence· The salary, benefits, and any potential bonuses· Whether the position is “at will” employment, meaning either party is free to terminate the relationship at any time without penalty (although employers may not terminate employees for legally prohibited reasons, such as for age discrimination or retaliation from sexual harassment allegations, etc.)· Confirmation that the “at will” agreement may not be changed unless signed by an authorized officer of the company· Confirmation that the employee will need to sign a separate Confidentiality and Invention Assignment Agreement (described below)· If the company chooses, a statement that any disputes between the parties will be resolved solely and exclusively by confidential binding arbitration (also discussed below)· Any stock options to be granted to the employee and the terms of any vesting (details usually laid out in a separate Stock Option Agreement)· The supervisor to whom the employee will report· Protective language stating that the offer letter constitutes the entire agreement and understanding of the parties with respect to the employment relationship, and that there are no other agreements or benefits expected.Make Sure All Employees Sign a Confidentiality and Invention Assignment Agreement·The employee may not use or disclose any of the company’s confidential information for their own benefit or use, or for the benefit of others, without authorization.· The employee must promptly disclose to the company any inventions, ideas, discoveries, and work product related to the company’s business that they make during the period of employment.· The company is the owner of such inventions, ideas, discoveries, and work product, which the employee must assign to the company.· The employee’s employment with the company does not and will not breach any agreement or duty that the employee has with anyone else, nor may the employee disclose to the company or use on its behalf any confidential information belonging to others.· Upon termination of employment, the employee must return any and all confidential information and company property.· While employed, the employee will not compete with the company or perform any services for any competitor of the company.· The employee’s confidentiality and invention assignment obligations under the agreement will continue after termination of employment.· The agreement does not by itself represent any guarantee of continued employment.Consider the Steps You Should Take to Protect Your Intellectual Property· Patents· Copyrights· Trademarks· Service Marks· Trade Secrets· Confidentiality Agreements· Confidentiality Agreement for Employees and Consultants· Terms of Service and Privacy PolicyBecome a Strong SalespersonIf the business is to become successful, you must become a great salesperson. You are going to have to learn how to “sell” your business not only to customers but also to prospective investors and even to potential employees.Understand Financial Statements and Budgets· What are the company’s three-year projections?· What are the key assumptions underlying your projections?· How much equity and debt has the company raised, and what is the capitalization structure?· What future equity or debt financing will be necessary?· How much of a stock option pool is being set aside for employees?· When will the company get to profitability?· How much “burn” (losses) will occur until the company gets to profitability?· What are your unit economics?· What are the factors that limit faster growth?· What are the key metrics that the management team focuses on?Market Your Business Like Crazy· Learn the fundamentals of SEO (search engine optimization) so that people searching for your products and services online might find you near the top of search results.· Use social media to promote your business (LinkedIn, Facebook, Twitter, Pinterest, etc.).· Engage in content marketing by writing guest articles for relevant websites.· Issue press releases for any significant events.· Network continually.Use Consultants and Freelancers to Supplement Your TeamAt the early stages of your startup, you will likely want to have a small employee team to minimize expenses. A good way to fill in for specialized expertise is to use freelancers or consultants.That way, you avoid taking on employee costs and benefits payments. And there are a variety of sites that can help you access freelancers, such as Freelancer.com, Guru.com, and Upwork.com.Have a Great Investor Pitch DeckPitch Deck Do’s· Do include this wording at the bottom left of the pitch deck cover page: “Confidential and Proprietary. Copyright by [Name of Company]. [Year]. All Rights Reserved.”· Do convince the viewer of why the market opportunity is large.· Do include visually interesting graphics and images.· Do send the pitch deck in a PDF format to prospective investors in advance of a meeting. Don’t force the investor to get it from Google Docs, Dropbox, or some other online service, as you are just putting up a barrier to the investor actually reading it.· Do plan to have a demo of your product as part of the in-person presentation.· Do tell a compelling, memorable, and interesting story that shows your passion for the business.· Do show that you have more than just an idea, and that you have gotten early traction on developing the product, getting customers, or signing up partners.· Do have a soundbite for investors to remember you by.· Do use a consistent font size, color, and header title style throughout the slides.Pitch Deck Don’ts· Don’t make the pitch deck more than 15-20 slides long (investors have limited attention spans). If you feel you need to add more information, include it as an appendix.· Don’t have too many wordy slides.· Don’t provide excessive financial details, as that can be provided in a follow-up message.· Don’t try to cover everything in the pitch deck slides. Your in-person presentation will give you an opportunity to add and highlight key information.· Don’t use a lot of jargon or acronyms that the investor may not immediately understand.· Don’t underestimate or belittle the competition (and never say “we don’t have any competition”).· Don’t have your pitch deck look out of date. You don’t want a date on the cover page that is several months old (that is why I avoid putting a date on the cover page at all). And you don’t want information or metrics in the deck about your business that look stale or outdated.· Don’t have a poor layout, bad graphics, or a low-quality “look and feel.” Think about hiring a graphic designer to give your pitch desk a more professional look.Drive Traffic to Your Website· Pay Google, Bing, Yahoo, or other search engines to send you traffic (such as through the Google Adwords program).· Build a great site with lots of high-quality, original content that is search engine optimized.· Have a smart social media plan to drive traffic from Facebook, Twitter, LinkedIn, and other free social media sites.· Get links to your site from high-quality sites.Make Sure Someone Hasn’t Already Invented Your Great New Idea· Do a Google search on the keywords associated with your invention.· Do a search online of the U.S. Patent and Trademark Office at United States Patent and Trademark Office.· If nothing comes up and you want to get a patent for your idea, hire a patent lawyer.Don’t Go Overboard on a Business PlanIt’s useful to come up with a business plan to think through what you want to do for the development of the product or service, marketing, financial projections, and more. And you should then get input from trusted business and finance advisors. But don’t go overboard with a 50-page business plan.Secure Capital to Finance Your Business· Personal funds· Credit cards· Friends and family· Angel investors (see Angel Investing: 20 Things Entrepreneurs Should Know)· Crowdsourcing sites such as Crowdfund Innovations & Support Entrepreneurs and Kickstarter· Bank loans/SBA financings/online lenders· Venture capitalists· Equipment loan financingDetermine Which Permits, Licenses, or Registrations You Will Need for Your Business· Permits need for regulated businesses (aviation, agriculture, alcohol, etc.)· Sales tax license or permit· Home-based business permits· City and county business permits or licenses· Zoning permit· Seller’s permit· Health department permits (such as for a restaurant)· Federal and state tax/employer IDsSet Up Appropriate Books and Records for Your Business· Financial statements (P&L, balance sheet, cash flow)· Employee records· Board and stockholder minutes and consents· Stock and options ledger· Tax filings and records (federal, state & local income, sales and property taxes)· Secretary of State filings (Certificate of Incorporation, annual filings, etc.)· Invoices & contracts· Bank accounts· Creditor recordsProperly Insure Your StartupWhile shopping for insurance, you will want answers to these types of key questions:· What are the deductibles?· Are the coverage limits high enough?· What items or occurrences are excluded from coverage?· Are there any gaps in the coverage?Here is a list of the types of insurance that may be appropriate for your business:· General liability insurance· Product liability insurance· Professional liability insurance· Property insurance· Worker’s compensation insurance· D&O (directors & officers) insurance· Health insurance for employees· Business interruption insurance· Commercial auto insurance· Data breach/cybersecurity insurance· Key man life insuranceDetermine How to Divide Equity Among the Startup’s Co-Founders· The relative value of the contributions of the co-founders· Vesting dependent upon continued participation in the business (you don’t want to give away 25% of the company to someone who leaves after a few months)· The amount of time to be committed to the business· The cash compensation to be paid as an employee· Whether the co-founders will be contributing cash as an investment in the business· Whether one person wants to maintain control over decision-makingUnderstand These Key Points About Seeking Venture Capital Financing· Specific industry sectors (software, digital media, semiconductor, mobile, SaaS, biotech, mobile devices, etc.)· Stage of company (early-stage seed or Series A rounds, or later-stage rounds with companies that have achieved meaningful revenues and traction)· Company location (e.g., San Francisco/Silicon Valley, New York, etc.)Pay Attention to Your Business Contracts· Describe all obligations they are expected to fulfill.· Describe all obligations they expect the other party (or parties) to fulfill.· Limit any liabilities.· Set parameters, such as a time frame, in which the terms of the contract will be met.· Set terms of a sale, lease, or rental.· Establish payment terms.· Clearly establish all of the risks and responsibilities of the parties.The key contracts that a startup should have as its own form of “standard contract” include:· Sales or service agreement· License agreement· Offer letter to employees· Consulting agreement with any independent contractors (you want to make sure that you will own the intellectual property rights for anything they develop for your business)· Confidentiality and Invention Assignment Agreement for employees and independent contractors· Non-disclosure agreementIf You Plan to Lease Office Space for Your Business, Focus on These Key Issues· Length of lease term· Tenant improvements· Rent and rent escalations· Repairs, improvements, and replacements· Assignment and subletting· Try to avoid one-sided lease provisions.· Consider using a tenant brokerThoroughly Research Your Competition· Who are the company’s principal competitors?· What traction have those competitors obtained?· What gives your company the competitive advantage?· Compared to these other companies, how do you compete with respect to price, features, and performance?· What are the barriers to entry in your market?If You Are Seeking Angel Investing Financing, Know These Important Points· The quality, passion, commitment, and experience of the founders· The market opportunity being addressed and the potential for the company to grow to become very big· A clearly thought out business plan and early evidence of early business traction· Interesting intellectual property or technology· A reasonable valuation for the company· The likelihood of the company being able to raise additional financing in the future if progress is madeAngel investors will want to initially see the following from a startup:· A clearly articulated elevator pitch for the business· An executive summary or investor pitch deck· A prototype or working model of the company’s product or service· Early adopters, customers, or partnersThere are a variety of ways to find angel investors, including:· AngelList· Venture capitalists· Investment bankers· Lawyers· Accountants· Other entrepreneurs· Crowdfunding sites like Kickstarterand IndiegogoConsider Adopting a Stock Option Plan to Attract and Motivate Employees· XYZ, Inc., hires employee John Smith.· As part of his employment package, XYZ grants John the option to acquire 80,000 shares of XYZ’s common stock at 25 cents per share (the fair market value of a share of XYZ common stock at the time of grant).· The options are subject to a four-year vesting period with one-year cliff vesting, which means that John has to stay employed with XYZ for one year before he gets the right to exercise 20,000 of the options. The remaining 60,000 options then vest at the rate of 1/36 a month over the next 36 months of his employment.· If John leaves the company or is fired before the end of his first year, he doesn’t get any of the options.· After his options are “vested” (become exercisable), he has the option to buy the stock at 25 cents per share, even if the share value has gone up dramatically.· After four years of continued employment, all 80,000 of his option shares are vested.· XYZ becomes successful and goes public, and its stock trades at $20 per share.· John exercises his options and buys 80,000 shares for $20,000 (80,000 x 25 cents).· John turns around and sells all 80,000 of his shares for $1.6 million (80,000 x the $20 per share publicly traded price), making a huge profit of $1,580,000.Focus on Offering Exceptional Customer ServiceCompanies such as Zappos and Virgin America became hugely successful because they focused on providing excellent customer service and support. You want your early customers to give referrals and sing your praises to their friends and colleagues.Hire an Experienced Startup Attorney· Incorporate· Draw up contracts with any co-founders· Prepare key agreements for the business· Set up a stock option plan for employees· Guide you through potential HR landmines· Prepare protective offer letters to prospective employees· Help you negotiate terms with prospective investors· Limit your potential legal liabilities· Protect your ideas and inventions (through copyrights, patents, and non-disclosure agreements)Get Comfortable With Public SpeakingThe ability to communicate effectively can be critical to landing customers, inspiring employees, and pitching to investors to raise capital. Most people are not very good at public speaking and many are even afraid of it.You must strive to overcome this fear. Consider working with a public speaking or business coach to improve your public speaking skills.There was a ton of information in this article, so if you have any questions, just leave me a comment below, please do upvote, share and support.Thank you