A great idea does not automatically make a great business. If you haven't started a tech business before, it can be overwhelming.
90% of startups fail - often due to early mistakes that could have been avoided if the founders had been better advised. Others miss out on golden opportunities to raise or make money.
As a founder, you not only have to build your product, you must also assume the legal responsibilities of a director, decide on corporate structures, manage shares, attract investors, protect your ideas from being copied and take your product to market.
Key details deferred or overlooked can cost a fortune in lost tax breaks. Founders can even expose themselves to personal financial losses later.
Most startups have very little cash to begin with and professional help is expensive. But the Catch 22 is that if a company is setup wrong, it can deter the investors typically needed to jumpstart the business.
Making your company more compelling than the next one is the key to winning investment. Typically, investment groups only do deals with a few percent of all the companies that approach them.
Investment can be won or lost depending on early decisions, for example if you've managed your company to be suitable for tax-efficient investment or have taken the correct steps to protect your intellectual property.
The Start Smart Medikit has been compiled to help founders quickly address all the key setup, planning and governance issues that come up time and again with investors, HMRC and Companies House.
It is based on my 17 years of experience working with tech startups (including four of my own). I've drawn together concepts that have worked for me from Lean Startup, Agile Development and more and added in the tools I've developed and evolved over the years to make my life easier.
By providing a clear process and supporting tools, it aims to streamline the process of getting your tech startup into a strong position to attract investors and pass due diligence exercises and minimise legal, financial and intellectual property risks.