Upand$tarting

A start-up should think about engaging a certain group of professionals early on in the process or at least prior to an initial funding event. Most of these individuals are expensive, but their expertise will prove invaluable from day one. If you don’t plan on taking outside funding or are starting a freelance business, you may not need each of these on your team or may be able to engage them at a later date.

Law Firm – general practice:

This addition is really a no brainer, immediately impactful and dreadfully expensive. On a basic level you need to find someone who has experience advising a start-up and can streamline the fund raising process and document review process. They should be attentive and available at any time you need their expertise.

Law Firm – IP practice:

I firmly believe that your IP should be managed by a specialist and generally from a different firm than your general counsel.

Why, wouldn’t it be easier and more synergistic to have one point of contact for all things legal? Not necessarily, IP is very specialized and you need to seek out representation that is intimately familiar with your product or service and industry.

Additionally, cost is almost always a issue in the early stages and this is one area where specialization will ultimately save you money.

Audit Firm – Start-up Partner:

A lot of start-ups wait until they are forced to engage an Audit Firm before making first contact. My advice is to reach out early. You may not need to have a full-fledged audit performed right away, but it will be a condition of most funding events.

Involving an Audit Partner, specifically one with start-up experience will allow you to avoid most GAAP related pitfalls from the beginning and will provide you with crucial contacts early on.

Insurance Agent:

Not necessarily on everyone’s short list, but, a good Insurance Agent is worth his weight in gold. From making sure your company is adequately covered for property & liability insurance to setting up a complete and competitive employee benefit package, the right Agent will immediately provide value.

I was working with a web company that was planning to launch at a trade show in the LA Convention Center. The company didn’t just want a booth, they decided to rent a WWII Army tank and use it as their booth. Of course, the insurance requirements were pretty severe. My trusty agent didn’t blink an eye when I mentioned what I needed – they took the initiative and contacted the convention center, figured out what I needed and wrote the policy.

Recruiter:

Yes, Recruiters are expensive. Sure, you’re company may be able to make quite a bit of progress without ever having to actively recruit for openings. Network and find a good Recruiter anyway and keep him in the wings.

Every hire in a small, early stage venture has the capacity to make or break the company. Most founders are way too busy and way too inexperienced to manage the recruiting process. I’m not advocating that you use a recruiter or agency for all positions, just considerate for the early, critical hires where fit and experience are equally important.

Payroll Service:

O.K., this last one is not a true partner, but a service that you need to implement right away. Payroll, taxes, and reporting are a maze of confusing regulations and deadlines. For short money, let one of the major services take care of this for you. Engage as soon as you have employees.

There you go. You’ve given yourself a strong cadre of professional advice and expertise. Even though you may consider these recommendations to be an expensive proposition at first, the number of mishaps and mistakes you can avoid will save you tenfold in hindsight.

What’s next? Who do you have on your bench? I don’t believe this list is exhaustive and I have a second group of individuals that I will introduce you down the road. I’ll also provide tips and checklists on how to select the right professionals to pave the way for your success.