Startup Issues

Big Boy Expenses for Entrepreneurs

While the stereotypical tech startup entrepreneur is 23 years old, single and has no children, the reality is that many tech startup entrepreneurs are married and/or have children. Don’t avoid “big boy” expenses just because you are bootstrapping. That is, make sure you have (or at least look into obtaining) insurance against life’s big risks … Continue reading

The $10,000 Sentence

You’re in a startup and everything is scarce including capital. Thus, when you encounter a legal issue (like incorporation) you conduct a cost-benefit analysis of hiring a startup lawyer. I understand the need to ensure you are getting value for the small amount of capital you start with — I did the same thing when … Continue reading

November Rain

Axl Rose began working on November Rain in 1983 — a full 8 years before it was released by Guns N’ Roses. Axl came up with a piano-only version of the song early, but by the time 1991 rolled around November Rain was a full-blown hair metal power ballad. Axl realized that what might have … Continue reading

If I Launched a Startup

Here’s what I’d do in the beginning: Incorporation (1) Entity Choice: Corporation or Corporation (2) State of Incorporation: Delaware (3) Authorized Shares in Charter: 10,000,000 Shares (4) Type of Shares: Common Stock (5) Par Value of Common: $0.0001 (6) Initial Founders Issuance: 8,000,000 Shares (7) Founders Equity Split: Depends on the Team, But Quickly and … Continue reading

It Is Not Your Baby Anymore

Many entrepreneurs treat their startup like their baby. And rightfully so. The entrepreneur has likely shed blood, sweat, tears, and some cash on the startup, therefore the entrepreneur wants to keep the startup in its grasp and control at all times. But once you issue equity in exchange for services or investment, your startup isn’t … Continue reading

Oppose Colorado HB 1192

Why don’t federal, state and local governments make it easier for startups to launch, grow and thrive? Colorado’s governor is proposing fast-tracking a software tax to be effective March 1. I realize these various governments need to raise tax revenue. But they end up with asinine and short-sighted “solutions” to do so, since no politician … Continue reading

Facebook is Jackin’ for Vanity URLs

TechCrunch has an interesting story about how Facebook is revoking vanity URLs for violating Facebook’s policies and then giving them to companies. This isn’t your typical namesquatting case because the person’s vanity URL was /harman and the alleged namequatter’s name is Harman. But Facebook still sent Harman a message notifying him that his vanity url … Continue reading