Analyst Report: 6 steps for scaling a startup

Analysis

Establishing a startup’s business infrastructure early — that is, establishing support in the areas of legal, accounting, tax, insurance, and human resources (HR) — provides a number of critical benefits, including:

  • Minimizing risk
  • Increasing efficiency
  • Standardizing contracts
  • Quickly processing one-off contracts and special circumstances
  • Safe harbors
  • Advice on new business practices and new jurisdictions
  • Providing a sounding board
  • Facilitating tax benefits and avoiding tax problems
  • Building wealth (e.g., founders’ ownership and intellectual property rights)
  • Smoother financings
  • Effective employee management (i.e., avoiding employment-law issues)

Sections of this paper discuss each of the above benefits and provide suggestions for management teams that will facilitate establishment of an appropriate infrastructure.

Note: The situations described in this note are given only to illustrate concepts and should not be taken as providing legal, tax, or accounting advice.

 

Table of Contents

  1. Summary
  2. Motivations for establishing infrastructure early
  3. Building an infrastructure
  4. Summary and key takeaways
  5. About David MacMillan
  6. About GigaOM Research

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