# ESOPS are useful mechanism for attracting and retaining employees – even senior executives.
# Hire good people. Even if you can’t figure out their role, they will find out a way to contribute.
# Difficult decision – should you hire a CEO?
# Set up important systems and measures. Publish audited quarterly results within 4 weeks of ever quarter.
# Understand cash flows. Profit is an opinion, cash in Bank is fact.
# Does your data help you make decisions. Align the granularity of your measurement and your decision. Build your own dashboard.
# Avoid borrowing from amateur moneylenders. Do you really need the money? How do you plan to use it ? Can you borrow from your customers?
# VCs can be good but understand their philosophy & motivation. Beyond money, be clear and upfront about what you are expecting.
# Veto rights. VCs will demand – Board composition, change in management, changes in key resources, M&A, Diversification, Dividend.
# Ensure that you have the right capital structure to scale.
# Establish a network of mentors that you trust.
# Leverage your Board and independent Directors.
# Independent Directors are your advisors and critics. Select independent directors effectively. They should be able to commit time, have expertise that align with the needs of business and are passionate about the business you are in.
# Do not choose them because they are famous, or are relatives / friends or customers. Board is formed to protect the interest of minority shareholders, to ensure long term health and to appoint a CEO.
# Exit Option. Merge or get acquired? Read the contract carefully and sign only what you understand. Think long-term and clean business. Consider CSR and contributing to society.
# Attend Board Meetings