Turning Your Start-up Company Into a Legit Corporation
Your start-up is going great and you’re ready for the next step. Most often the need for change and growth comes on fast and creates pressure in decision making. When you have key players on your team when making what they could deem as restricting changes (with new rules and regulations) which becomes even trickier to navigate. It is important when sailing the corporate seas of change not to rock the boat so much that your crew members fall off the ship. Going corporate doesn’t have to be equated with not caring about your employees as individuals.
It is inevitable that both internal affairs and external procedures will require some fine tuning to ensure that your company makes a successful transition into the corporate executive world. Internally as a “fast growing start-up company, you will want to make sure your legal Identity is the proper designation. Establishing your company as a LLC, S Corp, Partnership, is as important as giving your company a name, to avoid being picked on, it’s best to choose wisely. If you are uncertain about the benefits and disadvantages or liabilities, it is best to consult a legal professional or attorney.
Contracting with a payroll service to withhold taxes and do quarterly filings and year end reporting is a necessity in being a professional and recruiting qualified team members or employees. While having the proper insurance in place is an obvious requirement where applicable, having benefits, such as 401k, stock options and future investment options are often also offered with payroll service. Some payroll services offer HR, but it’s best not to put your eggs all in one “catch all” basket, something is about to fall through, if not seem completely impersonal.
Keeping your existing team happy involves communication. The operations manual of your business is your employee handbook. Even if there is just one person, this guide will provide concrete information (that can be revised, amended, molded, and updated) for both you and your employee(s). By establishing simple things in the employee handbook, not only time and pay, but job descriptions and expectations, a foundation for communication has been established and both for you and your team. Including guidelines for use of proprietary information, use of equipment, and “virtual assets”, will protect and insure that your employees have not only the tools, but the “user’s guide” as well.
The importance of communication cannot be overstated when going BIG. As an entrepreneur you will need to use your people person skills in order to guarantee loyalty and provide a sense of security and opportunity. If you believe in your company, this should be relatively easy for you. Creating opportunities for your employees to invest in the company and have an invested interest should be part of the big picture. By having weekly progress meetings to track progress, state goals and display transparency during an entrance into the corporate world, you can reassure your existing team that they are an integral part of the crew. Being part of a start-up that is ready to go to the next level is an exciting journey, one where you are the captain and the “master of your fate.”