What should a startup CEO ask?
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This is a serious question to consider when thinking about your start up business, or any business for that matter. A Chief Executive Officer is the most important and key executive in any business. The job of the CEO not only involves putting successful delas together to bring revenue into the company it involves, personnel skills hiring and putting together the right team. After all a company is only as good as its people, so the Chief Executive Officer should put serious work into developing the right team.
The startup CEO should also be asking the right group of board members to come together and oversee the operation. In addition to having a board with the appropriate resources, to back up the business with resources. Nothing could be worse than short changing a start up financially. Why not ask and have the right investor group from day one? That often inculdes the investors playing a role on the board and filling the position of director of the board. The Chief Executive Officer needs to ensure and ask to have the board capable of bouncing off ideas and receiving guidance when necessary. The CEO should be asking the potential board members about their level of experience and education. Along with the degree of their personal and corporate resources as well as access to other resources, in case that becomes necessary for continued development, growth and success. A great question would be the size, revenue and assets of the potential board members corporations that they own outside the startup, they can be a great asset to the startup. That puts the board member in a position for great tax advantage on other income streams, and the opportunity to invest it with their own oversight over the cash. Ask if they would prefer to dispense their money into the startup for added protection and return on investment. Definitely asking for terms going into a deal like that is a great question. At times in a pinch or out of exhaustion growing the business, the Chief Executive Officer asks for the funds, and gets terms after the fact. Always smart to ask first, especially if the CEO does not have controlling interest.
The CEO should ask for an operating agreement as well from the board members and shareholders. This could be the difference between success and failure for the company. Additionally that could be the difference between the Chief Executive Officers personal benefits being worth the venture or not.
The CEO should always ask for equity stake in the startup. After all it needs to be worth it for everyone including the Chief Executive Officer. It also puts skin in the game for the CEO, what a better way for the board and employees to get results!
Creating, speaking, and implementing the organizations imaginative and prescient, task and standard route. Maining the development and implementing the overall company’s approach are important roles of the Chief Executive Officer. The people of the organization and their families depend on it to ensure everyone’s future. The CEO needs to be asking questions to ensure that the future is secure, prosperous and bright for all. It is the job of leading the company into failure or success. The best Chief Executive Officers will ask for the brightest minds to be surrounded with, “success breeds success”. A wise CEO will know not just their heights they will know their limits and ask for help from the right people and or person. Legal is always so critical, and a smart CEO will ask questions in order to retain the best startup legal services. To protect the business, board of directors, shareholders, stock owners and all personnel. And to keep the company running smoothly as possible, for future generations, and for the legacy they are creating.
