10 Tips From An Attorney/Developer on Starting Your Tech Company

**1. Don't Just Start. **

Web developers in many ways are like actors and writers: we are all artists. The point is, artists (as we all are) often allow our emotions and enthusiasm to get ahead of our logical thinking. If you are creating your own entrepreneurial coding projects, let me tell upfront: you're a fool if you launch your site or ap to production and start promoting it prior to handling some very important preliminary business and legal issues.

2. Contracts, Contracts, Contracts.

Get it all in writing. If you embark on this project with a friend, or even a contractor you recruit off of craigslist: put the terms of the arrangement in writing. Who owns the code? Who invests what? What's the rate of return? Who has first position, if anyone? Will everyone share in advertising costs? Who contributes what, and how much? Whose name comes first on the website? What happens if there is profit? What happens if you don't break even? All of these questions, and hundreds more need to be asked and answered prior to starting work with ANYONE. Even if it's just on a napkin, if you don't have a contract with everyone you're working with... you... are... an... idiot. <--harsh, but true.

3. Determine the Business Entity

You can always start the business as a sole proprietor just by launching into the stream of commerce, but isn't it better to have a plan, and actually know what legal structure is best for you company? Does it make sense to have an LLC, or is a C Corp better for long-term development? Is there any sense to creating your tech company as a not-for-profit (as we did at www.breakdiving.io), or is a limited partnership the best option? You really need to figure these questions out BEFORE you start.

4. Follow the Legal Formalities

Too often, people start LLCs or Corporations, and then fail to comply with the follow up legal requirements, and end up losing their limited liability or legal protections. Not smart. If you're an LLC, make sure you comply with the newspaper publication requirements, and create proper bylaws. If you're a corporation, make sure you comply with annual and/or quarterly meeting requirements, and write up proper meeting minutes. If you're a foreign corporation, be sure to file the appropriate paperwork each year with the foreign state, or you may lose your entire business license for that state. Become familiar with the legal requirements for your business prior to creating that business entity.

5. Learn Accounting & Bookkeeping

It's great to start a business. It can be a drag to do the finances of an operating business. Yet, if you get sloppy with this, you're opening yourself up to a world of pain, frustration, and possible legal consequences. Take a basic course on small business accounting and bookkeeping before you start. Whether you're making lots of money, or no money, having accurate books is a key to business success. Do NOT outsource this to someone else until you first fully understand how to do it yourself. Skipping this step is how embezzlement happens...

6. Learn How to Lead, Hire, Manage, & Delegate... With Precision

If you launch a business and start bringing on contractors and staff and other coders without knowing how to lead, hire, manage, and delegate, you're going to run into a lot of issues. There's a saying, "Learn how to hire slow, and fire fast." Here's another, this one my own: "You need to know enough to hire and fire people." In other words, if you're just a coder and don't know anything about finance, how are you going to know if your accountant and/or finance people are doing their jobs correctly? You must read books and watch videos on leadership, human resources, management, and delegation. It'll come in handy now, as the company grows, and with any future project you work on too.

7. Don't Quit Your Job... Yet

Too often, people think their idea is so amazing that they quit their job at the first nibble of success from the side project, and 4 months later, they have run out of money, and the company is doing terribly. Simple advice: don't do that. Keep your job and save up $250/month (or more) from your salary into an emergency fund. Keep doing this as you continue to build your business. When you have one year of expenses saved up, AND the business is making enough money for you to live off of, THEN you can quit your job. But not sooner.

8. Don't Act Insane.

Insanity is doing the same thing over and over again while expecting different results. Well, don't do that. Make sure as you create your plan that you create multiple contingency plans, and contingency products, and contingency services, and contingency marketing strategies, etc. If something isn't working, don't keep doing it. Try other things, for maybe doing something different will have better results. At the same time, don't give up on a strategy too quickly, before you've given a chance to shine.

9. Remember That It's Likely NOT Going To Take Off Like a Rocket

Okay, sure, it could. But it's unlikely. Be sure you don't get too depressed when you launch and discover that people aren't racing to sign up. It may take time. Even years. Maybe a decade! How important is success to you? The answer will determine how long you stick with it. And will determine how much effort you put into the marketing that is going to be crucial in getting people to notice your application.

10. Keep Learning

Once launched, make sure you never stop improving. Improving what? Everything: Your coding skills, your devops skills, your marketing skills, your finance skills, your leadership skills, the website's design, the mobile app's design, the features on the site, your customer service skills, and the list goes on. Your motto for yourself (and the company) must be: Always learning. Always improving.

If you follow these ten tips, it will go a long way to helping you avoid making serious beginner mistakes. I wish you great success on your tech entrepreneur journey! I also invite you to do three things:

1. Apply to join our incredibly supportive H.A.C.K.ers community at www.breakdiving.io --> HACK = Highly Ambitious Coding Club!
2. If you need legal, business, or financial help setting up and operating your tech company, or with legal contracts, please reach out to me via www.monroemannlaw.com
3. If you need my help as a code mentor, or want to learn to code, I'm available here on this site for awesome one-on-one lessons!

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Dr. Monroe Mann, PhD, Attorney, MBA, LLM, ME is the lead developer and coding projects manager at Break Diving, Inc. You are welcome to apply to join our unique not-for-profit social media community where a) everyone is required to be nice, b) there is no anger, c) everyone pursues their dreams with a passion, and d) you can find countless other supportive coders on your programming journey. Come read more at www.breakdiving.io and www.breakdiving.org. If you need legal or marketing help setting up and operating your tech company, please visit www.monroemannlaw.com