Excerpted with permission from Chris McDemus’ blog, VC Deal Lawyer
If there is one consistent theme that I have seen across all startup and emerging growth companies, it’s the complete disarray found in retaining, managing and storing key company documents. This isn’t a virus that affects only certain companies, or only young companies for that matter. I’ve seen this piranha of a problem at every stage of a company’s life cycle, and at small companies and big companies alike. Early on, entrepreneurs focus on matters geared towards de-risking the business (e.g., concept and product development, product/solution fit, product/market fit, customer acquisition and, hopefully, the identification of a repeatable and scalable business and revenue model). History shows that early success (and growth) comes from finding that repeatable and scalable model, not so much from having a well-organized document database. What are great documents if there’s no company, right? In the end, entrepreneurs lean towards what they know, so product and design or “solving the problem” rank towards the top, meticulous document management towards the bottom.
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