Why do you need proper startup incorporation?
Kaizen’s guide to startups 101
Imagine this scenario:
You have a great idea that has so much potential! You want to create a successful startup in the MENA region. You receive an email one day after months or even years of effort, sacrifice, and journey to find the right financial investment.
It’s from an angel investor! He’s excited and captivated by your idea, and they want to invest in your business and seek growth together. Sounds interesting, right? And not just that everything works out in the end and you see your dream come true.
One day, you receive a stack of letters and bills, whether they are tax bills or invoices. Shocked and fumbling between the papers stocked on your desk that you never paid attention to, all demanding that payments be fulfilled by the end of this month or else the bank will put their hands on your property or even seize you, your investor is unsatisfied and wants a refund. all because you didn’t have the correct incorporation or even a proper legal structure. And you lose all your revenue to save your idea from venture bankers.
A business requires three things to get off the ground: an idea, money, and time. However, if the ground itself isn’t firm and stable, you’ll lose your footing and fall. That is why proper incorporation, legal and financial structuring of every pillar of your business, having resources and having the proper HR team to fish out the talent that suits you and your startup are the foundations you should lay before moving forward.
Successful startups are organized, have sound business plans, and can take advantage of opportunities in markets with long-term exponential growth.