joshuaellinger

   2. Find out how established your sponsor is at the company before investing too much effort in this deal.
   Have they made purchasing decisions like this?  Who would have to sign off on this deal?  Does it help 
   them with one of their top 3 goals for the year?  Just because you are talking to someone from a big
   company that doesn't mean they can actually write you a check.

   3. Get a copy of their MSA (master services agreement) and make sure they not expecting ownership
   for derived work.

   4. Everything costs x3 and takes x2 as long as you think it will.  Always does.  Plan accordingly.

   5. Don't hire a business guy to run the business.  It's your baby -- change the diapers yourself.  It 
   really isn't that hard and you can hire consultants to do finance and legal.  If you need sales, 
   think lead-gen.  You personally will close every sale at this scale.

   6. Hire someone who's entire job is to do client management.  Get someone good and pay them a lot.  
   Build that into your price.

    1. You need a C corp if you want to raise money.  C corps are controlled by a board.  An LLC is controlled
    by a managing partner.  You want one or the other and you don't have to spend a bunch of money to set it up.

    On one business, I used generic paperwork from Techstars, Carta to manage the ownership, and a 
    registered agent to keep my government filings up-to-date.  Took maybe 2 days and costs < $1K/year.

    2. Once you get any scale, you have to pay yourself as an employee and report that as income.  I think you
    can get away with not claiming income at first but the IRS wants its share.  Use a payroll service -- do 
    not write a check for labor directly, even your own.

    3. If you have discrete chunks you can hand you, consultants can work.  Finding good consultants is hard.
    I personally favor direct hires because you get their full attention.

    4. Make sure to have all employees/contractors sign an agreement that gives you clear ownership of the IP.