To do list for setting a new company (in Israel)

I found my to do list from a previous company. It is not a formal advise but should serve you well in planning. It should also be in the right order of things.

I know it sounds weird these days, but hey, I strongly believe that it is always a good time to start a good, sane, revenue focused business.

I want this list to be a “live” list, so I’ll try to keep it updated and hope you’ll help me.

# 1 always:

find good partners. People who think the same as you, yet bring something you don’t to the table. people who are motivated and experts in what they do, yet give you space to do your thing. People who can commit to the new business as much as you do yet give you perspective and advise on how you work.

Then, layout a plan. know what you want to do, then think how you can do the core essence of it and how it can make you money. What risks you’ll encounter and how to by pass them (usually with the help of people you’ll probably need to get to work with you). Then lay time and budget plan and review with experienced friends and family.

You got the money to start ? (I know I skipped the “how to raise money” part ) ?

Ready ? Lets go.

Setting up:

Choose  a lawyer (not a friend) – sign an agreement for a low monthly retainer and agreement on growth, depending on the company growth.

Choose an accountant firm – sign an agreement for a low monthly retainer and agreement on growth, depending on the company growth.

Choose a book keeper – sign an agreement for a low monthly retainer and agreement on growth, depending on the company growth.

basic agreement and opening a company:

Founders agreement

Company Stamp

Company formation documents (YESOD document in Hebrew)

Open a Company (get an ID) (this also costs money)

inevitable:

Bank account – don’t open a credit line. You don’t want it, you don’t need it. Never give personal guarantees.

Checks – order 3 copies check books.

Don’t issue a company credit card until a> you absolutely have to b>the company is ready to make money or already is

VAT number (you’ll need a bank account for that)

Income Tax number (same as TIK NIKUIM if I got it right)

** update: helpfull link here: http://www.roa.co.il/50095/הליכים-פרוצדוראליים-להקמת-חברה-בעירבון-מוגבל

The Office

Rent agreement – I think a good work is done in an office or similar (like a garage) but not in a coffee shop. Try to keep this expense to a minimum with minimum time of commitment or no guarantees.

Check the city tax (“Arnona” and water)

Check Electricity bill process with renter

Phones (2 lines to start with, Fax and regular)

Internet – service provider

Fax / Copy / Scanner machine (the first and last hardware you’ll need in an office)

Switch, hub, etc – buy second hand.

Computers – I’d say buy new good ones with lots of RAM.

Furniture – try second hand at start

Stationary – keep it low !

Hot / Cold water dispenser

small refrigerator

Insurance for the place

Cleaning the office – get a local person to come for an couple of hours 2-3 times a week and grow from there

Employees , your biggest expense, may they never be “head count” only “The Team”:

Employment agreement template for employees including NDA

ESOP (option plan) – yearly, over 4 years.

Avoid giving telephones – you do not want the long term commitment to the service provider. If you need to, buy phones second hand and limit / cap bill costs.

Avoid giving cars – see phones. Just don’t give cars. Give extra money if you have too and pay train / bus monthly bills.

Employee Insurances (After 3 months cliff)

Setting some rules:

Company process in ordering items or services. No $ is going out without a written approval by CEO (above a threshold you decide).

Other processes relevant like monthly 2 paragraph reports (last month achievements and next month goals), payments only

Handle your money

Cash is king. Not only these days – always. I’ll submit sometime the 2 excels I use to do a 2 year budget and to manage day to day financing status.

Love to get your feedbacks, thoughts and ideas on the above.

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