NCET Biz Tips: Navigating the complexities of founding a new business

Founding a new business is akin to building a house; it requires a solid foundation, the right specialists, and meticulous planning to ensure sustainability and support for future growth. I am excited for NCET to host Chris Myers, partner at Holland & Hart LLP for this month’s free NCET Biz Café event.

Myers, a seasoned adviser in business law and finance, will be sharing his expertise and will be providing valuable insights for aspiring entrepreneurs.

The journey of starting a business begins with choosing the right entity type. This foundational decision impacts everything from taxation to liability and operational flexibility. During his presentation, Myers will explore various business structures such as sole proprietorships, partnerships, limited liability companies (LLCs), and corporations. Each option has its pros and cons, and Myers will help founders understand which structure aligns best with their business goals and needs.

Financing is another critical aspect Myers will address. Whether seeking capital from traditional banks or outside investors, understanding the nuances of each financing option is crucial. Traditional bank loans may offer lower interest rates and longer repayment terms but often require extensive documentation and collateral. On the other hand, venture capital and angel investors can provide significant funding without immediate repayment obligations but may demand equity and influence over business decisions. Myers will guide attendees through the advantages and pitfalls of each financing route, helping them make informed decisions that align with their business strategy.

Product development and protection are also on the agenda. Myers emphasizes the importance of not only creating a high-quality product or service but also safeguarding it through intellectual property protections such as patents, trademarks, and copyrights. This ensures that the business maintains its competitive edge and prevents unauthorized use of its innovations. Additionally, Myers will discuss the significance of implementing robust operational protocols to protect sensitive business information and maintain regulatory compliance.

Another key topic is co-founder agreements. Launching a business with co-founders can bring diverse skills and perspectives, but it also necessitates clear documentation of each founder's obligations and responsibilities. Myers will outline best practices for drafting comprehensive co-founder agreements that cover equity distribution, decision-making processes, and conflict resolution mechanisms. Such agreements are vital for preventing disputes and ensuring a harmonious working relationship among founders.

Preparing for future financing or exit events is a forward-thinking strategy that Myers advocates for all business founders. He will provide actionable tips on maintaining meticulous financial records, building a strong customer base, and developing a scalable business model. These steps not only enhance the business's attractiveness to potential investors but also position it for a successful acquisition or initial public offering (IPO) when the time is right.

Myers’ extensive experience in counseling companies through various stages of growth, from raising capital to completing acquisitions and complying with regulatory requirements, makes his insights invaluable. He has helped numerous businesses navigate the complexities of growth and transition, ensuring they are well-prepared for any financial or strategic opportunities that arise.

It is important to note that Myers’ presentation is designed for educational purposes, providing general information on pertinent legal topics. The content shared does not constitute legal or financial advice. Entrepreneurs are encouraged to consult with legal and financial professionals tailored to their specific needs for personalized guidance.

Register now for NCET’s Biz Café on Aug. 21. It promises to be an enlightening event for anyone on the entrepreneurial path. Myers’ comprehensive approach to business formation, financing, product development, and co-founder agreements will equip attendees with the knowledge and tools needed to build a sustainable and successful business. Don’t miss this opportunity to gain expert insights and prepare your business for future success.

NCET is a member-supported nonprofit organization that produces educational and networking events to help people explore business and technology.

Sarah Johns is president and chief executive officer of NCET - Nevada’s Center for Entrepreneurship and Technology. Sarah has extensive experience in communications and networking with 20 years’ experience in television. She has also worked as Director of Public Relations for a tech startup, and most recently she was the Public Information Officer for the Washoe County Sheriff’s Office. Sarah was recognized in 2017 by the Reno Tahoe Young Professionals Network as one of Northern Nevada’s 20 Under 40. In 2018, Sarah received the 2018 Sierra Nevada Top-20 Powerful Women award from Northern Nevada Business Weekly. When not working to further the NCET mission, you can find Sarah spending time with her husband Dave Lawrence Johnson, their two young children, and two rescue dogs.