The Corporate Law Group

Lining Up the Ducks

Lining up the DucksEvery company needs two different kinds of leaders. Indispensable is someone with a vision who sees something that most others don’t and who keeps that vision pure and alive through all of the hurdles you have to jump in building a great company. Without that person no company was ever created. But without a second kind of leader that vision may never hit fruition.

Every company also needs a COO, in function if not title. Every company needs a person who oils the machinery, inspects the knitting, counts the inventory, and banks the money. Growing companies do deals. They engage in co-branding, they sell stock, they license tech, and hire and fire. They sign term sheets, retain advisors, grant options, and protect IP. People have to be paid, bills collected, and banking tracked. All of this takes agreements, signatures, files, and records. And someone has to do that stuff.

Many companies catch up on this stuff at the time of a financing, acquisition, etc. when they are going to be subjected to due diligence. That’s OK. We get it. The thinking is, “Why spend the money,” to cross every “t” and dot every “i” unless you have to. But, as with many things, a little regular maintenance might prevent having to replace a carburetor. Just saying.

In any event the visionary may be irreplaceable but the administrator is pretty important too. No business ever succeeded without a good one. A person to keep your ducks in a row.