The Tech Entrepreneur’s Financial Playbook: Winning Plays for Forming, Financing & Operating Tech Companies

Copyright © 2017-2018 Evan Rogoff.

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The information, ideas, and suggestions in this book are not intended to render professional advice. Before following any suggestions contained in this book, you should consult your personal accountant or other financial advisor. Neither the author nor the publisher shall be liable or responsible for any loss or damage allegedly arising as a consequence of your use or application of any information or suggestions in this book.

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ISBN: 978-1-9822-1680-1 (sc)

ISBN: 978-1-9822-1681-8 (hc)

ISBN: 978-1-9822-1684-9 (e)

Library of Congress Control Number: 2018913849

Balboa Press rev. date: 11/29/2018

Contents

Foreword

Introduction

Formation: Tips on Choosing the Best Operating Entity

Accounting: Secrets your CPA Doesn’t Tell You

Corporate Finance: Ensuring that Cash is King

Human Resources: Best Practices to Hire & Fire Without Getting Sued

Legal: Avoid Risk Without Breaking the Bank

Governance: Build a Foundation for Corporate Professionalism

Taxes & Licenses: What’s Required and What Can Wait

Administration: Keeping It Simple & Effective

Going International: Tips for Overcoming Multi-National Complexity

Liquidity Event: Preparing to Cash Out

Appendix I: Sample Chart of Accounts

Appendix II: Sample Closing Checklist

Appendix III: Key Performance Metrics

Appendix IV: Sample Offer Letter

About the Author

Concise, well organized and easy to read!…this is what a starting entrepreneur needs.

-Venkata, PhD & Entrepreneur

Foreword

As a management professor, entrepreneur and former CEO of several technology companies, I’ve been a part of many startup and growing businesses. Like myself, so many of my students and fellow entrepreneurs are terrific at spotting market opportunities and developing products to serve new markets. We obsess over our products and customers and try to avoid complicated back-office functions like finance, human resources and governance.

The Tech Entrepreneur’s Financial Playbook is a fantastic guide and must-read for first-time entrepreneurs, to get their new business started the right foot. Evan’s advice is presented in an easy-to-read, step-by-step format to quickly and inexpensively make decisions about complex topics. His guidance simplifies decisions that lawyers and accountants can overcomplicate.

I recommend this book to all of my MBA students and all the first-time entrepreneurs who I advise. Evan’s advice saves time and money, keeps you out of trouble with the tax authorities and sets your business up for success with venture capital investors and acquirers.

Gregory Quinet

Associate Professor & Assistant Director of the Michael A. Level School of Management at Kennesaw State University

Introduction

When an entrepreneur starts a business, his or her focus is on developing a product or service to sell to customers, and