From Concept to Corporation

Abstract

Corporate governance has a very different harmony in a start-up technology company than it does in most mature-stage corporations. Rather than a CEO with operating, financial, and marketing skills, an early-stage venture needs a “chief concept officer” who can articulate a vision, gather others to assist in implementation, and take an idea from concept to business plan. The board of directors, usually composed of stockholders who are the main source of funds, should act as a group of involved mentors, provide a source of contacts, and closely monitor management. The audit committee is concerned largely with information gathering and verification. Seasoned advisors also are needed to help the company identify and benchmark its progress and failures and continuously adjust and focus its business model.