3. Assemble an advisory board.
“A founder’s instinct is usually correct because they’re passionate,” says Scott, who bootstrapped her eponymous billion-dollar jewelry empire on credit cards and now boasts Warren Buffett’s Berkshire Hathaway as a major investor.
However, Scott advises founders to set up an advisory board of experienced business leaders early on. “Report to them quarterly like a public company and have biannual planning meetings with them,” she says. “We all have biases, so select balanced, deep thinkers who’ve known you a long time and can easily identify your blind spots. Like your best mentors, they’ll give you the perspective you don’t want to hear.”
think far ahead,” says Jaime Schmidt, founder of Schmidt’s Naturals, a deodorant, soap, and toothpaste brand acquired by Unilever for an undisclosed amount in 2017. She advises business owners to keep audited financial records from the start. “The more history you have, the more sellable the company will be.”
Steve Neeleman, the founder of health savings service HealthEquity, warns of cybersecurity threats to companies as they grow and become visible in the press. “If you want to be bought – especially by a public company – make sure every door is locked. Every hacker will try to smash into your system.”