Exit stage: Is it time to expand or exit?Įxpansion: If you are considering expansion, key questions to ask yourself and your team: If you decide to expand, are you scalable? Are your people prepared for the complexity that growth will bring? Will your infrastructure support your goals? “That’s why entrepreneurs are giving four times more to charity than other donors-their values and passion are driving everything they do, from their business to their philanthropy.”Ĭharitable giving helps you create your philanthropic footprint and can position you as a socially conscious leader and add value to organizations you care about. They’re ready to roll up their sleeves and build deep relationships through giving and volunteering,” says Margot Navins, Vice President of Corporate and Executive Giving at Fidelity Charitable. “Entrepreneurs and founders have a really unique approach to giving back that is often reflective of how they built their business. ![]() When the focus is on growing your business, does philanthropy fit into the picture? Research from Fidelity Charitable® says yes. Image Credits: Fidelity Investments (opens in a new window) Entrepreneurs as Philanthropists: A Founder’s Mindset Earlier, your capital may have been tied up in the company. At this stage, many entrepreneurs review their philanthropic ambitions. How you give back says a lot about your organization. Compliance, good liquidity advice and managing taxation are just some critical areas to consider. As you move through your funding rounds, you will need to adjust your compensation strategy. It’s critical to build “purposely” and ensure your operations are in good working order. Your structures require ongoing care and maintenance.You and your team will need an approach that is agile and responsive while adhering to your long-term vision. That next round of testing or new client might push you forward. Having a strong governance plan will help you be better accountable to your investors, workforce, suppliers and customers. A n equity event might be right around the corner. To grow wisely, you must stay up to speed with your industry, the broader economy and technology. Growth stage : Opportunities can develop quickly. It will be critical to be both investor- and diligence-ready at all times. Does your financing support your infrastructure and plans for growth? Early in your existence, don’t neglect your governance plan while you seek investors and pursue markets. ![]() Having your financial controls in place, defining your structure and how to maintain it are all critically important. There’s no “set it and forget it” for your journey. Many owners could benefit from planning with a tax professional much earlier in their lifecycle to weigh the tax implications for various scenarios you might encounter. Consider that tax can be imposed on today’s value versus what it may appreciate to later on. Your colleagues will witness the evolution of your vision and the historic reasons for choices that have been made.įrom a tax planning standpoint, planning early in your lifecycle is the most efficient from a federal, state, estate tax and gifting perspective. Having a team that’s been there from day one provides your business with important context for decision-making. Success can come faster than you think.īack your vision with the solid foundation of a great team. ![]() But it will never be as efficient as it would be from the beginning. If you fail to plan early, that doesn’t mean you can’t plan later and adjust. It’s critical to have a solid business plan as early in your business’s lifecycle as possible. As you seek to raise capital and plot your way through the markets, having a plan that accounts for your entire journey will be something you rely on time and time again.Īt this point, careful analysis and creation of your business model will determine if you can successfully monetize your product or service. You’ve started with a concept you are passionate about and have assembled a group of like-minded professionals and/or family members. Early stage: For a company founder, there is no such thing as “too early to plan.” Here are some things to think about at the early, growth and exit stages. A plan for funding, how to scale, build value for investors, mitigate taxes, how to give back, and, how to move on. Wherever you are on your path, it’s always time to plan. By Carl Stegman, Senior Vice President, Private Company Practice Lead, Fidelity InvestmentsĪs you build your company, you will make many decisions over the course of your journey to growth.
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