The Rise & Fall of CashMadam
This is a ThrowBackThursday story on how not to start a startup in Nigeria. Ideas can be all beautiful, sound fantastic and even actually have great potential. Do you know what the problem is? Potential. If all you have is potential, you are like:
Even with seed funding and promise of another major funding round, CashMadam failed. It would've been "Big?" today if:
Verbal consensus were put on paper: It's not enough to trust or assume that everyone on the team understands; make sure to write them all down on paper and all that it's binding.
Verbal consensus were put on paper: It's not enough to trust or assume that everyone on the team understands...
Verbal consensus were put on paper: It's not enough to trust or assume...
Proper paper works must be laid down in the beginning. You don't necessarily need a lawyer (if you can't afford one), write the consensus down in plain language first (even if it's in an email or email attachment).
My dear entrepreneurs, pay attention to your first and early steps. Don't say "s/he is my friend" or "we've never quarreled since we became friend X years ago". If you are not able to set ground rules from the early days (starting from day 1) and formally agreeing to these rules (in the form of Founders or pre-incorporation agreement), please don't start a co-founder this or co-founder that; unless you are starting alone. People (even your friends, even me) may change so fast, and you will be pretty badly burned in the process.
Be bold! Demand for a pre-incorporation agreement; then build an amazing team and product. Remember if it's not working out well, change method, change the idea, change fast until something is looking good. If the other party is not changing "at-all-at-all", leave/quit while your honour and respect are in tact.
If you were inspired by this, kindly touch my mah-kate here .