On Structure: Do Not Cross The Ocean By Canoe

Eridan Group
2 min readFeb 7, 2020

--

Have you ever seen someone trying to cross to the other side of an ocean with a canoe? You are most likely going to respond with a strong no, as the imagery appears absurd. However, chances are that you may be doing just that in your enterprise. The canoe or any other vessel typifies the corporate or legal structure the organization you lead runs on, whereas the other side of the ocean or destination represents your corporate ambitions and objectives. Being the driver of your venture, you need to ascertain how aligned your structure is to where you are going.

You pave the way for the market growth, operational effectiveness and future success of your firm by developing an appropriate corporate structure while your venture is still at its earliest stages — which is more cost-effective and easier than at a later time. Not developing the right structure early enough could actually stand in your way when opportunities for much-needed funding show up.

Determining the best fit legal structure among the available options, which could pose a challenge in many instances, is a function of possessing sound knowledge; it entails that you dig in to research what structure best fits your business model as well as consult experts for legal, tax and financial advice. As you bring more persons onboard your team, you need to see to it that you outline matters which could lead to future reputational risks or litigation. These may include employment terms, intellectual property (IP) ownership, equity structuring and so on.

Leaders that succeed are proactive, so are you — or should be. You need to be ready for the future success of your venture by ensuring that your organization’s legal or corporate structure enables you to perform effectively and attain your corporate aspirations. We are rooting for you.

--

--