Unfortunately, they often self destruct and most have trouble making the transition from start-up to serious enterprise. Investors and employees are alienated, companies falter and nobody ends up happy.
Some people think that it’s just the nature of the beast, that at some point a company founder should step down and let “adult supervision” take over. I disagree. Entrepreneurs represent the heart and soul of the companies that they create and when they leave, something important is forever lost. There are, however, some things they need to know.
Start-ups are long on hopes and dreams and short on process, but as the company grows financial planning becomes unavoidable.