Investment Worthy Startups Book Review: ORGANIZATION

Investment Worthy Startups Book Review: ORGANIZATION

The “Organization” component in the POEM Framework, as outlined by Tomi Davies, is an essential guide for startup founders looking to establish a strong foundation for their ventures. The Section addresses key factors that contribute to a startup’s success and attractiveness to investors. This review highlights some of its key points in simple terms for startup founders.


Legal Structure:


TD emphasizes the importance of choosing the right legal structure for your startup. While there are various options, the most effective one in many cases is a limited liability company (LLC). This structure offers legal protection and flexibility. Ensure you document ownership and governance arrangements accurately.


Ownership and Governance:


Define ownership clearly. Understand the rights and privileges of each owner. Establish a co-founder’s agreement that covers ownership percentages, contributions, and decision-making rights. Consider important questions like who can sell the company or appoint board members.


Operational Processes:


Document how your startup will operate daily. This includes procurement, internal functions like design and development, and external activities such as marketing and sales. Clear documentation helps potential investors grasp your operational vision.


Corporate Policies:


Formulate policies for asset acquisition, employee compensation, and customer retention. Your stance on these strategic issues can impact your startup’s progress. Thoroughly research, discuss, and document your company’s position.




Recognize that your plans will evolve. Documenting your organizational structure and processes serves as a guide but should remain flexible to accommodate changes in your startup’s journey.


Building a Strong Team:


The organization starts with the owners. Define ownership, rights, and responsibilities clearly. Understand the significance of a co-founder’s statement that outlines ownership and value contributions.


Day-to-Day Operations:


Management is responsible for running the company. Define roles and responsibilities within your management team. Ensure they possess the skills required to make your business profitable and efficient.


Finding the Right Talent:


Startups thrive with the right people. Identify the skills you need and consider hiring or involving experts early on. Specialized marketplaces, cold outreach, and recommendations/referrals are effective ways to find exceptional team members.


Partnering Strategically:


Recognize your startup’s limitations and collaborate with partners who complement your offerings. Determine your external needs, such as logistics or marketing, and seek suitable partners. Professional advice in legal and financial matters is crucial from the beginning.


Cultivating a Positive Culture:


Attracting and retaining top talent requires a strong organizational culture. Clearly articulate your company values and offer growth opportunities. Create a positive work environment and reward excellence to motivate your team.


The “Organization” segment within the POEM Framework emphasizes the need to establish a solid organizational structure, document processes, and build a capable team. By following these guidelines, founders can increase their startup’s appeal to investors and set it on a path to long-term success. Stay tuned as we unveil the next layers of wisdom with the ‘E’ in the POEM Framework. Don’t miss out – seize your copy today and chart your course toward startup success!

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