The Startup Checklist by David S. Rose, published by Wiley in 2016, is a practical guide to the setup work that sits underneath a new company. Rose is an angel investor, the founder of New York Angels and the founder and CEO of Gust, a platform that connects founders and investors. The book draws on that investor experience of watching startups trip over avoidable setup mistakes.
What is The Startup Checklist about?
Most startup books focus on strategy: finding the idea, testing it, growing it. Rose focuses on execution, the concrete actions that turn an idea into a company investors can back. His argument is simple. Plenty of founders get the product right and still lose a funding round, or half their equity, because of a sloppy incorporation, a handshake deal with a co-founder or missing paperwork.
The book has two parts after an introduction listing 25 action steps, plus one bonus. The first part prepares the launch: choosing a business model, writing a lean plan, studying competitors, building the founding team, splitting equity and planning a first product. The second part covers launching and building the company: incorporating, choosing legal counsel, setting up a board and advisors, accounting, banking, credit and technology suppliers. Each chapter ends with the action to take.
The difference from other startup guides is its focus on the unglamorous plumbing. Rose writes from the investor’s side of the table, so he knows exactly which setup errors make investors walk away.
What are the main lessons for founders?
- Choose the right legal structure early. Rose explains why many US startups aiming for investment form as a Delaware C corporation. Founders elsewhere should ask what local investors expect before they register.
- Put vesting on founder shares. If a co-founder leaves after six months, vesting means they keep only what they earned. Without it, the remaining founders work for a passenger.
- Use a specialist lawyer. A lawyer who handles startup work daily knows the standard documents and the traps. Saving on legal fees at incorporation can cost a lot at the first round.
- Keep the books clean. Simple accounting from day one makes taxes, due diligence and fundraising faster. Messy records slow every deal.
- Build a board on purpose. Decide who sits on the board and which advisors you need, and put agreements in writing before anyone starts giving advice.
Who should read The Startup Checklist?
It suits founders who have a tested idea and are about to incorporate, bring on co-founders or talk to angel investors. Technical founders who have never set up a company will find it especially useful, and so will mentors and accelerator staff who answer the same setup questions every week.
You can skip it if you run a freelance practice or a small lifestyle business with no plans for outside money. Much of the legal advice assumes a US venture-funded path.
How do you put The Startup Checklist to work this week?
- Write down who owns what today, including any promises made to co-founders, advisors or early helpers.
- Book a call with a startup lawyer in your country and ask about the structure local investors expect and about vesting.
- Open a separate business bank account and set up a simple bookkeeping tool, even before your first sale.
The free Startup checklist tool on Fe/male Switch turns these setup tasks into a list you can tick off.
Where does The Startup Checklist fall short?
The book is US-centred. Delaware corporations, US securities rules and American banking advice do not travel well, and founders in Europe, Asia or Africa must check every legal step locally. Legal and tax details also change, so parts of the 2016 text have dated, and Wiley has since issued a second edition. Customer discovery gets only a brief treatment. For testing the idea itself, read The Mom Test, and for the terms of a funding round, Venture Deals.