The 13th Greater Hub held an internal discussion session with Muhammad Philosophi about “Legal for Business Growth.” Muhammad Philosophi or called Philo is an alumnus of Padjadjaran University, also the Chief Executive Officer (CEO) and founder of legal tech LegalKu Digital. The internal discussion session, held on Friday, 18 November 2022, was attended by 11 startups with various service or product backgrounds.
The startups participating in internal discussion sessions via the Zoom application were Ashwa, Pararenting, DonASI, Rantangin, Kreasa, Harmoniz, Greenlabs, Xerofit, Tutorin, KMD Cargo, and Akhira.
In this internal discussion session, Philo explained that a system must be formed in a business during the first year to create standards. The system in question is the roles and functions of people, KPIs, and structures.
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The People category is divided into three criteria. First, the Chief Executive Officer (CEO) with the characteristics of the “gas” function is an optimistic person to find clients. The second function is “coupling,” also called the category for individuals proficient in operations, technical, and deliverable products, also called the Chief Operation Officer (COO). The “brake” function is the third function of maintaining finances, setting targets, and maintaining financial flows to keep the company running, which is often called the Chief Funding Officer (CFO).
The second is the Key Performance Indicator (KPI) or target indicator. KPI functions as a division of responsibilities per member and organizational structure. Philo explained that the quantitative method is an effective way of measuring KPI so that it is measurable. Indicators that can be used are working hours, work effectiveness, and deliverable products. Quantitative measurements also help reduce conflicts that might occur in an organization.
The third is structure, starting from planning for the next five years but there is no specific format to start with. Products provided by a business should focus on applications that are the most simple and easily accepted by users.
“It doesn’t have to be high tech; the important thing is that our products help clients,” said Philo.
To avoid product or service piracy, patents or contracts must also be accompanied in the monetization process. If the product is consumed, it must be accompanied by terms and conditions between the seller and the buyer and a receipt to minimize risk.
Understanding the market is essential in running a business. Startups must understand the characters of the industry to distinguish between buyers and users.
“The market is related to validation by understanding that our buyers are not necessarily our users,” explained Philo.
Furthermore, according to Philo, business people need to pay attention to the scale-up method so that their business grows. The scale-up method can be done by increasing sales turnover, optimizing profit margins, and conducting mergers or partnerships with commercial institutions, BUMN, and educational institutions.
Next is a capital injection (additional business capital) through business capital loans, grants, and share investment.
Finally, Philo explained that the basic legal aspects that must be prepared for a business are the agreement of the founders (internal and external standard agreement), business entity, licensing (Company Identification Number), and Intellectual Property Rights (IPR).
“All agreement must be in writing to ensure its robustness” Philo added regarding the agreement.
The agreement serves as a written embodiment of individual roles and responsibilities within the organization. The agreements include founder agreements for co-founders, shareholder agreements if they are PT, employment agreements, and internships or partnership agreements if the worker’s salary is below the minimum wage.