Top 5 Considerations for Entrepreneurs (whether you’re just starting out or been around for a while)
TOP 5 CONSIDERATIONS FOR ENTREPRENEURS
- Business Entity Choices The choice of business entity is critical for a new business. Each entity type has certain advantages and disadvantages related to taxes, liability and operation. In addition, some entities are only available to businesses with a certain number of owners or partners.
(a) Sole Proprietor/General Partnership
(b) Corporation (Sub-chapter S or C)
(c) Limited Liability Company
(d) Limited Partnership
(e) Limited Liability Partnerships
- Capitalization One of the most common reasons a new business fails is undercapitalization. This occurs when there simply is not enough money in the business to keep it afloat during critical stages of a business life (1) planning, (2) start-up, and (3) growth.
There are several options to consider.
(c) Third-party financing
- Exit Strategy Believe it or not, it is critical for a new business owner to have a clear exit strategy for herself. Think of it as a roadmap or GPS device. You know where you are now. You should have a good idea of where you would like to end up. It provides you with a goal to strive to achieve.
Understand what you want to do with your business after you do not want to go into the office anymore such as
(a) Pass the business on to family
(b) Sell the business to another entity
(c) Close the business after reaching a certain revenue goal
- Accounting The quickest way to lose track of your business is to ignore basic business accounting. You do not have to be an expert in reading financial documents, but you should be able to understand the essentials contained in Financial Statements such as Profit-Loss Reports and Balance Sheets.
Depending on the level of your competence in these areas, you have several options. For instance,
(a) Certified Public Accountant
(b) Bookkeeping service
(c) Computer software solutions
- Legal Services From formation to wind down and termination, a business has legal issues that deserve the attention of an experienced attorney. The time spent with a good attorney can save both time and money later. Always get advice before entering into any contract or agreement.
After reading these considerations for the entrepreneur, if you still want to start your business; we would appreciate the opportunity to work with you and build a strong, lasting relationship with you.
[Photo Credit: Wade M.]
Contact us below if you’d like to work with us in making your business dream a reality.