Starting a business? It sounds exciting doesn’t it? Well it is but
there are some things you need to consider before you open your doors or
build an ecommerce website. With proper planning you can be successful,
but if you just jump in without doing your homework you may become one
of the several small businesses which fail each year. Don’t see your
dream fail; start with these points to give your business a solid
starting point in the road to success.
What Type of Business Structure Should You Consider?
There are several different types of business entities to choose from.
Sole proprietorship is the most common one people think of when they are
starting a business, but this may not always be the best choice. While
you are the one and only boss, you also bear the burden of all of your
business’ expenses and debt. If the worst happens and your business
fails, creditors may be able to come after your personal assets to
satisfy your debts.
An LLC or S-Corp may be a better choice for
you. These business entities give you protection from seizure of your
assets and bearing the entire burden of your business’ debt. The debt is
distributed among the owners based on the percentage of investment they
have made. If you have to file bankruptcy for the business your
personal assets are then protected from creditors.
What Need Will You Fulfill?
Chances are if you’re going to start a business you have a passion
driving you. If you are creative this passion may be to create
furniture, jewelry, or some other product. If you’re into marketing you
may want to start a consulting firm and help people make their
businesses a success. No matter what your inspiration may be you have to
be able to provide the answer to a need. This may be a local need in
your own community, or a need you perceive on the internet. Having
specific goals about what your business can provide is essential to its
success.
What Makes You Different?
There may be a dozen bakeries in town, but why do you always go back to
your favorite? What makes them stand out from the rest? Is it quality
products, excellent customer service, or value for your dollar? It is
probably a combination of all of these things which drive customers to
their doors. You have to have something that makes your business stand
out from the competition. Ask yourself, why would you go to your
business instead of one down the street? When you can pinpoint the
answer to this question you can attract customers whether your business
is brick and mortar or online.
Get Legal Counsel
Starting a business is hard work. Before you open your doors or make
your website live get the advice of a lawyer or firm which specializes
in small businesses start up. You need to have your personal assets
protected, and if you’re going into business with partners you need to
have a formal contract written up for the protection of all parties.
Whether you’re opting for a single proprietorship or an LLC, it is a
wise investment to get the legal help you need to start your business
off on the right foot.
Tags: LLC