Are you launching a business? If so, congratulations! Running a business is a challenging but incredibly rewarding experience and we wish you all the best.
In this blog entry, we are going to highlight four important questions that every prospective business owner should consider before taking the plunge and creating a business.
1. Are you ready for the risks and challenges that accompany life as an entrepreneur?
There is inherent risk in owning your own business. To be honest, most people prefer the security of working for someone else. Can you handle the pressure and the responsibility? If you’re going to be lying awake at night, stressed about paying the bills, you may be better off postponing your entrepreneurial dreams until a time in your life when you can afford the risks.
Do you have the motivation and the self-discipline to build a business from the ground up? If there are key skills or abilities that you know that you are lacking, you’ll want to either plan to immediately hire a key employee with those key skills, or consider looking for a partner that complements your skill set.
2. Do you understand your market?
Is there really demand for the products or services you plan to provide? Do you understand your target customers, their needs, and their outlook? Attend conferences and talk to contacts in your market. Keep up to date with periodicals. It’s especially important to know that your market isn’t just thriving today, but is expected to remain viable for years to come. The economy is evolving rapidly, and entire industries are disappearing every year. You want to put your time and money into a growth industry, not something that’s on its way out.
3. Have you thought your business out, from A to Z, and determined that it’s viable?
Businesses open up every single day in this country – but many of them disappear just as quickly. In fact, according to the Bureau of Labor Statistics, nearly a quarter of new businesses won’t survive their first year! It’s important to create a thorough business plan which ensures that you aren’t overlooking key details. It’s just as important to seek input from others who understand your industry. Seek out colleagues, fellow business owners, business coaches, and anyone else you think could provide valuable perspective. Ask for their input and truly listen to what they have to say. When you’re excited about an idea it’s easy to overlook potential flaws, so work hard to keep an open mind.
4. Are you building your business on a solid legal foundation?
Partnering with a business lawyer from the beginning is an investment that will pay off many times over. Structuring your business properly will save you endless headaches later, not to mention saving you money and stress. Having all of your contracts written by a business lawyer will protect your business from lawsuits and scammers. And, if your business does run into legal issues (which is a virtual certainty if you’re in business long enough), you’ll have someone who already understands your business fighting in your corner.
If you’re thinking about starting a business, or if you’re already up and running, we would love to talk with you. Our specialty is partnering with entrepreneurs and business owners to ensure that their business operates on a solid legal foundation – and representing them in court should the need arise. Please contact us today to learn more!