The KFB-Law Guide to Embarking on Your New Business Adventure
Starting a business can be an exciting, exhilarating new venture. It enables you to act as an entrepreneur and chase your dreams in a way that you never before imagined. It lets you find your own path in life. When you start your own business, you’re not merely taking the road less traveled, you’re paving your own road all from scratch. This is no small feat, so you need to be sure that you have all of the right tools and resources before you set out on your journey.
Step One: Write a Business Plan
You wouldn’t go on a road trip without a proper map, so you shouldn’t start a business without a well thought out business plan. To make a proper business plan, you should first map out your company goals and how you plan to achieve these goals. This outline will serve as the core goals of your company, as well as your company’s resume. It can help your company receive funding, and can keep everyone in your company on the same page, every step of the journey.
A good business plan should also include a balance sheet, income statement, and a cash flow analysis. It is essential to keep track of profits and spending in your small business. Just as a full tank of gas is essential for a road trip, proper funding is needed to help you grow your new business. A detailed business plan can help you allocate your resources properly and make sound financial decisions. Including these details in your business plan is essential if you are applying for loans or presenting to potential investors.
Step 2: Choose a Legal Structure
After you map out your business plan, you need to determine what structure you want for your business. Will your business be a sole proprietorship, or a partnership. Will it best serve as a limited liability company (LLC), or as a corporation? Choosing your business structure is as important as picking out a vehicle for your road trip. You need to consider your needs and your vision of the future, then find a structure that best suits these ideals.
For example, sole proprietorships and partnerships are generally pretty simple structures. They typically don’t have start up fees and have limited paperwork. However, you are personally liable for the debts of your business and will pay taxes on your business profit as income on your personal taxes. Meanwhile, LLCs and corporations are more complicated and expensive to start, but they can limit your personal liability and their taxes are handled differently.
When it comes to choosing a structure, the ideal legal structure is truly dependent on the type of business that you wish to run and the amount of exposure to risk that you are willing to take on. If you’re uncertain about which structure is right for you, you may want to contact a small business attorney. Business attorneys can help you prepare other aspects of your business as well, so it is always a good idea to contact them early on in your business venture. Think of them as your travel guide in foreign lands. They can show you which path to take, help keep you safe from dangers, and translate foreign ideas or concepts for you to help you understand exactly what is going on and make the best choices for your business.
Step 3: Getting Started
Once you have your business plan mapped out and your ideal business structure selected, you’re finally ready to embark on your new adventure! Or are you?
There are a few more things to consider before getting started. For instance, you can’t drive a car without a license. Likewise, you can’t run your business without one either. The type of licenses and permits that you’ll need will vary depending on the type of business that you are running. Regulations will vary by industry and state, so be sure to do your research, or hire an attorney to help you. If you don’t have the proper license and permits, then you’re unprotected legally. This could lead to expensive penalties and could jeopardize the success of your business.
Lastly, your small business may require additional employees. You can’t push yourself to be behind the wheel driving your business 24/7. You need some help on this great big business road trip; someone else to help you out and manage specific tasks. You need employees. Workforce management can be a very difficult task for small business owners. For starters, there is a whole web of legal regulations when it comes to employment law, as employees are a common source of litigation issues. You also have to be prepared to consider wage issues, workplace safety issues, discrimination policies, and how to handle the termination of employees. However, once you find employees that suit your business and have all of the necessary paperwork and licenses complete, you’ll finally be ready to start your adventure.
Good luck, and happy travels.
For more information, feel free to contact us here at KFB-Law. We have a handful of highly experienced business attorneys that are ready to help you out with your new business adventure. You don’t have to embark on this journey alone. Our attorneys at KFB-Law will be there for you around the clock whenever you need us most.