Attorney: Your attorney will help you stay out of legal trouble from helping you choose the right business entity to writing the sales document when you sell your company for millions!
Banker: Your banker will help make sure you have the right accounts set up, walk you through loan processes, and offer general business advice if they are good.
CPA: You accountant will know more about you than your spouse; he or she should know where you spend your money, how to spend it so you save on taxes, and file the right documents so your city, state and the IRS don’t come after you for unpaid taxes.
Insurance Agent: Your insurance agent will make sure you have the right coverage without having too much coverage and being insurance poor; set up yearly reviews so that if your business changes, your coverage changes with it.
Mentor/Business Advisor: You mentor should be someone that is in a similar field or at least has owned his or her own business; he or she will give you advice when you hit bumps, a shoulder to cry on when you have lows, and celebrate the successes of your business throughout your company’s life!
This week, we look at the basics of sole proprietorships and partnerships. Please enjoy this YouTube video and if you have any suggestions for future videos, please comment on this post!
Before going into business with someone else, you really need to think about it. Partnerships can work, but like marriages many of them fail. Here are five things to think about before starting a business with someone else.
Can you work together? This is the biggest question you need to answer. If you can’t work together then you shouldn’t go into business together. It may seem like common sense, but many times people over look this because they want to go into business with a friend, a spouse, or a family member. Do some soul searching to make sure that you can work 60 to 80 hours a week with this person.
Do your work styles complement each other? If one of you is really messy and one of you is really neat, it may seem okay to begin with. However, one year, or even one month, of sharing an office can lead to fighting over cleanliness. If one of you wants to aggressively market the business and the other wants to go slow and steady, it may cause friction. Make sure your work styles complement each other.
Are you all going to work in the business or are some of you only investing? If you expect you and your partner to both work and contribute the funds to start the business and your partner expects you will do all work because he is only funding it, there is going to be an issue. Make sure have discussed who is contributing what to the business, whether time, money, or experience.
Are you all ready and willing to put in the same type of hours if you are going to all work in the business? If you think you and your partner should both be working 80 hours a week until you are successful, but your partner only wants to contribute 40 hours a week then there is going to be friction. Talk with your possible partner or partners to make sure you all have the same goal.
What are you going to do if the partnership goes south? Prior to starting a business with partners, you need to discuss what you are going to do if something goes south with the business. Is one of you going to be able to buy the other out? Will you dissolve the business? Can one of you outvote the others?
Welcome to the second in the video blog series from the Law Office of E.C. Lewis, P.C. This week we will be discussing the basics of starting a business in Colorado. Included are the six biggest issues that you should think about prior to starting a company! If you have any suggestions for future blogs, please leave a comment!
With the new year, comes urgings to do new things! So, this month we are talking about things to think about when starting a business. Here are five things to think about if you are thinking of starting a business:
Do you have the dedication to work long hours? Starting a business takes time. Even if you are lucky enough to eventually make money only working a few hours a week, that will probably only happen years, if not decades, after starting your business. You need to be willing, and ready, to work 60 to 90 hour weeks for the first few years.
Have you found a business you are excited about? As said above, you are going to be working a ton of hours. Your business will require weekends, nights, and holidays. Make sure your business is something that you love because it will become your life.
Can you fund your business? Many people have an idea but they don’t have the funds to start a business. Starting a business takes time, effort, and most importantly money. Most businesses are not profitable the first year so you will need money to both fund the business and fund your own personal needs. Even if you are going to seek loans and investors, they will want you to have skin in the game.
Do you have good credit? Good credit is a must when you start a business. At some point you are going to want to get a business credit card, a line of credit, or a loan. Even if you don’t see needing these, you many want to take credit cards, rent equipment or a building, or lease a car. Your credit rating will affect what you can do and how much it will cost you to do it in the financial and business worlds.
Are you going to go into business by yourself or with others? If you are going into business with others, or thinking about, make sure to check back next week for the blog post things to think about when going into business with others. It is one of the most important decisions you can make – maybe even more so than who you marry!
Happy New Year from the Law Office of E.C. Lewis P.C.. Welcome to our first video post! We hope you enjoy it! If there are topics you would like to see addressed in the future, please make sure to leave a comment. As always, if you need specific help, please feel free to call me, your Denver business attorney, at 720-258-6647.
