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.
If you haven’t been to the home of your small business attorney recently, then you have probably noticed some big changes! As you can see, the website has been completely redone. You can now find the newest stories on the homepage. You can still find all the posts on the blog page. This year, each month will have a different theme with articles posted about top tips for you to have the best business year ever!
So make sure to check back to find out if there are new posts that will help you!
If you have comments about the new look, please let me know!
As an attorney that frequently speaks on social media, online law, and other techy legal issues, I get asked by employers what they can and can’t do as far as investigating applicants online. Unfortunately, the answer really varies on the specific circumstances. However, in most cases, employers should follow at least the following basic rules:
Don’t do anything online that you can’t do offline. For instance, do not use information you find online to discriminate against a potential new hire. If you cannot discriminate against someone due to having children offline, you can’t research whether they have children online.
You may be required to tell individuals where you get information about them during the interview process. If you are going to hire a company to research online sources to find out more about applicants, check with your attorney to determine if you must reveal this under the Fair Credit Reporting Act.
After hire, make sure you clearly state what you expect from employees both on and off the job regarding the use of social media. For instance, do you need to worry about complying with the FTC endorsement rules (i.e. if your employee says good things about you do the disclose the employment status)?
Depending on the number of employees you have and the type of business you have, you may need to have a policy on both using social media in the hiring process and after hire. If you are hiring employees, or have employees and haven’t thought about whether you need a policy before this, contact me, your Denver Small Business Lawyer today to find out if you need one today.
