Besides a realistic forecast of initial capital needs and on-going cash flow, budding business owners face a myriad of details which possibly extend beyond their experience and knowledge. Entrepreneurs who thoroughly explore and plan all business aspects dramatically improve their chances for survival.
For example, choosing the formal business structure deserves up-front attention. Deciding to incorporate, form an LLC or another legal structure influences other matters including liability protection as well as income distribution and taxation.
In addition, understanding the financial side of business challenges many business owners. New companies that get off to a fast start often fall victim to the Rapid Growth Syndrome which drains cash flow and leads to possible failure. Knowing how to maintain the proper records plus the ability to read and use financial data helps the entrepreneur avoid problems with fact based decisions.
Having a firm grip on how the company will attract, sell and retain customers is a must. Satisfied customers and profitable sales drive business success. Unfortunately, not everyone rushes to buy a new product or service. Most marketplaces remain highly competitive. Even if better, a new mousetrap may fail to get noticed. It takes planning to affordably find and keep customers.
Hiring employees presents its own set of legalities and leadership challenges. Owners must understand and abide by the applicable labor and tax laws plus motivate and direct workers to produce profitable results. In most small companies, payroll and related costs represent a substantial portion of the overall expense structure. Employees and employment issues can either build or ruin a business venture.
Business owners operating without the benefit of study and planning may quickly find themselves overwhelmed by these potential pitfalls and more. Planning prepares the entrepreneur for the future and helps them side-step becoming a failure statistic.
Whether you are nurturing a new business concept or a running concern, ask us how we can assist you with developing your ideas and plans.