Tips for Starting a New Business
- June 1, 2011
- Categories: Money Management
If you recently lost your job, or have always dreamed about being your own boss, you may be getting ready to take matters into your own hands by starting your own business venture. Naturally, this is a risky proposition, especially during these turbulent times.
Here are some practical suggestions to help you succeed:
• Be realistic. Don’t expect your business to be immediately successful. In fact, you should be prepared, both mentally and financially, for the worst-case scenario. Recent statistics from the Small Business Administration (SBA) show that about one-third of new business start-ups fail to make it through two years; and over one-half fold after four years. Give your business time to grow and prosper.
• Minimize the risks. Even if you’re encouraged by the initial results, don’t tie your fortunes completely to this undertaking. If you’re still gainfully employed somewhere else, keep the job and operate the new venture as a sideline business. If you’ve taken a package from your current employer but want to launch a new career with a new business, make sure you establish some barriers for asset protection first. You have a lot to lose and making sure you protect your personal assets should be part of your business plan.
• Choose the proper form of ownership. Depending on your circumstances, it may be best to operate the business as a C corporation, a partnership, an S corporation or a limited liability company (LLC).
• Carve out a niche. Your business should fulfill a specific need that is difficult for chain stores or other broad-based businesses to meet. In other words, if you try to compete directly with the corporate giants, you’re likely to lose.
For more info, call Laughlin Associates at (888) 386-3811 or visit online at www.laughlinusa.com.