According to the Census Bureau, almost 4.5 million new businesses were started in 2020. The internet has made starting a business easier than ever. Starting a business is something that should be very carefully considered before filing articles of incorporation. It can be a large undertaking and many first-time entrepreneurs are not adequately prepared for the task. Do not invest in starting a new business without considering these things.
Say goodbye to a normal work schedule
Especially in the early stages of starting and running your business, you can expect to work more than fulltime hours and at all times of day. You must be self-motivated to be your own boss. It can help to create a detailed calendar to help you stay organized. Being the heart and soul of a company is tireless and thankless work!
Most new businesses do not turn a profit at first
You should be prepared to not make any money for 6 months. Many experts suggest that you have at least an equal amount of money to live on as you invest in your new business. For example, if you start a business with $20,000, you should have at least $20,000 to live on for the next 6 months. You will basically be paying yourself with your own money until your business gets its footing.
Additionally, when you are creating financial projections, remember that you will not be pocketing all of the profit. You will have overhead and you will have to re-invest upwards of 50% of the income in your company to foster growth.
You will most likely need help
While it is possible to do everything yourself, you will most likely need to hire people to get you going. You may not need employees, but you will benefit from independent contractors for things like web development, accounting, logo design, etc. Yes, all of the information is online, and you can learn to do everything, but it will slow you down tremendously and you will most likely not be as proficient as a professional.
It is ok to have a backup plan
There is nothing wrong with keeping your regular job or having a backup plan in case your business fails. There is a lot of risk when it comes to being your own boss. You will sleep better at night knowing that you have money coming in outside of your new business.
There is a lot of uncertainty when it comes to owning your own business. However, one way to make sure you are as safe as possible is to enlist the services of an attorney. An attorney can help you file for a federal employee identification number, register your business with all applicable states, file articles of incorporation, and ensure that your personal assets are protected.
If you are considering starting your own company, do not do it alone. The attorneys at Dsouza and Strachan Law Group are here to help. For well over a decade, they have been helping business owners navigate business legal issues. Contact Dsouza and Strachan Law Group today for a free consultation.