By: Aaron Young
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. Naturally, this can be a risky proposition, especially during these turbulent times, but also a really exciting one! In order to succeed and ensure your business has staying power, just make sure to do your homework.
Here are some practical suggestions to help you flourish:
- 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. And, most importantly, ensure you have enough money saved to get you through the first few years of your business’ development.
- Minimize your risk. 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 a top priority in 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). Make sure you discuss this choice with someone qualified, like a business consultant or attorney. A CPA can also help you to assess which entity will be most advantageous for you regarding your yearly tax deductions as a business owner.
- Carve out a niche. Your business should fulfill a specific need in the market 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.
Remember, when you start a new venture you don’t have to go it alone. After all, companies like mine, Laughlin Associates, were founded on the entrepreneurial spirit! Many of the experienced corporate consultants that work in my industry either own or have owned successful businesses in the past; they know the challenges you will face and they have those much needed answers.
Research what companies are out there and determine which is the best fit for your needs. When you discuss your new business with a consultant, make a checklist beforehand with your top questions to gain some insight using their expertise. Employ the support out there and leverage it to your advantage! After all, many of the mega successful business men and women that I’ve encountered in my life have much of the same advice: track down a mentor, find out everything they know about business, and recreate your own success using what you’ve learned!
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Aaron Young, CEO, Laughlin Associates, Inc.[email protected]
1-800-648-0966 www.laughlinusa.com
