Maybe you’ve been dreaming up bizarrely fantastic fusion recipes since you were in college, or you and your best friend have come up with an unbelievably simple widget that’s going to revolutionize an industry, or maybe you just want to sell ugly Christmas sweaters that you knit and your dog paints for a living.
If you’re dreaming of starting your own business this year, you’re not alone – 43% of Americans are dreaming with you. But beyond dreaming about that big idea and perfecting your product or service, where do you even start? Well, I’m glad you asked!
Three Things to Consider When Starting a New Business
There are three things that are really important to decide before you write that resignation letter or call Richard Gere to come carry you away from your boring factory job while all your former coworkers slow-clap and wish they were you.
- What kind of business structure is right for you? An LLC, a Corporation, a Joint Venture? This decision will have all kinds of consequences for the future success of your business. Not only is it difficult to change after you’re up and running, but each particular structure has specific requirements and restrictions.
- How are you going to structure your business? Will you have a Board of Directors, and if so, how wise is it to ask your Sorority sisters? Are you taking the S-election? Are you going into partnership with someone you’re sure will remain your best friend through all the ups and downs of the next 20 years?
- Where’s your money going to come from? Outside investors, your own funds, maybe a bank loan? If you’re looking for investors, they’re going to want you to make like Jerry Maguire and show them the money. If you’re using your home equity, do you understand the legal ramifications?
Answer These Questions Before Moving Forward With Your Business Idea
These are all important decisions you need to consider as you move from the dream world into the reality of owning your own business and making it successful. If you have questions, give us a call! We would love to help you think things through!