If there’s one thing the Great Recession taught us, it’s that we need to be able to make opportunities for ourselves, even in the face of widespread struggle–and many people do just that every day. According to the Kauffman Index of Entrepreneurial Activity, for the past few years approximately 300 of every 100,000 U.S. adults have started a business, with about 500,000 new businesses being started in each month. Though many definitely find the time to be right to be an entrepreneur, how many of these businesses will succeed in the long run?
The numbers are be daunting. A full half of all small businesses close up shop within the first five years of opening their doors while some others struggle to eke by, according to the U.S. Small Business Association. Business is filled with countless potential pitfalls and you can never prepare for every contingency.
Yet there are common behaviors among those that make it past the worst of it, hit their stride, and go on to succeed. Planning in advance and seeking professional advice is absolutely essential if you want to be prepared for whatever life has to throw at you, and are two of the behaviors common to those who endure. Key to your success is to intentionally take the time to plan out your business’s future otherwise your time will be gobbled up by the day-to-day business of running it.
As you plan out your business model, remember to turn to an experienced Creative Business Lawyer for crafting the legal framework for your company. No matter how successful your business is, lacking this piece of your business’ foundation risks everything you’ve built—and more!—being swept away in a lawsuit.
You need components like:
- Articles of Incorporation or Articles of Organization
- Bylaws or Operating Agreements
- Buy/Sell Agreements
- Business Succession Planning (it’s never too early to start!)
- Employee/Independent Contractor Agreements
- Intellectual Property Planning
- Insurance reviews
- Tax strategy
Think first and foremost of the structure of your business–sole proprietorship, partnership, corporation, or LLC—and seek out solid legal advice. The different ownership structures each entail differing tax implications and varying protection for your personal assets from business liabilities.
We recommend a LIFT™ Startup Session. Normally, this session is $1,500, but mention this article and if we still have room on our calendar this month, we will discount your session by $500. Contact us today at 612-206-3701 or via our online contact form.
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