The thought of being an entrepreneur is exciting for many people. However, those who decide to pursue their business ventures may find themselves overwhelmed during the formation stages. There is a lot of information to process and things to do besides coming up with a catchy brand name and slogan. To make it easier for new small business owners to succeed, here’s a handy little checklist to consider.
1. Structure Is Everything
There are four business structures that entrepreneurs can choose from. They are sole proprietorship, corporation, partnership and LLC. There are also substructures to keep in mind, such as C and S corp., joint ventures and limited partnership. It is important to consider each one carefully because they have different tax and legal liabilities.
2. Take Care of Employees
Employees are vital to many companies. To attract and promote a small healthy company culture, hence it is imperative to provide employees with the right kind of incentives and benefits. Put yourself in the shoes of potential workers, and think about the kind of benefits they would like. Consult with several companies, like captive insurance companies, to get a firm idea of options. Choose benefits that ultimately help to mitigate potential issues that could arise down the line that could negatively impact your employee morale and retention, such as health insurance, benefits packages, etc.
3. Small Plan for the Unexpected
Much of operating a successful business is planning for the unexpected. Problems can arise at any time and create challenges that impact the flow hence operations and the company’s reputation. Consider consulting with a business attorney or legal expert to learn how to mitigate as much risk as possible to protect the business.
Starting and running a business is not as simple as it may seem. However, taking the proper steps and using this little checklist during the formation stages can help make the experience less challenging and more rewarding.