Small business ownership and success is a dream of many and with proper business formation as a foundation, the dream can be a step closer to reality.
Many people share the tempting wish to start a business and be their own boss. Making that dream a reality, however, can be a difficult task and for every business start-up that makes it, there is another that does not. Some of the many, but not insurmountable, challenges that a party trying to start a company might face may include transforming a business idea into a profitable business model, performing adequate research and knowing the amount of funding needed and how it will be arranged, among other possible challenges.
Experts say that the first year is the most critical for the success of the start-up company and that it is important to utilize market research to determine the size of any potential customer base, existing competition and the business environment into which the start-up company is entering. All of this obviously costs money and financial estimates for start-up companies can be unreliable at times. Sometimes it is the practical considerations, such as the loss of a reliable paycheck, that may hold back those whom would otherwise embark upon a new business.
Because of all of the potential concerns surrounding a start-up company, business formation considerations can be important. Having a solid foundation on which to begin the business, in terms of properly dealing with entity formation, joint venture concerns and regulatory concerns, to name a few, can be crucial to the long-term success of the business and the party’s goals for the business. For instance, if the company is a joint venture, it is important to plan for changes in the entity form if other changes take place within the business.
The dream of owning a business and embarking on the business start-up process does not have to be an overwhelming impossibility. A trained business attorney can help a party understand the goals for the business and prepare the proper foundation to attain the goal of a successful future for the company.
Source: The Economic Times, “Planning to start a new venture? Six start-up mistakes you must avoid,” Amit Kumar and Chandralekha Mukerji, Feb. 17, 2014