If you recently lost your job or have always dreamed about being your own boss, you may be contemplating a new business venture. Naturally, this is a risky proposition, especially during these turbulent times. Here are some practical suggestions and tips for starting a new business to help you succeed.
4 Tips for starting a new business
- 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
- Minimize the risks. 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’re currently out of work, make sure you have some cash reserves to fall back on.
- Carve out a niche. Your business should fulfill a specific need 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.
- 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, a limited liability company
(LLC), or a sole proprietorship.
Although you’ll personally shoulder most of the burden, you’re not alone. Call us for assistance with the issues related to starting a new business. This newsletter provides business, financial, and tax information to clients and friends of our firm. This general information should not be acted upon without first determining its application to your specific situation. For further details on any article, please contact us.