This post was written by Quinton Johnson, Attorney at Stanton Law.
What kind of business do you want to have in five years? There are certain building blocks that are critical as you create the foundation for your entrepreneurial endeavors. In the first of this three-part series, Quinton Johnson outlines the critical documents that build a firm foundation for success.
There are several best practices and strategies that will prevent future headaches or entanglements if you set your business up for success by investing on the front end. This investment will most certainly be returned to you exponentially, and these frameworks and understanding will assist in avoiding headaches and future costly mistakes.
Start your Business with The Following Tips
Every business idea is different, but creating a foundation to start a company is universal. Here are a few building blocks to consider when starting a business:
- Create a business plan with realistic budgets and projections.
Drafting a business plan is the first critical step to transforming your idea into reality. Meet with mentors or other business professionals to guide you through the process. (hint: contact us at Stanton Law!)
- Set goals and stick to them.
Setting realistic goals will help you get through the unpredictability of a new enterprise. Consider mapping out short-, medium- and long-term goals to reach within the first 12 months.
- Seek professional legal and accounting advice before you begin the business formation process.
The key here is timing. It’s much more efficient and cost effective to engage with professional service experts before you begin the work. Allocate funds for these services in your startup budget.
- Choose an entity type that suits the needs of your business’s current and future needs.
Your legal and accounting advisors can assist with this.
- Prepare for the worst-case scenario at the beginning so that nothing comes as a surprise.
The saying is true: plan for the best, but prepare for the worst. This includes areas of business you may not think about right away, like partnership disputes and succession/exit planning, but are also important foundational business decisions.
- Create and maintain legally compliant governance documents and make sure that your business entity exists separate from your personal life.
Establish best practices to hold periodic meetings where you review and revise these documents.
Hiring the right people, understanding intellectual property and documenting your new company correctly will lay the foundation for success at your new venture. If you have additional questions or want to take action to plan for and protect your business, please schedule a consultation with us for timely and sound business advice.