Should You Start a New Company?

Similar to having a baby, there is not “perfect time” to start a new business. However, you must think about what is going on in your life and how it will impact your ability to give the business your all. As a new business owner, you will be devoting a significant amount of time, energy and money to your entity, which may also mean sacrifices must be made in other areas of your life.

Don’t make the mistake of thinking you don’t have time to create a business plan or that it is a waste of time. Creating a business plan forces you to think through issues and helps you avoid costly mistakes. Your plan can also help you stay on track and monitor your progress.

No matter what type of business you are starting, you must have the ability to sell. Whether you are selling a product, service, or even yourself, the success of your new entity will depend on your salesmanship abilities. You must be able convince your family members that the risk is worth it. You may need to persuade investors or lenders that they should provide you financing. Having the ability to get others to “buy into” your dream is a key element in ensuring your success.

Starting a business is a financial risk. Thus, it is critical that you have a solid financial plan for your company. This may mean you are working a full-time job while starting your business on the side, or it may require you to seek investors or even take out a loan. It also means your personal finances must be in order. The typical advice is to have between six months to two years of savings to pay your living expenses before starting a new business.

While you may want to do it on your own, everyone needs help at some point. You should seek the advice and guidance of a mentor that can help you learn from their mistakes. Attempting to figure it all out on your own will only be a waste of your time and money.

If you are interested in learning more about starting your own business and how we can help, contact the legal team at The Swenson Law Firm for assistance.

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