Starting your own business is a terrific adrenalin rush.  It is exciting and empowering.  It can all too soon become overwhelming and frightening.  Most small start-ups fail.  But you are not average and you can make your dream come true with a solid plan and advice.

Legal Structure

Choosing the correct corporate entity is a good start.  Depending on your choice, it will affect the amount of liability you are willing to undertake on a personal level, as well as the amount of paperwork.

  • Sole Proprietorship – You have all the control and all the liability. You are personally responsible for all the financial obligations.

  • Partnership – This is when two or more persons will share the responsibilities and the liabilities. All the partners are personally responsible for any financial obligations.

  • Corporation – This gives the responsibilities to a legally established entity. It functions somewhat like a person and the corporation is responsible for the financial obligations, not individuals. This can also have an impact on taxes. In order to establish a corporation, it needs to be legally established and filed with the appropriate local and provincial governmental offices. There will be fees and lots and lots of record keeping and filings.

  • Limited Liability Company (LLC) – This is a combination of a partnership and a corporation. It protects the owners from the personal liability of a sole proprietorship or partnership.

There is no perfect type of corporate structure.  Each has benefits and detriments.  Consult with an attorney and financial adviser to decide what is best for you and the circumstances of your business 

Growth

You have a great product or service.  Before you go too far, make sure there is enough of a market to sustain a business.  Know your target audience and develop ideas of how to get the word out.  In other words, marketing. 

Once things start to roll, be sure you can sustain the product.  Be sure you have the capacity and funding to move forward.  You may want to locate and consult with a “Growth Hacker”.  That is someone who can see the big picture and yet dissect it into manageable bites that you can handle as an entity and that your financier will view as productive and reasonable.

Follow the Money

One of the greatest concerns in a start-up operation is cash flow.  The entity needs to begin with strong financial flooring and then strong controls to be sure you can pay all the bills.  Part of this relies on accurate and timely record keeping, including inventory, personnel, and utilities.  The more you can pay on time, the better you will look to your backers, especially if you want a loan.

Goals

Make sure you document all your successes and set reasonable and achievable objectives.  This applies to the overall scope of the business plus anyone who is working for it.

A good idea is to work closely with reputable accountants who will guide and advise you along the way.   They can direct you to experts or mentors who will provide invaluable assistance in your venture.

Contact your Accountants today click on this link —> https://capexcpa.com/contact

- The Capex Team