Starting a new business is always a thrilling endeavor filled with excitement, enthusiasm and fear. When to start the new business is always a question business owners often contemplate. When should the owner incorporate the business, what is the economy doing, when is the greatest need for the business, is one time better than another are all questions that business owners ponder.
It is very interesting to work with business owners and to assist them with business legal advice as they incorporate and plan their new business as well as helping them once they are up and running. A recent article in the Wall Street Journal entitled “Rising From the Pandemic’s Destruction: A Million New Businesses” lays out how many new business owners are taking the opportunity to start their new business during the recent pandemic. The article states “Americans are starting new businesses at the fastest rate in more than a decade, according to government data”. We certainly agree with this conclusion and the data as we continue to serve our clients with incorporating their business and providing business legal services to the companies.
According to the WSJ article, “applications for employer identification numbers that entrepreneurs need to start a business have passed 3.2 million so far this year, compared with 2.7 million at the same point in 2019”. This information is reflective of the pent-up demand and desire of entrepreneurs to start their new ventures. We have definitely seen a rise in the interest of business owners to start new businesses.
As most statistics indicate, many new businesses fail in the first five years. There are many reasons why the businesses fail. We encourage our clients to use our services for legal issues, questions, contract review and to use us as an independent board of directors to provide an outside look at business ideas. We also highly encourage our clients to use the services of an experienced and qualified CPA to handle the big accounting and tax issues and to have a solid business banking relationship. Many times, when the entrepreneur uses the services of an attorney, business banker and CPA, it frees up so much time, energy and creativity to allow the entrepreneur/business owner to actually plan for and run the business. That generally gives a huge boost to the company and often times is what is needed to make the business a success.
Many new business owners fail to use the services of professionals for fear they cannot afford their fees. Have the conversation with the professionals to create a path to use their services and determine how to do so economically and efficiently. You want to have a solid team of people around you to help make the business a success. Often times, the team around you has seen and/or experienced similar issues before and can help steer the business owner around the pitfalls.
So, is it time for you to start your next business? Please let us know how we can help you.