6 Considerations for Startup Entrepreneurs
Aspirations are the key to any great business venture. Especially when starting a business from scratch, it is sometimes the entrepreneurial drive that keeps a business owner going. If you are reading this blog post, you likely have drive and dreams, a plan and a purpose. It is common for business owners to jump right in with both feet, driven by the will to be their own boss.
Even though this is perfectly acceptable, there are some key considerations you will want to make during the beginning stages of your business. Your startup is in infancy, perhaps it is only an idea at this point. While this marks an exciting time in your life, and we understand the pull to get things off the ground as soon as possible, we invite you to take a step back and read through the items that will be of importance to you moving forward.
These considerations will prevent some headaches in the future. Know that decisions made now have lasting impacts on your company!
Decide Who to Partner With
Who will run the business alongside you is just as important as the business concept itself. You will want to trust your partner in their business acumen. You will want to partner with an individual whom you can have a good working relationship with and who has strong communication skills.
It is also helpful to have a partner who is thoughtful, considerate and respectful of your desires for this business. You want to have someone by your side who takes this new opportunity with as much seriousness as you do. It is important to be alongside someone who you know will pull their weight and will work with vigor.
Even with the best of business and personal relationships, which is why the execution of the business’s governing document, such as an Operating Agreement for a limited liability company, and By-Laws for a corporation, are essential. Disagreements may occur in the future so these documents will be an item to reference should you find yourself in this scenario.
It is also very common to be a sole business owner. Whether this is your first business or your fifth, some individuals feel a knack for doing business alone. In that case, carefully consider if this is for you, while keeping in mind that you can add a partner down the line.
Form the Right Business
Will you be a corporation or an LLC? What about a general or limited liability partnership? Deciding the right business structure for you is one of the very first things you should do when starting your company.
Your business structure will impact your tax liability, personal liability and day-to-day operations, including the paperwork that you will be required to file with the State of Florida.
Protect Your Intellectual Property
Intellectual property is a collection of your ideas and concepts that form the basis of your business. These are non-tangible items, yet they need to be strongly protected against use by others.
You may protect your intellectual property through a handful of ways, including non-disclosure agreements and licensing agreements, as well as appropriately filed trademarks and copyrights. Before your business starts producing revenue, your intellectual property is your greatest asset.
Write up Agreements and Contracts
In the beginning of your startup, you are forming new relationships and continuing to develop existing ones. It is sometimes easy to overlook the need for written agreements, but this is a crucial part of owning and operating a business.
Written agreements are key to solving disputes, making sure all parties involved are following the terms that have been agreed upon, and keeping your business away from lawsuits.
It is a good idea to make sure all involved in the business sign Non-Disclosure, Non-Compete and/or Confidentiality Agreements. It is the best way to protect your business.
Understanding How to Operate the Day-to-Day
Have a plan on how the daily operations will run for your business. What will everyone’s responsibilities be? How will you handle conflict in the workplace? What will be your method of accounting?
Have an Exit Strategy
Although you are just forming your company and probably do not even want to think about your exit, it is something that will happen at some point, even if it is many years in the future. Think about succession planning now for the next phase of your business.
Options for your business after your retirement include: receiving retirement income; transferring your business to a family member, an employee or an outside buyer; making charitable contributions; and more.
Forming a new business from your ideas is thrilling. Make sure your goals are not in vain. These considerations are important ones to move forward in making your business the biggest success it can be.
Ask a St. Petersburg Business Attorney for Assistance
At Kira Doyle Law, we have experienced business law attorneys who can help with agreements, conflicts, the formation of businesses and more. Which business structure to choose is a major consideration in and of itself, and the attorneys at Kira Doyle Law can assist in helping you decide which is best for your unique situation. Contact us today by calling our St. Petersburg offices at 727-537-6818 or by completing the form below to schedule an appointment!