Starting a small business can be among the most rewarding yet challenging enterprises you undertake. While owning one's own business is the dream of many, the unfortunate fact is that the majority of small businesses fail, and within a relatively short time. With careful planning and advice from others with knowledge and experience, such as a Texas business attorney, you can maximize chances of having a successful operation.
The Business Plan
The single most important factor in creating a successful business is having a viable, well thought out business plan in place. Without a clear vision of a business' goals and purpose, and description of how to achieve these, a business owner is likely to drown in uncertainty and indecision. The business plan should describe in detail the form of business, that the owners will be, their roles in the enterprise, staffing, raising capital, and much more. A Texas business attorney will help you draft a clear and well-considered plan for your business.
The Form of the Business
You will need to decide on which form of business is best suited to your needs and for the enterprise, itself. If you are concerned about personal liability should the business fail, for instance, you would want to create an LLC or corporation. If yours is a very small enterprise, and you do not mind flow-through taxation, a sole proprietorship or partnership may be appropriate.
When you start a small business it is very important that you set it up and maintain it in accordance with Texas business laws. A Texas business attorney can provide you with the guidance you need to avoid the pitfall of penalties for failure to meet regulations. Among the most important of these is how you manage, hire, and dismiss employees.
As a business owner you will need to make sure that your enterprise properly manages its finances. It is important from the outset to determine how taxes will affect profits as well; it is common for a small business to operate in the red for several years before seeing a profit. Depending on the business form that you use, it may be possible to declare losses as deductions.
Perhaps chief among concerns of prospective small business owners is determining how to raise the necessary capital. One does not have to be independently wealthy to start a business, although you may decide to invest some of your assets to do so. Most small businesses finance their start up with a loan from a bank. Having a strong business plan is vital when applying for a business loan; the bank wants assurance that your business has a good chance of succeeding in order to protect its investment.
Another way to raise capital is to bring on investors. The advantage of this method is that you don't have a loan to repay, which can eat into profits during those first challenging years of operation. The downside is that the investors become part owners in the business, and you thereby lose a degree of control of the enterprise.
For More Information
If you have questions or need assistance from a Texas business attorney for your small business start-up, Peterson Law Group can provide you with high quality legal representation and guidance. Call to arrange a consultation today at 979-703-7014.