A lot of different ingredients typically make for a fine meal. The same is true when it comes to creating and sustaining a fine business — a point we sought to highlight in an article we published not long ago.
The focus of that item was on the value in following the proper steps for getting a company legally organized and registered with the correct North Carolina and federal government agencies. By offering some insights about business structure we sought to show how some risks of failure might be avoided.
At the heart of that guidance is that even though the prospect of launching an entrepreneurial venture may be gilded with romantic visions, it’s important to balance the picture with a healthy degree of reality.
As one business finance adviser puts it starting a business is like getting married, though the business failure rate may be higher. So he offers three thoughts for how to improve the chances of success.
- Share financial risk. Going solo may be attractive, but by bringing in additional investors you have a better chance of seeing your business rise like a great soufflé.
- Know your costs. Whatever business you decide to begin, you need to be aware of the costs you face as a self-employed person. That means identifying all your production and administrative expenses, including planning how you’ll cover your tax and health coverage obligations. Then, you have to price your good or service so you meet those costs and then some.
- Give yourself a deadline. Good things may come to those who wait but not when it comes to hitting income self-sufficiency in business. The adviser says set a clear date from the start for when you expect to have a sustainable income for yourself and stick to it. In other words, be prepared for the possibility of failure and have a plan for it.
Seek experienced legal counsel. Strike a good balance between imagination and reality, and the scale is more likely to tip in favor of business success.