How to Show the Universe You Mean Business About Your BusinessWhen you are getting ready to start your business, it is an exciting time full of creativity and passion and often not a whole lot of money. So you've got to allocate your resources as efficiently as possible.
What I'm going to share with you in this article will help you allocate resources where most business owners don't and it's a big part of the reason they fail. While tax, legal and money matters aren't always fun, they are the foundation of your success.
To have the best chance of making it, start by establishing relationships with the right kinds of professional advisors who will help you use legal, tax and money strategies that enable you to take maximum business risk with minimum personal risk.
Before we get into the specific relationships and legal strategies, let me explain why this is so important.
Everything you do as a business owner sends a signal to the Universe that will impact your future. If you treat your business like a hobby, so will the Universe. In contrast, if you treat your business like a global brand, so will the Universe. What kind of business are you building?
Take a minute now to think about your business 5 years from now. Do you see yourself running it? If so, how much income is it bringing in for you? Do you see yourself selling it? If so, for how much? Answers to these questions will help guide all of your future decision-making. And any professional you work with should ask you about your vision first.
Step two is to establish relationships with professional advisors who will help you get where you want to go. Every entrepreneur who expects true success should have relationships with three critical advisors - legal, tax, and money.
This is probably the last thing you want to hear because if you are just starting out in business, you probably don't have much money and you are thinking, this sounds expensive. I assure you, find the right legal, tax and money advisors and they will save you from making outrageously expensive mistakes.
Let's look at each relationship and how you can find the perfect advisor to fill each role:
1. Legal advisor - your legal advisor should be a lawyer who can give you strategic legal advice about your business. Not a paralegal. Not a document drafter. And, your lawyer needs to be the type who can grow with you and guide you throughout your business life. You don't want a lawyer who just spits out form documents you can get for yourself on the internet. Sure, you can use an internet service to establish an entity for your business, but will that internet service really help you to make the best decisions for where you want to go? Here's a lawyer test - the first question a lawyer should ask you before recommending any kind of a legal strategy is what is the 5 or 10 year vision for your business. If they don't ask, don't use 'em. Your lawyer will guide you to entity to use for your business, which varies based on the State you are doing business in and the long-term vision you have for your business. And yes, you must have an entity for your business; it's what allows you to take risk without worry about personal liability.
2. Tax advisor - your tax advisor could be a CPA, EA or even a savvy bookkeeper or financial coach. The key here is to find an advisor who is going to guide you, not just file your taxes. One of the most important startup business issues is setting up a financial record keeping system that is super easy for you to use and maintain. This is something I did poorly in the beginning and it cost me loads of money. Do it right from the start and you'll never have to worry. Your lawyer should talk with your tax advisor before determining the right entity for you.
3. Money advisor - right out of the gate, establish a relationship with a money advisor who will help you get access to funding you'll need as your business grows. A great free relationship is with your local business bank. One of the most valuable relationships I ever made was by calling up my local business bank and getting a meeting with the CEO of the bank. I got him excited about my business and he actually cared. He's provided me with access to funding sources and made it super easy to manage my cash flow as my business has grown.
About the Author
Alexis Martin Neely is a mom, writer, speaker and America's Personal Family Lawyer. Alexis makes it super easy for your family to talk about and plan for sticky subjects like money, death and taxes. For more information contact firstname.lastname@example.org.