Starting a business?
It’s easier to get where you want to go when you start with a strategy to get there.
There are a lot of ways to start a business. From the easiest, pass-through model of a sole-proprietorship or single-member LLC to a C-class stock corporation and everything between. Are you going to have employees? Do you have a partner or partners? Do you have investors? Are you going to raise investment? How much and when? What kind of business are you starting? How much risk are you willing to take and how do you want that risk distributed?
Each model of business offers advantages and disadvantages. For instance, sole-proprietorship is the easiest form to start but doesn’t protect your personal assets should something go wrong. A simple single-member LLC will protect your personal assets (in most cases), but requires a modest amount of overhead to keep the company running. On the other side of the spectrum, stock-bearing corporations give you wide latitude to raise investment and protects (again, in most cases) you and other shareholders personal assets, but has a higher cost to form and maintain.
The form you choose does not prevent you from morphing form later, but can be distracting and time-consuming. The need for change usually comes at a time when you need that time to apply toward the business that is necessitating the change. It’s a delicate balance of cost, value, risk, and maintenance that should be considered.
Starting a business? We’ll help, call us today at 1-800-588-2593.
Whether it’s drafting a contract for a partnership, investment, sale, lease, indemnity, engagement, nondisclosure, noncompetition, employment, or termination, having an enforceable contract with the right terms can make the difference between success and failure. Once the contract is in its initial form, negotiating terms and reducing those terms down to a mutually agreeable form is an art and best left to an outside party that won’t be involved with the execution. Bad feelings over contract negotiation can sour and spoil a relationship before it even begins.
You need someone to work in your best interests. Call us today at 1-800-588-2593 to setup an appointment.
Building a Business
Contracts are important when things are going well between parties and indispensable when they aren’t.
Securing an investment
When organic growth isn’t enough, outside money can hurt or help.
Your business doesn’t just need money, it needs the right money at the right time, under the right terms. Bringing on investors can open you up to opportunities you wouldn’t otherwise have access. Just because you need money, doesn’t necessarily mean you need that money. There are times in a businesses life where infusing capital can seem like a blessing but can quickly become a curse. By taking on financial partners, you are placing yourself in a position of duty to that money and those partners. Here are some helpful questions to ask yourself to see if you are investor ready:
- Is your business plan ready? Is your historical picture clear and accurate? Are your future projections reasonable?
- Are your business ducks in a row? Are your financials ready for audit? Do you have other financial partners that need to approve of you seeking additional capital? Do you have any pending litigation that might be out there? Are your business processes well documented? If you go faster mistakes are multiplied by the number of dollars behind them and investors get cranky when they pay for others’ mistakes
- How much growth does the money buy you? Don’t think in terms of dollars or market, think in terms of months or years that it brings your business plan in.
- How much do you need? In tranches or all at once? Does less work? Does more move you even faster?
- Is your business over- or under-valued? Ask for too much and potential investors walk away, too little and you look desperate or foolish.
- Are you willing or able to give up control? If no, is the amount you’re asking for, given the current value of your business, going to allow you to keep control?
Bringing on outside investment is going to be one of the biggest moments in your business’ life, preparing for the search, negotiating the terms, drafting the agreements, and caring for the business filings take the skilled hand of a seasoned professional. Call us today at 1-800-588-2593 to setup a consultation.