We are blessed to live in the greatest country in the world. Being free to pursue life, liberty and happiness is truly a blessing that cannot be overstated. Especially in this election year, we Americans participate in the process of choosing our leaders and thereby are set apart from so many in the world who do not enjoy such rights. Another of the many manifestations of our freedom in the USA is the right to go into business for ourselves. Many people decide to make the world a better place through offering a product or service with the hope of improving the quality of life for themselves, their family, their employees and their customers.
Of course, starting or acquiring a new business is a daunting challenge for anyone. There are many decisions to be made beyond the obvious. People sometimes rush to get their business started knowing little more than that they want to be in the type of business to which they are drawn. People often choose a particular business because they have a history or experience with the product or service they plan to provide. Some of those people assume that extensive knowledge about a product or service will automatically translate into a successful business delivering that product or service to the public. While knowledge of a product or service is vitally important, it can be almost useless in the establishment of a successful business unless it is coupled with an understanding of basic business principles. Unfortunately, many new businesses fail or suffer because the owner does not possess the skill to run the business side of his or her business.
Philosophically speaking, most people going into business strive to minimize risk and maximize profit. In order to achieve these desired results, it is necessary to understand a number of things. The form of business entity to be used is a threshold question which is often based upon the amount of investment, nature and degree of risk as well as accounting methods desired. Accounting for startup costs, inventory, sales, and expenses is crucial to knowing whether a business is viable. Many businesses actually fail long before the doors are closed. Additionally, the new business person needs to understand how to protect personal assets from claims that may come through a new business venture. The list goes on and on.
The answer to the problem of lack of knowledge is simple to state, however, it is often difficult to achieve. While it is easy to say that all successful business owners must possess or acquire an adequate level of knowledge of business principles, it is another matter to actually obtain such skills. The business owner without such skills is faced with the challenge of obtaining the needed expertise in time to avoid disaster. Generally, there are two methods. One, the information can be acquired through study and experience, or two, it can be acquired through the use of professionals such as attorneys, accountants, bankers, marketing specialists, etc. A balanced approached will best serve most new business owners, whereby professional advice is sought and employed until the owner gains the experience needed to personally make wise and successful business decisions.
The Hubbard Law Firm has been assisting businesses in the Humble, Kingwood, and Atascocita area for over 25 years. If you have questions, please visit our website at www.patrickhubbardlaw.com/business or call us at 281-358-7035, to see what we can provide for you.