Important Tips for Starting Your Own Business

Starting one’s own business is an exciting endeavor. Getting off to a right start will help one to avoid some of the pitfalls typically encountered. One of the first things to do when considering starting your own business is for you to conduct research to find out what licenses you may need, if any. You should seek out a reputable and knowledgeable accountant and attorney who can give you invaluable advice about structuring and operating the business. One will need to decide whether to form a corporation or limited liability company and more specifically what type of corporation or company.

It is important, whether you are starting a service business or you are manufacturing or distributing goods, to have an attorney assist you in not only forming the business but in preparing a form of contract you can use with customers, in order to set forth the responsibilities of the parties, the price, and the payment schedule, in order to avoid disputes. A professionally written contract tends to have the effect of people treating the terms of it seriously and, thus, complying with them. Another important aspect of starting your own business is governance. When there is more than one owner of a business, disputes are bound to happen. A way to minimize disputes is to have a well-written shareholder agreement prepared for the company. Such an agreement should spell out the obligations of each owner, in terms of their day-to-day duties, how much of their time is expected, and there should be a mechanism for buying out a partner who no longer fulfills his/her duties. Of course, death and disability of a partner is also an important topic to be dealt with. If a dispute does arise, it behooves all the parties to come to a resolution without resort to costly litigation. Mediation is certainly an option which is less likely to disrupt the business.