The 80% failure rate for small business is real, but there are areas that we can focus on to improve our chances for success. Over the next two weeks, I will review several key areas of the business that we as small business owners must pay attention to and address it we want to be in the 20% of businesses that succeed.
Part 1 - Creating an Entity for Your Business
This should be your number one focus as a new business owner, once you decide to move forward with an idea and business plan. Many new owners tend get caught up in developing the product and service, and they tend to put the legal aspects on the side until they are confident that their business idea will work. Reserving cash can also play a role for the delay in establishing the entity for the business.
A business entity, such as a corporation or LLC, provides liability protection. According to the Chase Law Group (chaselawmb.com), “If you are sued based upon an occurrence arising during your business operations, a properly formed and maintained business entity can limit exposure to a judgment solely to the assets of the business, and not your family.
Learn more about creating an entity for your business - http://www.chaselawmb.com/the-importance-of-an-entity-for-your-business/