5 Things Your Business Needs

Small Business Owners

You’ve always wanted to own your own business.  You may have one great idea, or you may have one-hundred good ideas; or you may just be tired of working for someone else.

Regardless of your reasons, you’ve decided to open your doors and you aren’t really sure where to start; or perhaps you’ve already opened your doors and need guidance. 

Let’s discuss 5 things your business needs.

Business Plan

I know the first thing you think you need is money, but it isn't.  The first thing you need is a Business Plan.  You wouldn’t start building a house without drafting a set of blueprints first, would you? 

Your business plan is the framework for your business where you set business goals, identify the purpose of the business, and define your market industry.  How to Write a Business Plan

Formation Agreement

As we have previously discussed, your new business is accident-prone and you’ll want to take steps to protect yourself from your business’s liabilities.  When you select a business structure, you’ll draft a Formation Agreement, which essentially is an agreement between you and the business regarding how the liabilities will be handled.  Select a Business Structure

Startup Money

With a business plan and structure, now you need money.  There are several options available for financing your start-up expenses, the key is choosing one that is right for you.

The most common option is to obtain a small business loan or grant, but anyone that considers financing you is going to want to see your business plan.  Find Loans or Grants

Operation Manual

Drafting an Operation Manual will give you and your employees direction in your day-to-day operations.  It should outline the procedures for performing certain tasks, and provide structure for the management of personnel. 

Business Attorney

If you own, or plan to own, a business, then you need a business attorney that can help you draft the documents necessary to get your business off the ground.

Your business attorney can assist you in drafting your business plan and increase the likelihood that a lender will take a chance on your dream.  Your business attorney can help protect your family’s assets if the business can’t survive this economic climate.

Most importantly, your business attorney can give you the tools to succeed.

--Authored by Matthew L. Harris, Esq.,

Matthew Harris Law - Business Law Division

1001 Main Street, Suite 806, Lubbock, Texas, 79401-3322

Attorney@MatthewHarrisLaw.com 

(806) 702-4852 

www.MatthewHarrisLaw.com

Your Accident Prone Baby Business

A Dream Come True

When you were just a kid, you knew that you wanted one someday.  You talked about all of the great things it would do for you one day.  You even went as far as picking out a name.

We're talking about owning your own business of course.  However, just like a baby, new businesses are sometimes prone to accidents too.

Except, when your baby has an accident, you don’t lose sleep wondering whether you’ll be able to keep your house.

Cover Your Assets

If you’re considering owning, or if you already own, your own business, then you should consider protecting yourself from the liabilities of your business.  Otherwise, you may find yourself paying for a long time for a simple business decision.

Under Texas law, you can organize your business structure in a manner that protects you personally from the debts of your company.  Some of these structures are: Corporations (Inc.), Limited Partnerships (Ltd.), and Limited Liability Companies (LLC).

Selecting a business structure depends on your Management plan, long-term goals, investment options, and desired tax methods.  (Personally, I prefer paying fewer taxes)

How Bad Could it Be?

Let’s pretend for a moment that you’re considering opening up your own flower shop.  You enter into a 1-year lease for your storefront, you negotiate a contract for a steady supply of daisies, and you lease a billboard for advertisement.

Since you don’t want to waste time with limiting your liabilities, you decide to just start ordering everything with personal checks, signing leases in your name, and entering into contracts as an individual.

Unfortunately, business isn’t doing so hot and after a few months you have to close up your shop.  After closing the doors, your business mail starts showing up at your house and those companies are demanding that you are personally liable for the company’s debts since on paper, it just looks like you’re an eccentric individual with a serious flower addiction.

What Else Could You Do?

Let’s go back and imagine that before you started signing your life away, you organized as a Limited Liability Company (LLC).  Then, instead of signing your own name on all of those leases and contracts, you signed your company’s name as the responsible party.

Now fast forward to you closing your doors; it’s like the business was the one that entered into all of those obligations instead of you.  When the creditors come calling, they come looking to liquidate the company’s assets and not your personal assets.

Get yourself some protection from your baby and you’ll get a little better sleep at night.

--Authored by Matthew L. Harris, Esq.,

Matthew Harris Law - Business Law Division

1001 Main Street, Suite 806, Lubbock, Texas, 79401-3322

Attorney@MatthewHarrisLaw.com 

(806) 702-4852 

www.MatthewHarrisLaw.com