More than half of all new restaurants fail within the first year, and the statistics for other types of business aren’t much higher. When you come up with a new business idea, you might spend years researching your idea and comparing other businesses before looking at funding or applying for loans. The most successful business owners plan for the unexpected problems that can pop up in the future.
The biggest thing you must plan for is the total cost of running that business. While you might think about things like rent and equipment, you may forget about the utility bills associated with that building, including water and electricity. During long and hot summers or cold winters, your utility bills might rise higher than you ever expected. You also need to set money aside for your workers’ salaries, any new equipment you might need, and the supplies necessary for running your business. That being said, do you have a plan for collecting on delinquent accounts or a budget in case your business gets sued?
If you want to open a business with a partner, you need to speak with a business formation lawyer as soon as possible. You each need to sign partnership documents that show what percentage of the company you both own. Those documents should also address what will happen if your partner wants to leave, how you will split any profits you make and who is responsible for any loans you secured. The lawyer can also assist you with documents that you and your investors sign. You might need help determining when and how you will pay back investors or how much money those investors can give you.
Not All Excitement
Opening a new business isn’t all excitement. It can also be slightly scary, especially when unexpected issues relating to your partner or overhead costs pop up. Leah Martin specializes in new business formations and can help you create documents between you and your investors and work out agreements with any partners you bring on board with your new venture. Make sure you consult with a Nevada business attorney before forming your business!