Global Resources LLC has the expertise to help entrepreneurs launch small businesses. Starting a business is a huge commitment that can reap many long-term rewards. If you’re looking to become a business owner, we can help put you on the path to success.
If a new business is on your horizon, here are three general tips that can help you reach your goals:
- Save as much money as possible before launching – All too often, people go into business without any savings, exclusively using loan money from friends, banks or the SBA. They expect to be able to start paying the loans back right away with their profits. What these business owners don’t realize is that it can take months or years to make a profit. And once a lender discovers a business isn’t as profitable as expected, the lender is likely to call in the loan or refuse to renew it for another year, if the terms of the loan agreement allow for such action. Often new business owners then have to take out home equity loans or use credit cards to pay off their loans (which puts their home and credit rating at risk).
- Protect your personal assets – When you go into business for yourself, you are usually personally liable for all judgments and debts that the business incurs. This includes business loans, taxes, money owed to suppliers and landlords and any judgments against the business as a result of a lawsuit. If you don’t protect yourself, a creditor can go after your personal assets, such as your car and your house, to pay for these debts. The type of legal entity you chose for the structure of the business should be evaluated for its effect on the personal liability of the owner.
- Understand how — and if — you will make a profit- You should be able to summarize how your business plans to make a substantial profit. For starters, you need to know your costs: how much you’ll spend purchasing inventory, paying the rent, compensating any employees and covering what is likely to be a surprisingly long list of other costs. Then you can figure out exactly how much you need to sell each month, for how many dollars, to cover those expenses and have an adequate profit besides.
To learn more about us and / or to schedule your complimentary appointment with the business experts at Global Resources, call us at 855-338-0266.