Tamara R. Cornish Business Formation Law Blog on Lawyers.com

In the beginning…

Starting your own business isn’t a simple task given the rough economic and heavily regulated environment today. You must understand what is necessary to accomplish your goals. You need vision and a plan. But where do you start? How do you get from point A to point B? How do you stay on track? Thorough research is critical when planning your new venture.  Breaking that research down into a manageable plan is a necessity.  Although you can attempt to do this on your own, professionals such as attorneys and accountants can help you make sound decisions when establishing your business.

The first step…

First, focus on developing a business plan. Initially, you will only be able to develop a portion of your business plan, so don’t panic. Your business plan will evolve with the growth of your business should you pursue it.  During this stage, the business plan can be used as a tool to focus your research on the issues that will help you assess your new venture. If you need some direction regarding your business plan, go to www.sba.gov for a general template and some great resources to help you get started.

The strength of your business plan will hinge on your research. In your plan, you’ll need to include the products and/or services you want to offer as well as identifying any competitors. Make sure you research your offerings and your target market before including them in your plan. You probably don’t want to open up a sandwich shop in an area with 22 sandwich shops within a five mile radius but then again, maybe your research will reveal that the population can support 30 sandwich shops. You’ll also want to identify your method of sales. There are numerous regulations that dictate marketing a product or service via email, mail and phone.  Will you have employees? How will you handle your accounting and payroll? Do you need financing? Who are your suppliers and how much will they charge you? The answers to these questions are key factors in your analysis.  Once you’ve attempted to answer these questions and have decided to move forward, it’s time to seek advice from professionals.

Finding meaningful advice…

The guidance of an attorney and accountant is instrumental in developing your business strategy.  The lines of communication must be clear between your attorney and accountant to minimize any confusion. If you followed the first step, you already have a general roadmap, your business plan, to present to your team of professionals.  Make your business strategy sessions meaningful. Ask each professional for a list of issues that will be discussed and research each issue prior to meeting. Be sure to write down key words or phrases to help trigger your memory when discussing that issue. Also write down any questions you have and remember to ask!  Don’t waste time on meetings that don’t result in action.

Many people ask why they shouldn’t employ services like LegalZoom for their business and personal legal needs. These automated services are just that. Please read all disclosures before utilizing these types of services. LegalZoom’s disclaimer states that it is not a law firm and should not be used as a substitute for an attorney. It also states that there is no attorney-client privilege and cannot provide legal advice.  A licensed attorney is regulated by law for your protection.  With an attorney, you’ll get advice tailored to your situation. When you don’t understand something, you can simply ask for clarification. If the advice of an attorney won’t suit your budget, visit your Secretary of State’s website. Although they cannot provide legal advice, their website has helpful resources.