Incorporating a Small Business
It may sound strange to say, but incorporating a small business can be scary. I have been a business advisor for many years, and I have led many clients to incorporate a small business. Many of them are very hesitant to. This is understandable. When you own a small business, you put your heart and soul into it. It is yours, and yours alone. If it succeeds, you succeed. If it fails, you fail. You are tied to small businesses as you would be tied to your wife and children.
Incorporating a small business takes it out of your hands to some degree. It means that the investors have control over some of the decisions that you make, and that some of the profit belongs to them. This leads many people to not want to get a business incorporated. This is understandable, but it is still the wrong decision. The advantages to incorporating a small business outweigh the disadvantages by far. Incorporating a business means that you have less financial liability, less legal liability, and more freedom with your own resources. If your business goes under, you are not necessarily going to go under with it if it has been incorporated. Instead, the losses are spread among the investors.
Even if your business is doing well, you should still consider incorporating it. Incorporating a small business is usually the first step to making it into a larger operation. When you incorporate a business, you free up a huge amount of capital. Even if you have been making a tidy profit on your own, you could multiply the amount that you have to work with by an order of magnitude. This is something to consider. You dreams may have to become bigger! incorporating a small business is the only way to become rich and hugely successful. Many people have taken that step, and many more will.
Before you incorporate a small business, you have to come up with a good business plan. Otherwise, all you are doing is taking the business out of your own hands. Incorporating a small business means that you have greater financial power, but with that power comes responsibility. You are almost required to expand your business, but how will you go about doing that? These are the decisions that you must make before you decide to incorporate, but you do not have to make them alone. A good business advisor can really help you.