Build Your New Business On A Solid Foundation: Get Good Legal Counsel At The Start

It’s more tempting than ever to handle the legal set up of a new business yourself. Online forms. Web-based business entity registration. You have enough start up costs, so why not save money on legal fees now when your business is small. You can always hire a lawyer later to fine tune the details—right?

Not exactly.

“In the decades that I’ve been counseling and coaching business start ups I see people make this mistake over and over,” says Peter Ancone, self employment blogger — https://createyourdreamjob.com — and book author and lecturer on self employment. “Setting up a business is more than registration. You need to know what kind of business entity best fits, and will continue to fit, your business model in the future.”

The corporate entity documents you file will define your enterprise as it grows. Whether it’s an Operating Agreement for an LLC, or a Charter and Bylaws for a Corporation, business start ups often make their first mistake by trying to handle these steps themselves.

“When this happens, the owner manager of the start up doesn’t realize what went wrong until it’s too late. These business governance documents will set the procedures, and parameters, for running your businesses,” explains Stephen J. Labroli, Esquire, business law attorney and Partner in the Delaware Valley law firm of Leonard, Sciolla, Hutchison, Leonard & Tinari LLP (https://www.leonardsciolla.com/news/).

 

Stephen Labroli practices in the firm’s Business Law and Commercial and Civil Litigation practice groups. He is admitted to practice in both Pennsylvania and New Jersey.

Which business entity form fits your enterprise?

At this point, you should have considered which legal entity your enterprise should be. Below are the types of legal entities you should be considering.

Sole Proprietorship

A sole proprietorship is the most basic type of business to establish. You, alone, own the company and are responsible for its assets and liabilities. Learn more about the sole proprietor structure.

Limited Liability Company

An LLC is designed to provide the limited liability features of a corporation and the tax efficiencies and operational flexibility of a partnership. Learn more about how LLCs are structured.

Cooperative

People form cooperatives to meet a collective need or to provide a service that benefits all member-owners. Learn more about how cooperatives are structured.

Corporation

A corporation is more complex and is generally suggested for larger, established companies with multiple employees. Learn more about how corporations are structured.

Partnership

There are several different types of partnerships, which depend on the nature of the arrangement and partner responsibility for the business. Learn more about how these are structured.

Whichever entity you choose, make sure you hire a qualified attorney to form the entity. I have seen many enterprises end up with a truckload of troubles because they failed to spend the money needed to obtain good legal advice.

Are You Ready For Self Employment?

Assessing Your Core Skills and Personality for Success In The Self Employed Life.

For most of us, our working life impacts our daily life in many ways. Often, it determines where we live, when we sleep or eat, how often we see our family, or even if we can have a family, the quality of our life, as it relates to income and earnings, and the quality of life as it relates to personal time. These are very strong and attractive reasons for hiring yourself or starting a business. So, now you’ve done your homework, evaluated your product/service, matched it/them to market opportunity.

You feel strongly that your enterprise idea is a sound one and that the self employment life is attainable. The next question is: Do you have the core skills and temperament to do it? This is often where some new enterprisers drop the ball. They are frustrated with their current working situation, or they see a great opportunity and get caught up in the moment, moving ahead, into the self-employed life, without a thought of their personal suitability.

Here are a few key points you need to consider. If you answer in the affirmative for most of these, then you may make a good candidate for self-employment.

Results Matter to You. If you are ready to lead and focus on getting the job done, you will most likely do well as an enterpriser. Not so valuable, however, is obsessive tinkering or perfectionism. Success in self-employed enterprises depends on productivity and efficiency.

You Are a Proactive Person. If you are a planner, and the kind of person who sees opportunity and acts on it, then you possess one of the most important qualities for self-employment. If your personality is more reactive than proactive, or if you are one who prefers to let others take point, then you will be better served in a conventional job.

You Believe in Working Smarter, Not Harder. It has become fashionable to brag about working long hours at the job, and billing a high number of hours. This is fool’s gold that people wear as a badge of honor. Being a beast of burden is not an honor, it’s a slight. 

You Want to Benefit Directly from Your Ideas and Work. If you’re going to be putting in the time and effort, you should reap the full reward. For others, the trade-off of their time and talent for a regular paycheck is sufficient.

You Want the Opportunity to Determine Your Income. When you are self-employed, you are not limited to a salary set by your employer. Your earning power is, for the most part, in your hands. Of course, there are other factors such as market conditions and competition, which can impact your earning potential. Still, the sky is the limit in terms of what you can do to improve your earning situation. 

You Aren’t Afraid of Risk. It takes money to make money and business is risk. If you cannot handle risk, or if you freak-out about losing money, don’t even consider self-employment. Whether you are a contract-for-hire 1099er, or you run a full-blown business operation, it’s likely that you are going to lose money at some point. If you are the kind of person who cannot put such things behind you, then you’re better off in a traditional job.

You Are Disciplined.  Success as a self-employed enterpriser requires a dedication and focus that is internally driven. In most situations, you will be the person determining the schedules, deadlines, key points of completion, etc. This is good and bad. While you get to choose how and when the work gets done, it also leaves opportunities for procrastination and goofing-off. It’s essential that the self-employed individual hits his or her marks, setting regular goals and adhering to them. Whether you work alone at home, or you have a business with employees, it’s vital to maintain a working discipline.

You Are Resourceful.  Over the years, I have observed that when posed with a difficult problem, many people will point out the obstacles to solving the problem. I have also noticed that enterprisers, when posed with a similarly difficult problem, tend to focus on the solutions to the problem.  In the end, both may find the answer, but the typical self-employed person steps forward with ideas and support. Many employees have been conditioned in the cover-your-ass mode, and often, the first things from their mouths are reasons why they might fail. The enterpriser is oriented toward challenges and finding answers. 

Personality Types Who Should Probably Avoid Self-Employment

Procrastinators: Without someone forcing them to do their job, they will put off work until it drives them out of business and self-employment.

Perfectionists: Beauty may be in the details, but the obsessive pursuit of perfection will reduce productivity and lead to a loss of profit.

Poor Time Managers: People who lack the ability to efficiently manage both short- and long-term time will struggle to remain successfully self-employed.

Poor Planners: Those people who prefer to “wait-and-see” usually do not work well in a self-employed environment. Being an enterpriser means being proactive, being a dreamer/schemer (I mean that in a good way) who systematically seeks opportunities, then develops strategy and tactics to capitalize.

These are some of the personal considerations and assessments that you should make regarding your ability to start and sustain a successful self-employed enterprise. If you feel you have the capabilities to do so, then read on and learn the steps you will need to take to make this dream a reality.

___________________

Learn more about self employment in my book, NEVER WORK A DAY IN YOUR LIFE.

GET IT HERE!

 

Tips To Creating A Vision of Your Business: Critical Considerations

Every great ambition begins with a vision of what can be. The difference between those who attain those dreams and those who don’t is how well they shape that dream. This is what separates the visionary from the dreamer. A visionary will take the raw dream, and mold and shape a clear picture of the end result: constructing a blueprint that will guide the enterpriser to ultimate success.

Molding your dream as a self-employed enterpriser will require progress through a process of research/investigation. Here are five tips to shaping your vision.

  1. What is the product or service that will form the basis of your enterprise? In business jargon, this is your core business. Do these involve certain core skills that you possess (e.g. graphic designer, carpenter, chef, etc) or will your business be built around your knowledge and/or experience (e.g. consultant, physical therapist, former residential construction project manager). This may sound like a simple question to answer but consider it carefully. It’s vital that you marry your core business with market opportunity.
  2. What is the opportunity? Is there an established market for your enterprise? Is there room for a new player (you) in this market? Assessing the market potential, that is to say, the amount of opportunity, will give you a preview of how successful your new enterprise can be.
  3. Where do you see your enterprise in five years and what will you be doing? This is another critical consideration as it will shape the format of your business. For example, do you foresee needing to hire people in the future or do you see your enterprise as a “1099er” type venture in which you are the sole provider of services? Answering these questions at the outset will help to avoid costly mistakes or disappointment in your working life as an entrepreneur.

The Path to Picturing Your Enterprise 

Answering the preceding three core questions about your enterprise is essential. However, what if you have insufficient data, or don’t have enough information to competently answer these questions?  Here is a suggested pathway. 

  • Research similar businesses – There is no substitute for seeing how someone else has done it. Unless you have created a totally new enterprise in a brand new market, there are probably ventures out there that have similarities to yours. Find them. Study them. Learn their histories.
  • Talk to people who are in similar enterprises – In addition to doing research on businesses like yours, speak with those engaged in similar enterprises. Not surprisingly, people are more than willing to talk about their enterprises, as most are proud of what they have accomplished.
  • Get to know people who are self-employed – The more self-employed people with whom you speak, the more perspectives you will get on what it’s like to be an enterpriser. 
  • Analyze and assess the risks and potential earnings – Before going into any enterprise, be sure to go in with eyes wide open. This may seem obvious, but it’s amazing how many people I have met who started enterprises based on informal or incomplete research regarding potential profitability. For example:

– If you are starting an enterprise in a new market, start-up costs will be higher and time required to turn a profit may be longer.

– If you are launching an industrial or heavy commercial enterprise, you may require capital. This is also true for inventions that require manufacturing.

  • Determine the human requirements to make your business work – Can you start your enterprise without employees? Will you need to hire people, or to use specialty contractors? The number of people needed for your business is a major component in launching your enterprise and it’s vital that you do a thorough assessment.

One of the cardinal rules of a start up is that the enterpriser –– you, in this case –– have a clear vision of what the business is, how it will work and what form it will take. 

________________________________

Need some guidance and direction as you plan your own enterprise. Check out  NEVER WORK A DAY IN YOUR LIFE!  This handy go-to-guide provides a concise, step-by-step introduction to self employment.

The Self Employed Life Is Looking More Attractive To More Workers.

 

Thinking of making the jump from employed to self employed? There may be no better time.

Making it to the corner office or C-Suite may no longer be the American dream. 

Reports and studies show that the self-employed will grow to 33% of the workforce in the coming years. According to a recent study by Fresh Books offers accounting and invoicing software services designed for self-employed professionals, some 27 million Americans will leave full-time jobs from now through 2020, bringing the total number of self-employed to 42 million. FreshBooks surveyed thousands of self employed and employed persons to form the basis for the report.

    The Bureau of Labor Statistics (BLS) –– which counts self employed workers in different ways–– reported in one count that  there were about 9.6 million self-employed workers in 2016—and BLS projects this number to increase to 10.3 million by 2026. That’s a 7.9-percent growth rate, slightly faster than the 7.4-percent rate projected for all workers. Some of this growth is in areas where self employment is more prevalent such as farming, carpentry, hair styling, childcare and real estate agents.

    However, there will be significant growth among the self employed in the coming years within the arts, design, entertainment, sports and media industries, with 25 percent of jobs in these occupations are projected to be for self-employed workers in 2026, the highest concentration of any group says BLS.

   Opportunity for the self employed is clearly growing, but what about the desire to hire yourself? Well, that’s on the rise too as a a genuine mind shift is occurring within the ranks of the traditionally employed.                                   

What’s Driving This Mind Shift?

Along with this new way of thinking, employees – especially those in large corporations – are experiencing problems at work that have always been present, but have now mushroomed to the point of exasperation. Here are a few common refrains:

  I am doing twice the work that I did before, and I’m getting the same pay.

  My department has lost people, and they’re not being replaced. Management is making us pick up the slack. I can’t get my real work done because I’m saddled with non-essential things such as team-building exercises, management seminars, endless meetings, and other, politically-driven nonsense.

  • It’s difficult to be really productive when operating systems and procedures are constantly changing. Just as soon as I get used to a system, and can be productive with it, the process changes.

Lack of Productivity: Lack of productivity in core businesses often leads to non-competitiveness in the marketplace, and that leads companies to seek profits from acquisitions, or by selling off parts of the corporation, which tends to make the entity even larger and less nimble.

Office Politics: Big corporations get the rap for this problem, but in my experience, it’s present in smaller organizations as well. I have worked for organizations with less than 30 people in which office politics drastically affected productivity and growth. In mega-companies, office politics just becomes more prevalent.  

Unrealistic Work Goals: The growing trend in the corporate sector is to grow LEANLY, which – in the new workplace – sometimes translates into making do with fewer people. People who leave are not replaced, and the remaining team members are asked to carry increasingly larger burdens, often reducing work quality and employee satisfaction.

 High Turnover/Constant Change: In my discussions with corporate employees, many report that they feel frustrated and unproductive with frequent changes in managers and/or management policy, work practices, IT systems, and other aspects of daily work life.

The Self Employed Life Is Looking More Attractive                         To More Workers.                     

  From conversations with those seeking advice and insights into the self employed life, it’s become apparent–– to me, at least–– that the traditional employed life has given up some of the advantages it once held over self employment.  Among these are:

1- Job Security: This perk has been declining in American industry since the  1970s and pretty much went out the window during the Great Recession. One of the popular arguments against self employment was “lack of security”.  Workers are realizing in greater numbers than ever before that you are more   secure when you employ yourself.

2- Health Plans, Pensions, Benefits: These perks of the traditional employed life are on also on the decline. While Health Plans are still available, employers are doing what they can to reduce this cost by hiring more part-time employees, shifting to alternative plans in which the employees pay more in to the plan. As for pensions and retirement plans, these aren’t what they were 40 years ago, but they are still many employers matching employee contributions.

3- Flexibility & Life Quality: This is one of the biggest factors driving new interest in self employment. There are legions of 1099ers out there who realized that they could work from home or set their own hours working in a gig environment and earn as much, and in some cases more, than they made as employees.

It seems like forces are aligning to make the time ripe for taking the leap from serf to lord of your own lair.

_______________________________

Need some guidance and direction as you plan your own enterprise. Check out  NEVER WORK A DAY IN YOUR LIFE!  This handy go-to-guide provides a concise, step-by-step introduction to self employment.

 

Retirees and Laid Off Personnel Can Find Hope In Self Employment and Start Up Enterprises

 

Although the news today is full of articles regarding the increase in employment and the urgent needs for skilled workers in select areas of the economy, there are still a significant number of layoffs and forced retirements in corporate America.  Should you find yourself in such a distressing situation, look at it from a fresh perspective. It just may offer the opportunity to re-shape your working life and  enhance your personal life.

Necessity is the Mother of Opportunity. 

The stories abound of people who make something sweet from the bitter lemon of a layoff or forced retirement. Here are three examples of people who navigated this difficult transition.

DONNY was an executive vice president at one of the nation’s largest banking conglomerates –– living a life that he loved and had worked hard to achieve –– when he was laid off in the Great Recession. Although he had a modest retirement package and savings, Donny’s age–– over 55–– and a slow economic recovery were working against him. Three years later, his savings diminished and few interviews coming his way, Donny decided to go into business. He thought of his experience in banking when he was young, handling mortgages and title transfers. This was something he knew that he could do, so he began looking for a place to set up shop. He decided that since the nearest town was a county seat, there would be a need for these services. Nearly five years after he started, Donny is making a good living from his business and spending more time with his family.

HALEY was working as a field auditor for one a major accounting firm and hated the travel. With a two children under twelve, Hillary recognized that she wanted to spend more time with her kids before they got too old. However, she couldn’t afford to leave her job. When layoffs came, she viewed it as the opportunity she needed. The severance pay helped her to start a local CPA firm oriented toward small businesses in her community. Haley built a strong book of small business clients by keeping her expenses low–– working from home and working solo. Today, with a comfortable income, Haley has developed both a life style and work style that fit her well.

Convert Your Passion Into A Paying Enterprise

CHARLES is a passionate golfer. He loved to say that when he wasn’t at work, he wanted to play golf, and when he wasn’t playing golf, he wanted to talk golf. Charles was more fortunate than most in that he was a salesperson for a large manufacturer that produced control panels for utilities. Often, he would go on golf outings with prospects or clients who liked to golf, but there was all the other time he spent in meetings, or in the home office, where he dreamed of the greens. One day, opportunity literally showed up at his door when the regional VP of his company asked him to organize a day-long golf outing for a large party of clients. “I don’t want the club to do it, Charlie, they always screw things up. This is a job that I know you can do better than anyone.” And Charlie did do it better, because he knew and loved the entire golf experience. When it was over, one of the company’s clients said to Charlie, “This was one of the best golf outings I’ve ever attended, Charlie,” and then jokingly added, “You should do this for a living!”  Those words resonated with Charlie when his company outsourced their sales to an independent contractor and Charles was let go. In less than two years, he was selling golf event management services for large corporate and non-profit organizations.

Two Important Ingredients

If you look at these examples closely, you should notice that all three successful transitions have two common elements:

    1. Find a need and fill it: This old axiom is as true as it ever was. All three of these folks determined there was a need for their product or services.
    2. Marry your core skills/experience to opportunity: All three of our enterprisers looked at their core skills and experience, stripped away the corporate layers to which they were accustomed, and fashioned enterprisers around these core skills.

So, whether you seek opportunity first and then merge it with your core skills, or the other way around, these two ingredients–– when present–– will be integral in making the successful transition from employed to self-employed.

 

_______________________________________________

ATTENTION HR outplacement officers: HIRE YOURSELF! is a course offered by Peter Ancone for the soon-to-retire and newly laid off employees. For information, contact pete@peterancone.com or call 904-342-8950.

 

 

 

Never Work A Day In Your Life: A Guide to Self Employment

Get Your Copy Here!

Never Work A Day In Your Life! is a concise and easy to read handbook that is an essential guide to anyone considering self employment or starting your own enterprise. The increase in the number of so-called 1099ers and independent contractors, along with the emergence of the GIG economy, have made hiring yourself one of the most significant trends in business. Never Work A Day In Your Life! is both instructional and motivational. Included are guides to the basic organization, marketing, branding, legal and financial steps to starting your own enterprise. The author also addresses both the HOW TO and the WHY TO aspects of striking out on your own, including: • The upsides/downsides of self employment. • Evaluating core skills that will translate into an enterprise of your making. • Choosing the kind of enterprise for you, such as independent contracting versus creating a business with employees. • Choosing a WORK STYLE that fits your LIFE STYLE. • Creating a blueprint for success. • Launching your enterprise. Enterpriser Examples The author has also included the stories of several enterprisers who recount their backstories and share their successes and failures with the reader.

 

Self Employment: The HOW TOs and WHY TOs of Hiring Yourself

Choose something that you love to do and you’ll never have to work a day in your life. This ancient proverb, which has been attributed to Confucius (although this is debated), reverberates into the 22nd century and was the epiphany for my choice to hire myself at age 28. In a 2009 study by the Pew Research Center, it was reported that 

“Self-employed adults are significantly more satisfied with their jobs than other workers. They’re also more likely to work because they want to and not because they need a paycheck.

pastedGraphic.png

The Pew study shows that nearly four-in-ten self-employed workers (39%) say they are “completely satisfied” with their jobs, compared with 28% of all wage or salaried employees.

Here are some of the reasons why the self employed are happy.

 Focus on Opportunity, not Security                                                       ‘Get a good job with good benefits and you’ll have no worries.’ Well, that just ain’t true anymore. Job security went out the window years ago and employee benefits are being trimmed. Want job security? Hire yourself, create an enterprise that is determined (for the most part) by your own wits, skills and determination. For those truly interested in self employment, the first task is to retrain your brain. Forget job security and start thinking about opportunity. Is there a way you can use your skill set to make money? You won’t really be losing all that much as various studies show that the self employed and employed earn about the same annual median income.Where it really varies is in the long term, where the self employed tend to out-earn their employed peers. The difference is in the freedom to capitalize and build on opportunity.

Crafting Your Career, Sculpting Your Life                                                 Start with a vision of your enterprise. Do you envision yourself running a company with employees? Or, perhaps, you like the idea of creating a job for yourself and selling these services on a contract basis?                                                                                                 Your business structure will also be determined by whether you’re selling products or services, or whether your business is labor intensive, requires a physical plant and many other factors. From a review of all these questions  you will ascertain what form your business should take.

Determine What You Want From Your Work                                 Over my many years of speaking in front of businesspeople, and working with smaller businesses and professionals, I have seen how making the decision to be self-employed, for the wrong reason, can come back to haunt you.  There are many ways to be self-employed, successful, and happy. 

Find a work-style that works for you, for example:

• You like structure and organization at work, but you don’t want it to be someone else’s idea of structure. Then choosing to start a traditional business, perhaps with employees, may suit your life style.

• You like to have direct contact with customers/clients, and enjoy doing the work or creating the product with as little outside interference as possible. Then, perhaps you should consider being an independent contractor or running a solo enterprise.

• You’re interested in wealth accumulation and retiring early enough to enjoy it. Then you’ll probably want to focus on an enterprise that offers passive income potential, such as selling products which offer an ongoing return.

For many self-employed people, success is not only measured by money brought in, but by freedom of ideas, of creativity, and of time to live life.

 

Growing and Shaping Your Work Life.