All aspiring entrepreneurs in New York must have a business plan in mind when beginning a new startup. This can apply with a single business or for those with the potential for multiple operations in the future. Most consultants will advise clients that a good business plan will stress company viability through the initial five years, as that is typically the amount of time new companies need to grow into a successful business. And, there are two basic issues that must be decided from the very beginning.
Financing
While some entrepreneurs have the capital to begin their operation at onset, the truth is that solid growth will almost always require a credit line of some type. Convincing investors that the project is a viable opportunity involves having a comprehensive business planning presentation that focuses on an achievable company goal, including sales forecasts and company mission.
Business structure
Another serious decision to consider is the type of business formation that will work best for tax purposes. While some entities with significant financial resources may want to incorporate, smaller businesses may want to consider a limited liability company or limited liability partnership when in the business planning phase. Small individual business owners may actually want a sole proprietorship arrangement. Each business is unique in some aspect, and finding the right structure is always important even though the business entity type could change with company growth.
The primary rule in any industry is that business managers who fail to plan are planning to fail, and it is always vital to perform the due diligence in forming any business from the very opening analysis study. And this includes addressing all legalities necessary to begin with and avoiding potential problems that could arise in the future.