The Risk of Starting A Business
Business Lawyer Rockville, MD
Starting a small business can seem like a leap of faith. For someone thinking of starting their own business, there will be many considerations that need to be made. Starting a small business can be terrifying. Not only can there be significant financial commitments that come with owning a business, starting a business comes with some level of risk.
The numbers don’t lie, according to the Bureau of Labor Statistics, only about 50% of all businesses reach the five year mark. Although some businesses are riskier than others, there are signs that can indicate a business is in trouble. However, by carefully putting together a business plan with a business attorney, you can help to have a clear plan for how you will start your business and manage challenges faced by many businesses today.
Risky Businesses and Signs of Trouble
Although it can be difficult to clearly distinguish failure rates amongst industries, some business areas or industries can be riskier than others. Some risky industries include:
- Transportation Industries
- Retail Clothing Industry
- Restaurant Industry
Despite this, it’s important to keep in mind that with proper planning and business management, some of these businesses may have the ability to thrive for many years. However, there are key signs that may indicate your business may be in trouble:
- Inability to pay bills
- Unable to provide employees with raises
- High employee turnover
- Unclear business goals
- Employee paychecks are bouncing
- Unable to turn a profit
- You are unable to obtain additional funding
Business planning can be incredibly beneficial for prospective entrepreneurs. Contact a business attorney to help you in planning and safeguarding your business to help mitigate risk.
The reasons for developing a business plan can seem obvious. However, it’s surprising how many may actually put off ever creating one. A proper business plan help to ensure that you have a clear plan for how you will conduct business. Additionally, a business plan can also help when managing tensions and complexities that a business may face. Business plans help pave the way for the future ahead, and may include the following key elements:
- Executive Summary: A brief summary that clear outlines the plan you have for your business.
- Description of Your Business: This will incorporate all key aspects of your business. The description will include the type of business you will be forming, your mission statement and successful components to your business.
- Services Offerings: Identifies the goods or services you will be selling
- Market Analysis/Strategy: Outlines market competition, information regarding your target market and your strategy for drawing a customer base.
- Management: Includes the qualifications of those on your team and discusses how you will operate your business.
- Financial Requirements and Projections: Should include your financial needs by clearly outlining the cost of operations in addition to your financial projections for the business.
Although a business plan can be daunting, putting one in place doesn’t have to be. A business attorney can not only help in walking you through the process, but they can also ensure that nothing is left out.
Are you considering starting a business? Perhaps you are concerned your business may be in serious trouble? A business lawyer Rockville, MD trusts can help when navigating the complications and challenges faced by small business owners.
Contact The Law Office of Daniel J. Wright for their insight into business law and the risks of starting a business.