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Helpful tips when starting a new small business

On Behalf of | Aug 30, 2016 | Business Formation & Planning

America was founded in large part on a spirit of entrepreneurship and that spirit remains alive and well today in Florida and around the nation. Every day, someone somewhere has an idea for a new business but sadly not all of those ideas turn out to be successful companies. Following are some tips that people looking to set up new small businesses may find useful from people who have created successful small businesses from scratch themselves.

NerdWallet recommends that despite the pull to use personal money to fund a new company, keeping business and personal finances separate may be better. Always having a cash reserve and closely managing cash flow is also important when getting a new venture off the ground. While funds may be minimal to start with, wise investments in technology, marketing and human capital are also essential as these can often be some of the foundational pillars of a new business.

When it comes to people, entreprenuers should keep their minds open to not just hiring employees but also to utilizing consultants and aligning themselves with experienced mentors who are not afraid to give clear and direct advice when needed.

Finally, Bankrate indicates that company founders should take seriously the decision about which type of operational structure to settle on. There are unique qualities and advantages to different types including C corporations, S corporations, LLCs, partnerships and sole proprietorships. Some of the benefits are tax-related while others are more about control and decision making. All of these things should be evaluated before a final decision is made.