For many people, opening a small business makes them feel like they can do anything, even skydive. But if you’ve never skydived before, you wouldn’t undertake this without an instructor, would you? The same is true of owning a small business. While you may be really good in your field, you may not have all the skills needed to handle accounting issues, legal matters or tax issues. And you should never assume that you do.
When building your small business, reach out to these five key individuals to increase your efficiency and help you reach your business goals.
Attorney—One of the biggest mistakes small business owners make is believing that attorneys are an unnecessary expense. Whether or not you hire an attorney on retainer is up to you and depends on the type of business you run. Having an attorney who is readily available and knows who you are is essential for a small business. Attorneys help you: (a) minimize legal and financial risks with appropriate counseling, (b) keep your business legally protected, (c) draft, review and negotiate contracts with customers, vendors, etc. on your behalf, and (d) prepare you and fight your case in the event of a law suit, among other things.
Business Accountant—Today, any small business owner, who can use QuickBooks may think they have the skills to be their own business accountant. When reaching out to an accountant for guidance, consultation or assistance, you should always: (a) check their credentials, for instance, if you don’t see the letters CPA (Certified Public Accountant) behind their name, be advised you may wish to continue looking for the right person, and (b) find out if they are a business accountant or personal accountant—business accounting needs are different from personal accounting needs. As a small business owner, you should choose an accountant with a variety of experience in business accounting issues. If you can’t hire a business accountant, select a well-trained bookkeeper with at least 5 years of experience in bookkeeping for your field of work, but always keep an accountant in your list of friends and contacts, just in case.
Banker—A banker is much more than a company or a checking teller. A banker is a specialist—such as a loan specialist or small business banking specialist—who helps you sort out deposits, withdrawals, errors, savings, small business loans, debt, credit, payroll (not the same as having a payroll company) and many other important financial issues you’ll encounter as a small business owner.
Insurance Agent—You purchase medical, dental, auto and homeowner’s insurance to protect your assets, your investments and your family. Your business in an investment as well—one that affects all of your other investments and should be protected. The term “business insurance” covers a wide range of insurance including health insurance, Worker’s Compensation, property insurance and general liability insurance. Finding a knowledgeable business insurance agent can save your business time and money.
Tax Specialist—If you’ve already reached out to an accountant, you may feel that reaching out to a tax specialist is redundant. However, while many accountants understand how to prepare taxes, a tax specialist will help you understand the tax benefits and liabilities associated with the different levels and types of organizations and of legal entity formations, and help you to make the best decisions for your business.
Remember, if you’re starting a small business, now is the time to network with other professionals, reach out for help to the professionals mentioned above, for help to minimize the impact of business risks and improve your business successes.
