Putting together a well written business plan is the one thing that will get your business noticed over others, especially if you need investors. Your business plan is also the framework you’ll follow to create success. It describes analysis of the financial data necessary to prove that your business can and will be profitable.
Your business plan should be able to…
… Attract investors. This is done by designing your business plan to persuade those who may be skeptical of your potential success. This objective may be achieved as long as your business plan has the following components:
- a persuasive introduction that specifically identifies a need for funding
- a mission statement describing the purpose and objectives of your business
- a detailed description of how your business will actually work (including, but not limited to, your product/service type, whether or not you’ll have employees, and how distribution of goods will be handled)
- a description of your marketing strategy
… Forecast the finances of your business. This can be achieved as long as your business plan includes the following:
- a profit and loss forecast
- a break-even analysis
- a cash flow projection
- a start-up cost estimate
At the end of the day, you want your business plan to be sufficiently detailed and accurate to convince investors (or yourself) that you own a viable business idea. To give your business it’s best chance for success, contact an experienced business lawyer in Las Vegas at 702.451.7077 today.
Once you decide that you want to pursue a particular business idea, writing a business plan should be your first step. This document will provide you a framework through which you can determine if your business will be viable and successful.
You need a business plan if…
… You want to start a business with the best chances for success.
… You want to accurately determine if your business idea will be able to be profitable.
… You want to know how much money you’ll need from investors to cover start-up costs.
… You want to hit the ground running with a well thought out marketing strategy already drafted and researched.
Perhaps the most important reason for a business plan is because you’ll never be able to land investors without it. Potential investors want to see that their money will not be squandered frivolously. They want to know that the money they invest in your business will be put to good use and ultimately earn a decent return on investment. The business plan demonstrates for potential investors whether a business will likely succeed before any money ever changes hands.
For more information about building a business and the proper entity to use to conduct it, contact a business lawyer at 702. 451.7077 today.
When you think about starting a business, one of your first thoughts should be whether or not your business will be successful and profitable. You may be able to find this out before you ever start by preparing a break-even analysis.
A break-even analysis will help you to understand how much revenue you need to bring to the table in order to make any profit. Knowing how much you have to make in sales before you break even is critical to the ultimate success of any business. You want to know that you can easily cover your expenses and provide for yourself/family.
Once you prepare a break-even analysis, you will be left with one of two possibilities:
- Your analysis shows that your break-even point is higher than you expected. You may either forgo the idea altogether or adjust your plan to lower costs wherever possible.
- Your analysis shows that you don’t need too much in sales revenue to break even and that you can proceed with your business plan. Next, you’ll want to make more calculations to ensure your business idea is financially sound before you start investing your hard earned cash. It’s a good idea to prepare a profit-and-loss forecast, a cash flow projection, and a start-up cost estimate.
Once you have your break even analysis, you are well on your way to developing a sound business plan. For more information about building a business, contact a business lawyer at 702.451.7077 today.
There comes a time in many people’s lives that the idea of starting a business becomes very tempting. You’ve now been thinking about it for a while and you even believe you have a pretty good idea. However, you want to make sure that your business idea is one that truly works for you and your lifestyle.
What to Do
- Know the business inside and out. This is easier when you choose to start a business in a field about which you’re passionate or have a lot of experience. Running a business is hard enough, so give yourself an edge with extensive knowledge of the industry you choose.
- Research the startup costs, overhead, and expenses you can anticipate dealing with as a business owner in that industry.
- Try out the business, even if that means working for free. You may find out that you truly have no interest maintaining a business in the industry you’ve chosen.
What NOT to Do
Naturally, there are a number of different things you absolutely should avoid when considering whether your business idea is right for you. Here’s just a few:
- Don’t pick a business venture just because it seems to be popular or promises instant success. Those empty promises rarely work out in your favor.
- Don’t borrow money just because you can. Make sure you have a thought out plan with the help of a business lawyer in your area. You can call 702.451.7077 to schedule a consultation and get your business idea started on the right track.
Choosing a name is possibly the most important part of establishing your business. The name is your brand, how you’ll be known across the internet and how customers will refer to you. Take some time coming up with a good one.
Tips to Choosing the Perfect Business Name
#1 | Be Original
The more original, the better. You don’t want your business to be confused with another business because you can lose potential customers. Also, there are numerous copyright and trademarking laws in play with business names that are already established. So, choose an original name to avoid starting your business off on the wrong foot.
#2 | Research
Once you settle on a name, go to the U.S. Patent & Trademark Office’s database. There, you can look for similar business names, misspellings, and more that can interfere with the success of your business in the long run.
Then, go to your Secretary of State’s website to make sure your business name is completely original. This step is only necessary if you’re going to be doing business as a corporation, LLC, or limited partnership.
As a general rule of thumb, it’s also a good idea to see if your business name is available as a web domain. If it’s not, you may want to reconsider the name you’ve chosen. In this technological age, a business must have a web domain. If your business name is being used by a different website, again you’re setting yourself up for confusion and profit losses in the future.
#3 | Seek Help
Reach out to an experienced business lawyer to make sure you are taking the right steps to ensure your business’s long-term success. You can call 702.451.7077 to schedule a consultation today.
Depending on who you ask, the hardest part about building a business is deciding which business entity is going to best serve your needs. You want to make sure that you have the room to grow and expand. You also want to make sure that you’re protected from liability.
Unfortunately, there are so many different ways you can build the infrastructure for growth and protection, it can make your head spin. So, check out this resource to learn about the different business entities available to you.
The main options you can choose from include but are not limited to:
- Sole Proprietorships
- Limited Liability Companies (LLC)
You’ll learn how each of the business entities work (on a basic level) and how each can be a benefit or a detriment to your business plan.
Once you think you have an idea of the direction you’d like your business formation to take, call Marc Simon Law at 702.451.7077 to schedule a consultation. An experienced business lawyer will help you get your business off on the right foot for its ultimate success.
Now that you’ve decided to open a business, you have to determine the type of business formation that will best suit your needs and protect your assets. Here is a quick guide to give you a basic understanding of the most common types of business formations.
This is a type of business structure in which there is one person who owns the business under their name. You only need to register with the state if you are going to do business under a name other than your own.
Since a sole proprietorship technically isn’t a legal entity, it doesn’t offer much in the name of legal protection. Income and expenses in this type of business formation are reported on Schedule C of your personal income tax return. Professionals, consultants, and independent contractors are usually sole proprietorships.
There are two main types of partnerships: general and limited. General partnerships are best for joint business ventures where profits, liability, and managerial responsibilities are shared amongst the partners.
A limited partnership is more common because it protects the partners from the liability of other partners. In this type of business formation, each partner makes an investment and signs a written agreement that communicates the amount of shares, responsibility, and liability each partner will have.
Limited Liability Company (LLC)
This is a special type of business formation that combines the benefits of partnerships and corporations. It offers members protection against personal liability like a corporation does, without corporate taxes.
Naturally, there’s a lot more information required to fully understand the numerous types of business formations out there. To be sure that you have the protection you need to conduct business successfully, contact a business lawyer at 702.451.7077 today.
When the “American Dream” first came about, it included owning a reliable car, owning a home, and supporting a family with steady employment. Nowadays, millions of Americans believe that owning a business is a more personally fulfilling way to achieve that dream.
Unfortunately, building a business requires more than just a good idea and relentless determination. In order for a business to be successful, it needs to be structured in a way that allows plenty of room for growth while also protecting all parties involved.
“Modern day entities afford both the flexibility and desired protection from liability – provided they are lawfully organized and properly operated.” ~MarcSimonLaw.com
This protective business structuring requires an extensive understanding of business law and the many complicated business formations. You can try to do this on your own, however, doing so often results in costly errors. Depending on the size of the error, you may jeopardize not only your business, but your personal assets and the security of your family.
Of course, that doesn’t mean your dream can’t become your reality. With the help of an experienced business law professional, you can have your business up and running with little-to-no headache on your end.
First, find out why getting help is the best thing you can do for your business here. Then, call Marc Simon Law at 702.451.7077 to schedule an appointment. With the right business law professional in your corner, you’ll be in business in no time.
If you would like to form multiple companies, have the limited liability protection of a corporation, yet pay only one filing fee per year to the Nevada Secretary of State, consider the formation of a “series” LLC.
Many states, including Nevada, in an attempt to encourage the formation of business entities, have adopted legislation authorizing series LLC’s. Simply stated, all you need to do is file a form set of Articles of Organization with the Nevada Secretary of State and check the box upon such form allowing the LLC to have series. Thereafter, as long as each series established thereunder maintains a separate legal existence (an Operating Agreement for each such series is highly recommended), i.e., has its own assets, liabilities, owners (members) and separate financial records, only the master LLC need file a renewal of its Annual List and State Business License. Nothing need be filed or paid by any of the LLC’s series entities.
Call me regarding the formation of LLC’s (series or otherwise) and to prepare the documentation necessary to not only conduct business, but also insulate yourself from personal liability.
Typically, when a corporation is initially organized, it is common to elect Directors and Officers as well as issue shares of stock to those persons actually funding, and thus owning, the business. However, what is all too often not addressed is the preparation of a shareholder buy – sell agreement.
Such an agreement (which is totally distinct from corporate bylaws) should be prepared well prior to it even being needed and should address, at a minimum, the following issues:
- What stock transfers a shareholder is permitted to make (for example, to the shareholder’s living trust) before having to first offer such shares to the other shareholders?
- Before the sale of one’s shares to an outside third party, are there rights of first refusal that must first be afforded to either the other shareholders or the corporation itself?
- What happens to the shares of a shareholder who divorces? Must the non-shareholder spouse give up any marital rights in the stock, and if so, upon what terms?
- What if a shareholder dies? Must his or her estate relinquish the shares, and if so, upon what terms?
- What happens if a shareholder becomes mentally or physically disabled or incapacitated? Is the corporation required to carry disability or life insurance for the benefit of a shareholder, and if so, can any part of such insurance be used by the corporation to acquire the shares of the disabled or deceased stockholder?
- How is the purchase price to be determined for one’s shares? Further, must the price be paid in full or possibly with just a minimum down payment and installments over time?
- What if a shareholder violates its agreements under the buy – sell agreement? What are the rights and remedies of the company and/or the other shareholders?
These are only some of the many questions and problems that may result and can be resolved with a well-drafted shareholder buy – sell agreement. Please call us to discuss these matters further.