How to Be Unpopular in the Young Entrepreneur World
The Unpopular Young Entrepreneur
It can be challenging for a young entrepreneur to obtain respect. There are several things that young entrepreneurs can do to be taken seriously. Our Sacramento business attorney discusses tactics and strategies that will assist with securing the meeting and subsequently obtaining the listening ear.
No Business Plan
The new trend for startup businesses is to forgo the business plan or to provide a substantially reduced version. A business plan is important on several levels. It is the first chance to demonstrate an entrepreneur should be taken seriously.
- A young entrepreneur who is intending on investing a large amount of money should carefully outline the purpose of the money. Is the investment for product, equipment, materials, furniture?
- A young entrepreneur who intends on signing a lease and paying rent should have details on the neighborhood. Why is this neighborhood good for business? Who is the competition in the neighborhood? Why choose this location?
- A young entrepreneur who wants to invest in marketing the business should consider local newspapers, bench ads, radio ads, magazines, and online ads. Why choose any particular channel for marketing? What are the costs? Will it be a good return on investment?
These are all questions that are addressed in a business plan. A business plan can assist entrepreneurs with organizing their game plan. Whether an entrepreneur is investing their own money or bootstrapped with family/friends’ money, it’s important to invest time into how the money will be used beforehand.
No Cash Flow Statement
Cash flow statements typically piggyback on business plan and are incorporated into a finance section. Should an entrepreneur decide to forgo the business plan, a cash flow statement is still mandatory. A cash flow statement is a financial statement that breaks down the operating, investing and financial activities of the business.
The cash flow statement is broken down by month. It starts with all sources of income and then outlines the monthly expenses. The first month details all of the initial startup costs; i.e., furniture, construction build outs, website, indoor and outdoor signage, utilities, telephone, electrical, plumbing, painting, permits, licensing fees, and incorporation expenses. Each month thereafter will detail the anticipated regular monthly expenses; i.e., advertising expenses, rent, insurance, and payroll.
A brand new business venture will not know the income flow, but the business can make projections and estimates. At a minimum, a cash flow statement will give an entrepreneur an initial breakeven analysis. How much money does this business need to gross to pay for the monthly expenses?
A young entrepreneur without a cash flow statement tells the world they’re lost.
What if the business is virtual or online rather than a brick-and-mortar? There are still costs; i.e., website, developer, general maintenance, advertising, database, and a whole slew of other costs associated with online businesses.
No Business Entity
Our Sacramento business attorney frequently assists young entrepreneurs form business entities. One of the reasons they decide to form a business is because they want to be taken seriously. Some young entrepreneurs have found that, at times, it can be awkward or difficult to sign a new customer under the entrepreneurs’ name or dba. Hence, they look to form a business entity so that customers are signing with a “Corporation” or an “LLC.” For further discussion on the pros and cons of forming a business entity, please read through our business law page.
Sacramento Business Attorney
There is no need to be an unpopular young entrepreneur. By taking the initial steps and investing the time on the front-end, an entrepreneur will be more prepared overall. A more prepared entrepreneur can answer the tough questions and will be more careful with the business cash. An entrepreneur with these traits will be taken seriously in the Sacramento business world.
Trevor Carson is an energetic business attorney. In 2015, he was named by Sacramento Magazine as a top lawyer in Sacramento and was named a Rising Star by Super Lawyers Magazine. Business attorney Trevor Carson focuses on consistency, clarity, precision, and simplicity. Please contact our Sacramento business attorney if you have any questions or want to learn more about options available to young entrepreneurs. Our business lawyers work with young entrepreneurs on forming business entities and setting up corporations and limited liability companies.
By: Trevor Carson Google+
*There are many things that young entrepreneurs can do to be taken seriously; however, this article is only briefly listing a few. The information provided in this post does not constitute legal advice or opinion. The information is for guidance purposes only. Individual situations vary. This blog article may contain language which could be read as a testimonial or endorsement. That testimonial or endorsement does not constitute a guarantee, warranty, or prediction regarding the outcome of your legal matter. This blog article is an Advertisement and or Newsletter. Sacramento’s business attorney Trevor Carson discusses challenges facing young entrepreneurs.