What Should You Consider When Starting A Business?

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By Senior Advisor Andrew Schaetzke, CFP®.

For aspiring entrepreneurs, deciding what business you want to start and when you want to start it are great first steps in the entrepreneurial journey. Starting a business can be thrilling, but there is also a lot that you need to do to get it up and running. If you set up good structures and processes when you start your business, this can go a long way in helping the sustainability of your business and making your life easier over time.

To help you figure out what you need to do in order to start your business, we provide the below resource. From this, you may come away with answers and action items for the following:

• How should I fund my business?

• What legal structure should I use for my business?

• What do I need in place in order to have business partners and a business succession plan?

• What do I need to consider from a tax perspective?

• What insurance and other benefits should I have in place?

As always, we are here to help you as you begin your entrepreneurial journey. We can provide resources, experience and strategies that may be valuable to you. Please feel free to reach out to us if you have any questions.

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Important Disclosure Information & Sources:

There is no guarantee investment strategies will be successful. Past performance is no guarantee of future results. Diversification neither assures a profit nor guarantees against a loss in a declining market.

Advisory services are provided by SJS Investment Services, a registered investment advisor with the SEC. Registration does not imply a certain level of skill or training. SJS Investment Services does not provide legal or tax advice. Please consult your legal professional or tax professional for specific advice. This material has been prepared for informational purposes only.

Hyperlinks to third-party information are provided as a convenience and we disclaim any responsibility for information, services or products found on websites or other information linked hereto.

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Suggested Reading

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What Business Should You Start?

By SJS Founder & CEO Scott Savage.

As a business founder, I am often asked by aspiring entrepreneurs, “What business should I start?” If a picture is worth a thousand words, the diagram below should save you from reading too many words from me on this subject. To me, if you can find overlap in these three areas, you just might have a business idea.

Work That Energizes You

If you do what you love and energizes you, you will never work a day in your life. This is the sentiment that many business owners I work with often share. If you “feel the energy” in a certain type of work, step one is complete.

Is There A Market?

Determine if there is a market, meaning customers who value and are willing to pay for the goods or service you provide. The bigger the market, the better. A lot of competition means a big market. Don’t avoid starting a business because there is a lot of competition. Conversely, be wary of starting a business you think has no competition. In my experience, this is a red warning flag.

Can I Earn Money?

There is no shame in wanting to earn as much money as possible doing work that energizes you, and has customers who value what you are doing and who are willing to pay for it. I get up every day with the idea of letting the world know about problems we solve for clients of SJS. Solving problems for others is another way to say you are a business owner.

Good luck on your journey! I wish you the best.

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When Should You Start A Business?

By SJS Founder & CEO Scott Savage.

Based on personal experience and sitting in the front row watching hundreds of business dramas play out before my eyes over the last three and a half decades, I feel comfortable commenting on this subject. One way to define the moment when you make the decision to launch a business:

WHEN THE DISCOMFORT OF YOUR CURRENT SITUATION OUTWEIGHS THE DISCOMFORT OF LAUNCHING YOUR NEW BUSINESS.

Acting, despite your fears, is a common denominator of most business startups.

George Addair, a serial entrepreneur in the late 19th century, captured the essence of my point very succinctly:

“Everything you’ve ever wanted is on the other side of fear.”

— George Addair

Quitting my day job and launching SJS on the same day was a regulatory necessity, but not typical of many of the startups I have seen launched.  Many, if not most, successful entrepreneurs started their businesses at night and on the weekends while keeping their day jobs, often for years.  A famous example is Jeff Bezos, who started Amazon (perhaps you’ve heard of it?) on the side while hanging on to the security of his day job!

THIS IS THE BIG SECRET I HAVE LEARNED ABOUT ENTREPRENEURS: THEY ARE VERY RISK AVERSE.

What? Risk averse?  Most people equate business startup with risk. While that may be true, the business founders I’ve advised over the years are risk averse and want as much control over their life and finances as possible.

FEAR, UNCERTAINTY, AND DOUBT, are emotions that virtually all business founders must overcome and learn to live with. Behavioral Science has even given a name to the feeling of inadequacy these leaders feel: the IMPOSTER SYNDROME – the idea that you’ve only succeeded due to luck, and not because of your hard work.[1]

As SJS celebrates 25 years, I am happy to report what many entrepreneurs often say, “I’ve never worked a day in my life!“ The decision I made 28 years ago was inspired by the discomfort I felt due to the conflicts of interest that I perceived were inherent in the brokerage industry. “Sitting on the same side of the table” with my clients with the duty as a fiduciary to always act in their best interest was, and is, my happy place.

My Dad often preached to me to start a business. He said the worst thing you can do is fail. And there’s nothing illegal or immoral about failing.

Heck, you might even succeed!

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Important Disclosure Information and Sources:

[1]: “Yes, Impostor Syndrome Is Real. Here’s How to Deal With It.“ Abigail Abrams, 20-Jun-2018, time.com.

Hyperlinks to third-party information are provided as a convenience and we disclaim any responsibility for information, services or products found on websites or other information linked hereto.

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