3 BFFs for New Entrepreneurs
In our personal lives, we have BFFs. With them, there’s trust, the “I got your back” kind. But one normally gets to that stage with someone over time and/or through experience together. In business, new entrepreneurs don’t have that luxury. You actually have to get 3 BFFs right away, at the almost onslaught of your business. These besties are your accountant, lawyer and bookkeeper.
These 3 critical persons don’t necessarily make your business, but at the wrong, inopportune time or transaction, your business can break without them. Here’s how to think about it all:
- Accountant. All entrepreneurs go into business to make money! And keep it! Well, to keep the most in the bank, you need your accountant to help you understand how to manage your books and most importantly, those dreaded taxes. I teach many that the laws of this country are really more advantageous for the business owner (and not the W2 worker) because of tax benefits you can receive from your hard work as a business owner. Newby entrepreneurs need a knowledgeable accountant to advise you on your business operations + every transaction with a “tax minimus” in mind. Even as you form your business, depending on what you do for a living, certain legal entity types can be more conducive for better tax benefits + credits than others. Do you know which that is for you? Well, all these considerations (and more) are how a smart accountant can make sure you make the right decisions as a business owner.
- Lawyer. Yup, our society is litigious! Anything you say or do can be held against you these days. To a small business, lawsuits can be financially deathly. But it’s not always the egregious or serious offenses that you should consider in order to have a lawyer. Day to day activities like vendors who do/don’t pay, terminated employees or how you run your operations may all have legal implications if not managed properly. With the web and using your network, business owners are smarter and can handle most situations themselves however there can be issues that are too complex and need representation. So, take an ounce of prevention and have a good lawyer in your network or associated to your company to handle situations bigger than your own skills or resources can. As well, preemptively consider a consultation (or 2) with a lawyer who can give you guidance or legal review on matters that can help you prevent situations in the first place.
- Bookkeeper. Your time is valuable! Most likely, your bread + butter for the business probably makes more per hour than the cost of a bookkeeper organizing your receipts from your daily operations. So consider prioritizing your time and outsourcing to a solid bookkeeper. Bookkeeping is a very underestimated and undervalued function. New business owners can take a while to establish internal systems for their business and make them efficient. Some reports even show that new entrepreneurs can spend up to 1/3rd of their time trying to manage their books. Get that bookkeeper to comb through all these details, log your receipts and reconcile your bank accounts. Bookkeepers really address time, which most entrepreneurs don’t have, especially when they first open up shop.
Entrepreneurs are not successful on their own. Being surrounded by the right team helps you be in business and stay there successfully. These 3 service providers are essentials for the small business. Don’t get caught out without them. Take the time to find these trusted professionals, who will be your BBB – best buddies in business!