Sponsored by The Shobe Financial Group
Striking a balance between your commitment to loved ones and putting in the hours it takes to pursue a successful career is a challenge many professionals face. Meeting all those needs requires that one be adept juggling an often complicated schedule and, at times, burning the candle at both ends. Some people find opportunity in this challenge, recognizing the need for flexibility in their career and turning that necessity into a company of their own.
A decision to start your own business requires careful consideration and sound advice from people you can trust. The financial side of a business endeavor is only part of the equation. We checked in with someone who knows, Jason Windham, president of The Shobe Financial Group, and he shared some tips to help these nouveau pioneers ask the right questions.
Self-employment and the autonomy that comes with it can bring about new challenges and build self-confidence. Flying solo and being your own boss as an entrepreneur is an incredibly liberating feeling. Click here to learn more and connect with Jason’s team of advisors.
“With a strong plan in place to manage these areas and a solid business proposition, you can continue to build your career while having the flexibility to be available for your family.”
— JASON WINDHAM
CFP®, CLU®, CHFC®, CIMA®, AIF®
PRESIDENT OF THE SHOBE FINANCIAL GROUP
START AT THE BEGINNING
While some of this will depend on the type of product or service you plan to offer, there are six commonalities when starting any new business. To begin, you will want to:
1. DEFINE what you will provide and to whom. Actually write out your business concept, taking into consideration a realistic assessment of the time you can commit to this endeavor.
2. ESTABLISH your financial backing or seed money. A strong banking relationship will be important throughout the life of your business. Consider using borrowed money first and not your savings. It is harder to borrow later if you’ve used up your personal reserves.
3. DETERMINE the business structure that works best for you, whether it be a sole proprietorship, partnership, limited liability company, C corporation, S corporation, or other option.
4. REPLACE your income AND benefits. As a full-time employee, you likely have a compensation package that includes your salary plus a suite of company-provided benefits such as medical insurance, a retirement plan, disability insurance, and so on. What will replace these critical aspects of your financial plan?
4. CONSIDER necessary business insurances (errors & omissions, malpractice, product liability, etc.) and personal insurances (property & casualty, umbrella, etc.), which also means identifying your areas of risk.
5. SET your timeline. You want to outline what you need to do and when in order to get the business launched.