After graduating from college, many clients look forward to starting their own businesses and “being their own boss” rather than entering the work force and beginning a more traditional career. We are often asked to advise these entrepreneurs in order to hopefully increase the odds of success. Argos Family Office is here to assist clients going down this path. Over time a few recurring items have come up during our discussion with prospective entrepreneurs. Here are five quick things to think about when starting a business.
- You are not alone nor are you the first to go down the business creation path. A wonderful book called Roadmap, The Get-it-Together Guide to Figuring out What to do With your Life, was written by the same three individuals that created the show Roadtrip Nation. It will likely be a helpful tool in clarifying your own inner drive and ambition.
- Work experience is critical to success. It is very important to follow your heart and find a career in what you enjoy doing. However, it is also critical to develop skills and work habits of highly successful people. Success doesn’t just happen.
- Become actively engaged in the “business” side of the business. You will need to understand how to manage the professionals around you including your family office, accountants, tax and legal experts. Keep in mind the expenses associated with each of these professionals when preparing budgets and projections for the startup. While few go into business to create great monthly reports, running a business successfully is in part driven by good information on what is happening in the company and being able to react to that information.
- Value your own time. When judging the success of your venture you should examine what you are earning and learning out of the experience. Will you require a salary from the company or will you be satisfied just knowing that the business covers most of its expenses without providing 100% coverage of your living expenses?
- Finally, understand that most startups fail. Even very successful entrepreneurs typically have a list of failures that they learned from in their past. Various studies estimate the 5-year failure rate to be between 50% and 80% of new startups. Launching and running a successful company is hard work and requires passion, an ability to rise above challenges, adequate funding, a great service or product and some luck.
Many clients dream of starting their own business. Argos Family Office has a team of accountants, investment advisors and attorneys that can assist in addressing many of the challenges facing the entrepreneur. While we can’t guarantee success, we can help clarify the issues an entrepreneur should consider when starting a company. Hopefully, by working together, the process will be less challenging, allowing the new business owner to focus on realizing the dream of launching a successful enterprise.