Usually I am the small business, home-based business, start-up entrepreneur cheerleader. But today I went to expose a lie you might have heard. Here’s the truth: Not everybody should be in business.
Now, let me first be really clear. I’m not being elitist. I’m being practical. Everybody COULD have a successful business that they start on a shoestring from their own home. But not everybody will.
You probably already know about the need for marketing to key markets, making sales, collecting money, fulfilling on promises and delivering consistent fantastic results for your clients. And, after all, isn’t that what it takes to have a business?
Well, if you’re really lucky, live in a cave and stay off the Internet and away from everyone else, you may just make it.
But if you want to have a real life and interact with humans, you’re going to also need to protect your business and your other assets as your wealth builds. Otherwise, someone – state tax authorities, the IRS or some nut job – is going to try to take away what you have.
This is the part that not everybody gets about business.
You should NOT be in business, unless you are prepared to commit, right here and now to:
- Set up a bookkeeping system that gives you accurate and timely financial statements. You can do it yourself, but only if you’re prepared to be accurate and timely. (Timely means that you should be able to have a financial statement within 30 days of a month end. )
- Operate within a business structure. Don’t do joint ventures or sole ventures in your own name. Hire a professional and get it set up right.
- Maintain your business structure. It doesn’t mean anything to have a business structure if you aren’t prepared to have separate business accounts, separate accounting and separate reporting for each business and of course, never ever mixed up with your own personal funds.
In the beginning, you’ll probably be watching your pennies, but that doesn’t mean you get to take shortcuts on these vital three parts. Miss just one part – and you could lose everything.