Choose Good Business Advisors
I am sorry to disappoint any readers that may expect this is the section where we recommend that you hire Cafemakers to help you with all of your needs - it is not and we are not. This is, however, the section in which we strongly recommend that you seek outside advice in any area that may not be your field of expertise, including but not limited to: business management, human resources & training, negotiation, insurance, real estate, accounting, interior design and legal matters, to name a few in no particular order of priority.
In short, there is someone out there that has learned from the mistake you are about to make - taking advantage of that information can mean the difference between your success and a costly failure. Although the consequences are less extreme in the case of a business advisor, interior designer or trainer versus, for example, your attorney, the independent ability of an outside professional to remove themselves from the emotional haze of a complicated situation and help you take sound action in your best interest, which is generally well worth the investment.
Even if training or accounting happens to be the specialty of your current profession, it can certainly not hurt to learn from and improve upon the experiences of others in that field as it pertains to this new venture. Ironically, people tend to seek outside counsel most often in those areas in which they are already familiar and have come to respect the complexity of the discipline - the same attention should be paid to the areas you are unfamiliar; never assume that an unfamiliar topic lacks complexity as it is usually the extreme opposite.
Be certain to place emphasis on the expert guidance for:
- Legal advice: and I cannot stress this matter too greatly, engage a qualified and licensed attorney to assist you in all matters relating to the formation of your business, developing and protecting your brand, major commitments, such as, leasing property or equipment and in any conflict that creates a potential liability for you and your business interests. Never depend on your “best guess” or the collaborative responses of coffee shop owners to a free public bulletin board service regarding legal issues. Failure to correctly prepare or defend yourself in many aspects of business represent a credible threat to your livelihood - choose your attorney or attorneys with care; ideally ones focused on the area of practice directly related to your immediate concern. For example, you will likely find that you will need a different attorney for matters of intellectual property, such as, applying for or defending a trademark than you would for the organization of your company structure or defense of a slip and fall lawsuit.
- Accounting: You need only to look as far as recent headlines on the collapse of Enron, MCI WorldCom and others to understand the importance that the role of accounting plays in modern business. The recording and interpretation of your accounting data by Generally Accepted Accounting Principals (GAAP) is not only a good idea to understand the true state of your financial well being, but it will also help you to avoid the sort of accounting irregularities that may put you in jail.
Fun Accounting Fact: Did you know that despite years of notoriety, it was a conviction on the criminal charge of tax evasion that eventually put infamous mobster Al Capone in Federal prison? True. A skilled accountant can advise you on the best way to legally make the best use of your income and expenses, take advantage of tax breaks and incentives, as well as plan strategies for long term financial goals. Bookkeeping may not seem to be a very thrilling task and is considered by many to be an afterthought or necessary evil of doing business, but never forget: in business, the way you report your financial information is nearly as important as the financial information itself.
- Insurance: Work with your business insurance advisor to determine what types of coverage are applicable to you and your business. Just like you, we are not fond of the underlying argument “I’ll bet you $500 that our business burns to the ground this year,” but nevertheless, in the event that the unthinkable happens, that policy will be the best investment that you ever make, with premiums amounting a small fraction of the cost of recovery from that disaster - just think, you could be one of the “lucky ones” that gets most of their money back and has an opportunity to start again. Beyond physical damage to property, be ever mindful of the potential liability that exists in this litigious American society - like it or not, simply letting your customers in the front door may make you responsible for their negligent and irresponsible behavior (not to mention that of your employees). As the owner or a partner in your business, also do not forget to protect yourself, your partners or investors and your family. What would happen to each of you in the event that you are permanently disabled or even killed? A wide variety of insurance products exist today that are designed to protect all of the above so that an unfortunate event for you or your company does not become the final event.
Despite the best assurances and intentions of your friends, neighbors and customers, they cannot protect you as your attorney, accountant and insurance agent can in times of dire need. It does not go far enough to say that your paid advisors are some of your best allies in business; they are your ONLY allies in business.