Main Street Wednesday — New Year’s Resolutions for the Start-Up Entrepreneur

January 7, 2015

By Bob Coleman
Editor, Main Street Wednesday

Last week I offered my top five New Year’s resolutions Main Street should embrace.

Then, I received the South Florida SBA office’s monthly newsletter. Their list of 14 resolutions is great advice for the entrepreneur who wishes to join Main Street.

1) Do not go it alone. Seek counsel from other unbiased professionals: SCORE, SBDC and other community business.
2) Do set-up separate bank accounts for your personal and business funds.
3) Do not ignore the importance of having a good credit score. Use 680 as a benchmark.
4) Do not commence business operations until all the needed funds are available.
5) Do not seek capital from a lender or an investor until you have the prepared required documents needed to make a decision.
6) Do study the variables that relate to seasonality of your business when preparing cash flow projections.
7) Do not use short term debt for the purchase of equipment that has a long term life.
8) Do sign a lease (or any contract) only after you prepared a start-up budget, cash flow projections, and the required capital is available.
9) Do not sign a partnership or a joint venture agreement that does not have a buyout provision.
10) Do seek an unbiased professional review of the terms of the agreement before signing a lease.
11) Do not underestimate your operating expenses, or overestimate your income.
12) Do conduct background and reference checks before hiring new employees.
13) Do not ignore the importance of including a dollar value for the services you personally provide to the venture.
14) Do understand insurance requirements and the protections they offer for your new business.

Source: Marjorie Weber, Finance Consultant at Florida SBDC at Florida International University College of Business — SBA South Florida Small Business News, January 2015