The following are Risks you should understand when deciding to start a business or franchise.
Starting a business or purchasing a franchise is likely the 1st or 2nd largest financial decision you will make. It is important that you and your spouse or partner understand what is being done. I recommend you always include spouse’s and partners in every conversation.
We live in a litigious society, protect yourself and your families resources. I recommend that you never own a business in your personal name. It only costs about $250 to form an business entity like a limited liability company (LLC) or a corporation (S or C) and protect your assets. Don’t use general partnerships outside of an LLC.
Don’t trust your future to a young person who wants a job more that protect your investment. Get involved and learn your business.
Treat your personal life as your personal life and your business life as your business life. Never mix personal and business funds in the same bank account. Inflation and taxes affect your true profit. Make sure you work closely with your CPA to ensure your revenue is actually making your income be above these risks.
There are many risks in owning a business. Make sure you have a strategy to insure, avoid, or mitigate all known risks. Seek the advice of licensed professionals like legal, accounting, and financial. Make sure your advisors have REAL experience in the business you are seeking advice.