Strengthen Business Fundamentals

Things to know about business fundamentals

Strengthening the fundamentals of your business is essential for anyone looking to manage or grow a business. Here are some key areas that must be addressed:

1. Legal Structure: 

Ensuring the appropriate legal structure for your business is vital. Common options include sole proprietorship, partnership, limited liability company (LLC), and corporation. Each structure has its own advantages and disadvantages in terms of liability, taxation, and management.

2. Ownership Types: 

Determine the best type of ownership you want for your business. You can be a sole proprietor, where you have full control and responsibility, or a partnership, where you share ownership and decision-making with one or more partners. Alternatively, you can have shareholders if you opt for a corporation.

3. Capital Investment: 

Understand how much capital you need to start or grow your business. Determine if you will self-fund, seek loans from financial institutions, or attract investors. Each option has implications for ownership, control, and financial obligations.

4. Equity vs. Debt: 

Understand the trade-off between equity and debt financing. Equity financing involves selling ownership shares to investors in exchange for capital, while debt financing involves borrowing money that must be repaid with interest. Evaluate the pros and cons of each method and its impact on your ownership.

5. Rights and Responsibilities: 

Familiarize yourself with the rights and responsibilities associated with business ownership. Understand your obligations to stakeholders, including employees, customers, suppliers, and the government. Be aware of legal requirements, such as filing taxes, maintaining records, and complying with regulations.

6. Decision-Making Authority: 

Determine how decision-making authority will be distributed among owners. This may depend on the legal structure and ownership agreements. Clarify who has the power to make strategic, operational, and financial decisions, and establish mechanisms for resolving disputes and conflicts.

7. Profit and Loss Distribution: 

Decide how profits and losses will be distributed among owners. This may vary depending on the ownership structure and agreements. Consider factors such as capital contributions, time commitment, and risk taken by each owner.

8. Exit Strategy: 

Plan for the future by developing an exit strategy. Determine how and when you may want to exit the business, whether through selling your ownership stake, passing it on to family members, or going public. Having a clear exit strategy can help you make informed decisions throughout your ownership journey.

Remember, business ownership involves legal, financial, and operational considerations. We’ll help you partner with attorneys and accountants to ensure you a great team of proffesionals by your side. 

Real Testimonials

"Clay’s expertise in systems and mapping out our goals made a huge impact on how I make decisions."

“Clay and his team have helped me tremendously grow my business! The thoughtfulness, advice, and learning from their own failures is so valuable. Clay’s expertise in systems, and mapping out our goals made a huge impact on how I make decisions. Let’s be honest, working “on” your business instead of “in” your business takes a lot of sacrifice, but man is it worth it!”

-Casy Bryant
Benchmark Home Loans, Chattanooga, Tn.

Ready to make a change?

“If you keep doin’ what you’re doin’, you’re gonna keep gettin’ what you’re gettin’.” 

If you don’t like what’s happening around you, make a change. Not everyone can do that. Change can be scary. But that’s where a coach like Clay can be so important. Someone to come along beside you who’s been through it all before and wants to see you and your business succeed.

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