Business Formation: Why formalize…
- February 1, 2016
- 2 Comments
There is nothing more dynamic than a changed mind. You can change every aspect of your life: your place of work, your mode of transportation, your circle of friends, your heart, but until you change your mind, you have changed nothing. Maximize your voice…elevate your mind.
Often times entrepreneurship begins with a hobby, passion, or desire to fill a need. Whatever the driving force, it is powerful enough that the resulting good or service must be shared with the public. Many people have asked the question “Why choose a formal business structure when I’m doing fine without it?” Our response to that question is typically some form of the same notion. If you have enough faith in yourself and your product or service that you’ve invested your time, efforts, and finances, and you chose to share that product or service with the world, why wouldn’t you want to take advantage of the benefits available to you? Why wouldn’t you protect the voice that you’ve been bold enough to maximize?
Business formation, though it requires more of your time, efforts, and finances, benefits you in several ways. Once such benefit is protection from personal liability. You may have created the most effective and innovative method of teaching; transforming the world of education and fortifying the future that is embedded in our youth. What if you offered that method to the public, guaranteeing the incredible results that you have seen time and time again, and someone files a lawsuit against you, claiming that your method failed to work for their student? Whether or not the complaint has merit, you risk losing your personal assets (your monies, your vehicle, your home, etc.) because you chose not to formalize your business and limit your personal liability. Even if you prevail, the risk of losing your personal assets places unnecessary stresses on you that can be greatly reduced by opting for formation.
Don’t risk your potential for organizational success by holding on to the mindset that you’ll be fine. A hobby, passion, or desire to fill a need can easily turn into a nightmare if you don’t change your mind. Elevate your mind…Maximize Your Voice!