Planning your business formation can make all the difference between success and failure. New businesses and the entrepreneurs who create them are “the engines of job creation and eventual economic recovery,” according to a new study by the Kauffman Foundation. The study looked at census data from 1980 to 2015, and concluded that nearly all net job creation across the country occurred in businesses that were less than five years old.
Even so, only about two-thirds of new small businesses survive two years and only half will survive five or more years, according to the Small Business Administration. “This is why planning your business formation can make all the difference,” says our founder Dan Watkins.
A big part of success in business is having the right business formation and a good business plan. San Diego business formation and planning attorneys know that the wrong plan, or no plan, usually sends new businesses out of business.
One of the top reasons that new businesses fail is that the founders do not have the right attitude and/or resources. They need to be positive and ready to embrace the risks involved in starting a new venture. New business owners must be prepared for success as much as failure. Continuing success will often require new infusions of capital from investors or joint ventures with other companies.
Successful entrepreneurs say starting a new business requires avoiding distractions like job offers, and staying with the business and not throwing in the towel when bills pile up or customers are hard to come by.
Alison Howland started her own consulting business. “I made a conscious decision to only surround myself with people that were going to contribute and be positive in my life,” Howland said. “That’s why I was able to persevere, get through the (challenging pandemic) economy and get new clients.”
Consulting with the Watkins Firm when planning your business formation can make all the difference to position your new company for success. We invite you to review the strong recommendations of our clients and contact the Watkins Firm or call 858-535-1511 for a complimentary consultation today.
