Tired of Conflicting Advice?

Did you go to your CPA and get one answer on the best entity for your new business? Perhaps you spoke to another CPA and received another view of point? Add to the frustration if you visited an attorney and may have received a third approach to your new business.

Imagine what would have happened if you would have visited your financial planner also at the start of your business. Did you go directly to your banker to open a business checking account? I hope not. Perhaps you started with a business license. Did you spend hours searching online for the answers you needed?  What about a merchant account…

No wonder 95% of business owners fail within 5 years. There is no business start up store. It has not been invented (yet). Keep in mind that each professional you go to will have a certain niche of advice. In marketing, the deeper the niche you serve the better, with professionals it works the same. The problem is no can explain to you why your attorney gave you one opinion and your CPA another (other than one was legal advice and one tax advice).

Many times the advice from one will hurt you in another area. The common approach is for your CPA to hear that you are just starting so keep it “simple” just be a sole proprietorship and when you make money incorporate. That of course is directly opposite for your ability to receive any type of business credit, especially with the banks. If you self finance your business as most small business owners do (with personal credit cards) that will hurt your ability to open a business credit card in the name of a corporation or LLC under the tax id number. Yes, it is personally guaranteed but the debt does NOT appear in your personal credit bureaus. But that advice has nothing to do with taxes.

Solution? I would recommend working with someone who has invested a lot of money to break down all these factors into a formula to break down what may be best for you.  Work with these professionals to handle your transition from start up to success. Problem? Most of you still may not recognize good information or systems if they were right in front of you. Remember, if you write the check you get to ask questions. That goes for your doctor, attorney, CPA, financial planners or any other service provider. Most people sort by “authority” and do not ask enough questions.

Once you find someone who is knowledgeable and can help, don’t be cheap when it comes to paying for great information and solutions. Odds are you are only hitting the tip of the iceberg and if someone is strong on the front end they are probably just as strong on the back end. If they are clueless on the front end…time to move on.