We’ve all heard that there was a surge in new business creation that coincided with the onset of the pandemic. In fact, 2021, was the highest on record.
Yet, there are potential entrepreneurs who remain on the sidelines because of the risk involved in launching a business. Below we explore five essential tips for budding entrepreneurs who want to build a business and safeguard their family’s future.
Tip One: Separate yourself from your business
One of the biggest concerns that potential founders have is exposure of their personal assets. Especially if something goes wrong with their new business.
Business entity. Setting up an LLC will help separate you from your business. At Opolis, we help new entrepreneurs set up LLCs with an ‘S’ Corp designation. This particular entity has several tax advantages for solo entrepreneurs.
Business account. Keep your personal finances separate from your business finances. Not only can you keep track of your business expenses, but you also protect your personal assets in the case of any business financial trouble.
Tip Two: Purchase adequate insurance coverage
We strongly encourage new entrepreneurs to have adequate insurance coverage. This can include liability insurance, business interruption insurance, life insurance, and disability insurance. Having enough coverage can help protect your family in case something unexpected happens.
Tip Three: Plan for the future
We know having a plan reduces anxiety, so create a solid plan that gives you peace of mind. Having a clear business succession plan and a comprehensive estate plan that takes care of your family will help you sleep at night.
Tip Four: Put together a health plan
One of the biggest deterrents for new entrepreneurs making the leap from working a W2 job is affordable health care. There are several options ranging from state exchanges to engaging an insurance broker. However, many of these become cost-prohibitive if you need insurance to cover your family as well. Opolis offers premium medical, dental, and vision plans for solo entrepreneurs and their families, that don’t break the bank. HSAs and FSAs are also vital when faced with covering unforeseen health costs. Because of group purchasing power, new entrepreneurs and founders can access these types of savings accounts through Opolis.
Tip Five: Prioritize work-life balance
It’s important to prioritize work-life balance as an entrepreneur. This means setting boundaries between your work and personal life and taking breaks when necessary. Also, entrepreneurs benefit by tapping into a network of friends and family who can provide emotional support during challenging times.