Starting a new business can take a significant amount of time. This is why many California entrepreneurs continue to work a full-time job during business formation and planning. Having a steady income can provide a certain amount of security, but it may also mean getting a business off the ground could take longer. For many people, this is an acceptable trade off.
Forming a business may be as simple as filing the appropriate paperwork, but deciding what kind of business to form -- such as a sole proprietorship, LLC or corporation -- could take a considerable amount of research. A steady income could prevent making a rushed decision that could end up requiring additional time and money in the future to change. Knowing that the bills will continue to get paid can also allow an individual the opportunity to develop a business plan that includes consideration for as many issues as possible.
A business plan is essential to the success of any business. Without clear-cut goals and an idea of how to achieve them, a new business could fail. Even a short-term plan that includes a budget, income projections and marketing strategies is better than not having a plan at all. A long-term plan can be developed based on how accurate the shorter plan turned out to be.
For cautious entrepreneurs in California, business formation and planning can take a significant amount of time. Once some preliminary decisions are made, someone versed in business law can be engaged to help put those decisions in writing and provide feedback regarding the company's proposed structure. Additional issues could be discovered that a new business owner may not have considered previously. Choosing not to rush through this process could be the difference between success and failure.
Source: madamenoire.com, "4 Tips To Start A Business While Working Full-Time", Kara Stevens No, April 22, 2015