Every entrepreneur should identify what tasks need to be done and who will do them. Almost every new business will use outside professionals for the complex areas of law, accounting, taxes, and insurance. How much you use these professionals will depend on your expertise, the operating risks in your kind of business and your goals for the business.
Ø How Do I Select the Right Professionals?
Ø Ask friends and business associates for referrals.
Ø Interview several candidates–Remember, you are the customer.
Ø Do they have expertise relevant to you?
Ø Are your personalities compatible?
Ø Is the person you interview the one you will deal with?
Ø What is the fee structure?
Evaluate larger firms vs. sole practitioner–Larger firms have more resources but may lack personal service, and you may get assigned to a “junior.”
Accountants:
o Decide what accounting services you will need. Pay for what you cannot do yourself.
o Financial statement preparation (try to do basic bookkeeping in-house).
o Income taxes, payroll taxes (also consider a payroll service).
Business advice, financial analysis. (What good are financial statements if you don’t understand them? Good accountants tell you more than how much tax you owe.)
Lawyers:
v Determine legal issues to be faced. Outline your goals for the business.
v Product/service liability potential.
v Users of contracts.
v Intend to grow rapidly. Sell the business. Go public.
Insurance:
Ø Identify risks and get adequate coverage.
Ø Compare price only on identical coverage.
Ø Utilize agents who offer advice as well as policies.
Ø Beware, your personal auto and homeowners’ policies usually exclude coverage for business activities.
Qualified professionals are a good investment–they should make or save you money in the long term. It is possible to buy more service than you need, but it is far more common for new start-ups to foolishly scrimp on these important team members.
