How to Develop a Successful Business Idea

IL business attorney, Illinois business lawyerMost of us, at some point or another, have had those fleeting thoughts about a product or service that could serve as the foundation for a new business. On the other hand, maybe you have watched another company offer goods and services while knowing that you could do it better. So how does one go from the “idea” phase to the “action” phase of starting the actual business based on the idea? There are, of course, many steps, but the first important one is to determine whether or not the idea is truly marketable.

What Is Your Idea?

Not every business idea is going to grow into the next Microsoft or Google, and that is okay. A successful service or product is not necessarily going to break records or reshape the world as we know it. In order to be profitable, your idea simply needs to solve some type of problem for those you intend to reach.

With that in mind, you need to think about what your idea actually is. Is it a physical item that you intend to manufacture and sell? Is it an improvement on an existing product? Or perhaps, it is a service that you expect to provide for your clients in exchange for payment. No matter what you have in mind, a clear understanding of the idea is critical.

Learn as Much as You Can

Before you launch your business, you will need to research the viability of your idea and how it might fit into the current economic landscape. For some people, industry reports and formal market research studies are appropriate, but it is important to look at more than numbers. You should also talk extensively with friends, family members, and trusted business associates regarding your idea. Be sure to look beyond the friendly and supportive comments and to hear what they are saying about whether they would spend money on your idea. If you want a forum with fewer personal entanglements, there are thousands of message boards and other resources available online where entrepreneurs from all over the world discuss ideas and share their perspectives.

Keep Yourself Organized

By its very nature, an idea is nebulous, and even if you have jotted down a few notes, there are many factors that you will need to consider as you take your idea from a concept to a business plan. As early as you can in the planning process, starting writing things down. Make a list of potential advantages and disadvantages, and keep track of any challenges or opportunities that arise along the way. These records will serve as the basis of your business plan, even if you need to put the idea on hold for a time and you decide to come back to it later.

Work With a Wheaton Business Lawyer

If you have a possible idea for a new business, it is never too early to speak with an experienced DuPage County business law attorney from Stock, Carlson & Duff LLC. Our team will provide the guidance you need and help you build your new venture from the ground up. Call 630-665-2500 for a confidential consultation today.

 

Sources:

http://www.entrepreneur.com/article/225513

https://www.forbes.com/sites/forbesbusinesscouncil/2019/10/30/nine-ways-to-figure-out-if-you-have-a-winning-business-idea/

Avoiding the Most Common Business Partnership Killers

Illinois small business lawyersSavvy entrepreneurs often pool their skills and resources to increase the chances of success. Unfortunately, when a partnership is formed under the wrong conditions, this pathway to success can quickly become a business owner’s worst nightmare. Learn how you can avoid the most common business partnership killers in the following sections, and discover how a seasoned business law attorney can help you proactively mitigate the possibility of a failed partnership.

Partnerships Born from a Lack of Money or Skill

In an ideal partnership, business owners have “synergy,” or a way that they complement one another. As an example, one partner might have the marketing tools and resources that the company needs to be successful while the other has a knack for thinking “outside the box.” Unfortunately, if one partner “needs” another in order to achieve success – perhaps one person has the idea and marketing skills while the other possesses the capital to start the business – any potential benefit of a partnership may be lost. To avoid this issue, partners are encouraged to share expenses, not capital. Also, you should never give away something that is yours (i.e. information, ideas, etc.). Instead, create an iron-clad contract that can protect your ideas and concepts, even if the partnership ultimately fails.

Splitting the Business 50/50

Doing a 50/50 business split might seem like the best way to avoid conflicts, but it can actually do you more harm than good. In fact, successful businesses are rarely split right down the middle. Instead, most businesses have a 60/40 or 70/30 split, where one party (typically the one with the idea, but not always) owns more of the company. Not only does this protect you, should the business end, but it also gives your customers a “point of contact,”  a person who is responsible and accountable for operations.

Partnerships Without a Legal Contract

While as contract is not needed to start a partnership, entrepreneurs are highly encouraged to ensure they have one before embarking on a shared venture. Able to protect your business and ideas while also decreasing the risk of problems if the business fails, your contract should define every aspect of the partnership – from how responsibilities and shares are split to how the partners can exit the business if they so choose. An experienced business law attorney can explain your options and assist you in developing a contract that benefits and protects all parties.

At Stock, Carlson & Duff LLC, we prioritize the future success of our clients. Backed by more than 40 years of legal experience, our DuPage County small business attorneys can assist you with all aspects of starting your business. Schedule your personalized consultation to get started. Call 630-665-2500 today.

Source:

https://www.entrepreneur.com/article/196912

Structuring Your Business – Limited Liability Partnerships versus Limited Liability Companies

Wheaton business law attorneysThe structure of a business is more than just a critical element; it is what dictates nearly every aspect of the business. Sadly, too many business owners fail to give the decision of how to structure their business enough thought, which can place them and their partners and investors at risk for legal and financial consequences. Discover how even the smallest of differences in structure, such as those seen in limited liability partnerships (LLP) and limited liability companies (LLC), can make all the difference in the future stability of your company, and learn how an experienced Illinois business law attorney can assist you in making the right decision for your company's needs.

Examining the Similarities Between LLPs and LLCs

For the most part, LLPs and LLCs are formed, structured, and treated the same. Each provides the partners with a "pass-through" option on their taxes, which allows them to avoid the "double taxation" that corporations are required to pay. LLCs and LLPs also handle partner buy-in and sell-out in a similar fashion, and neither has a limit on the number of partners that the business can have. Because of this, LLPs and LLCs have become quite popular among businesses that might have otherwise been forced to register as a corporation.

Understanding the Differences Between LLPs and LLCs

Although there are many similarities between LLPs and LLCs, there are also some distinct and important differences. First, an LLC does not offer partners the same level of liability protection as an LLP, should a lawsuit or some other legal action take place. Instead, all partners may be held equally accountable in an LLC. In contrast, an LLP is only required to have one managerial partner. All others can receive protection from the actions of managerial partners, provided they do not take on a managerial role themselves.

Business owners should also understand that they cannot always structure the company however they want. Some states have specific restrictions. For example, Illinois does not permit banking or insurance institutions to form LLCs. Instead, they must structure as either a corporation or an LLP.

Contact Our Wheaton Business Law Attorneys

At Stock, Carlson & Duff LLC, we understand the difficult decisions that start-up businesses must make, such as those that pertain to business structure. Dedicated and experienced, our Wheaton business law attorneys can assist you and your partners in making the most sensible choice for your company. Call 630-665-2500 and schedule your personalized consultation today.

Sources:

https://www.illinois.gov/dceo/SmallBizAssistance/BeginHere/Documents/Starting%20Your%20Business%20In%20Illinois%202016.pdf

http://smallbusiness.chron.com/difference-between-llc-llp-3760.html