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What factors should one be aware of when one starts an organization?
I have previous experience with working with an organization. I currently have started my own organization and am currently working on establishing it as an unincorporated organization.
#entrepreneur #STEM #business
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8 answers
Updated
Nate’s Answer
Hi Paridhi,
I'm impressed by your entrepreneurial spirit. That's great.
Keep in mind that the majority of new businesses fail and do not live up to the initial dream. This is because a significant amount of planning is missed in the initial process. In order to be successful, you need to think through your plan and make sure you execute it with discipline.
First, ask yourself: Who else is already doing this?
Do your research. It's highly unlikely that you will provide a solution that no one else has ever provided. But perhaps, you can differentiate your solution from your competitors. Research them and find out what you will need to do when competing for limited resources.
Also, ask yourself: Do I want to start something, or do I want to start this?
There's a difference in wanting to be an entreprenuer and having a great idea. Make sure you have done the planning necessary and truly believe in your idea before you launch your organization. After the initial build-up buzz is over, you want to still believe in your organization. Do what you can to research and make sure you believe in your idea before you launch your organization.
Finally, ask yourself: Who can help me?
Any new organization is going to need lots of support. Find out what tasks are necessary to fulfill your mission, and begin building an advisory board of people who can help you with finance, technology, management, etc. Begin building your network, and prioritize your culture. Team members may have expertise, but they may not have the same culture you want to breed, and that can be detrimental. Find people who can help you in expertise, but find people who will join for the mission and who will help build the culture you want.
I'm impressed by your entrepreneurial spirit. That's great.
Keep in mind that the majority of new businesses fail and do not live up to the initial dream. This is because a significant amount of planning is missed in the initial process. In order to be successful, you need to think through your plan and make sure you execute it with discipline.
First, ask yourself: Who else is already doing this?
Do your research. It's highly unlikely that you will provide a solution that no one else has ever provided. But perhaps, you can differentiate your solution from your competitors. Research them and find out what you will need to do when competing for limited resources.
Also, ask yourself: Do I want to start something, or do I want to start this?
There's a difference in wanting to be an entreprenuer and having a great idea. Make sure you have done the planning necessary and truly believe in your idea before you launch your organization. After the initial build-up buzz is over, you want to still believe in your organization. Do what you can to research and make sure you believe in your idea before you launch your organization.
Finally, ask yourself: Who can help me?
Any new organization is going to need lots of support. Find out what tasks are necessary to fulfill your mission, and begin building an advisory board of people who can help you with finance, technology, management, etc. Begin building your network, and prioritize your culture. Team members may have expertise, but they may not have the same culture you want to breed, and that can be detrimental. Find people who can help you in expertise, but find people who will join for the mission and who will help build the culture you want.
Updated
Michael’s Answer
Hi Pardihi, well it sounds like your well own your way to success. When you say organization. Your basically saying you want to be a business owner it seems. So there are many factors to consider. Do you want to start a non profit? Do you want to have employees? Do you want to operate locally, or nationwide,etc?
I think the most important step is knowing your long term goals! And I would do something out of passion and desire for the type of business/ Organization that interest you. Sometimes if you do things just for money you end up very unhappy. I wish you great success!
Michael
I think the most important step is knowing your long term goals! And I would do something out of passion and desire for the type of business/ Organization that interest you. Sometimes if you do things just for money you end up very unhappy. I wish you great success!
Michael
Updated
Deepak’s Answer
First of all you need to have a confidence in yourself that no matter what comes way you would reach the goal. Work hard and smart. Be a Leader not the boss. Keep your employees happy.
Updated
Elizabeth’s Answer
Hi Pardihi,
As others have mentioned there are a lot of considerations. It is a bit harder than putting a shingle on the door and offering goods and services.
I strongly suggest that you create a legal entity for your business. There are tax implications as well as they offer personal protection if something goes wrong. We all hate to think that could happen, but it can, and it is best to be protected in some way. Also, it can protect your personal assets. This may not be important now, but it could be if you marry somebody and join assets, or add a partner at some point.
Are you planning to offer a product or services? You need to have a well defined product/service in order to market yourself. I made the mistake of opening a business without being able to articulate what I was offering properly. I was successful enough, but it could have been better and less awkward when meeting potential new clients.
All of the other advice is sound and should be considered.
I would be happy to answer more specific questions, or if you need additional information I can provide.
Explore legal entity types
Explore any licensing requirements
As others have mentioned there are a lot of considerations. It is a bit harder than putting a shingle on the door and offering goods and services.
I strongly suggest that you create a legal entity for your business. There are tax implications as well as they offer personal protection if something goes wrong. We all hate to think that could happen, but it can, and it is best to be protected in some way. Also, it can protect your personal assets. This may not be important now, but it could be if you marry somebody and join assets, or add a partner at some point.
Are you planning to offer a product or services? You need to have a well defined product/service in order to market yourself. I made the mistake of opening a business without being able to articulate what I was offering properly. I was successful enough, but it could have been better and less awkward when meeting potential new clients.
All of the other advice is sound and should be considered.
I would be happy to answer more specific questions, or if you need additional information I can provide.
Elizabeth recommends the following next steps:
Updated
Raniel’s Answer
Hi Paridi, there are many factors.
First, I would start by asking who you customer is? What is the problem you think they have? Did you validate with them? How? Is this problem on your customer's priority list?
If there isn't a real and important problem to solve, it's very unlikely that you are going to create a business out of your efforts.
Occasionally I have some free time and I would be glad to help you more and maybe save you from common pitfalls.
Regards,
Raniel S. Ornelas
First, I would start by asking who you customer is? What is the problem you think they have? Did you validate with them? How? Is this problem on your customer's priority list?
If there isn't a real and important problem to solve, it's very unlikely that you are going to create a business out of your efforts.
Occasionally I have some free time and I would be glad to help you more and maybe save you from common pitfalls.
Regards,
Raniel S. Ornelas
Gurpreet here, Community Manager at CareerVillage.org. I have edited your response slightly to remove your Skype handle. For the safety of our community, we ask that students and professionals not provide contact info.
Gurpreet Lally, Admin
Updated
John’s Answer
As you start with a new company you quickly gain a clear understanding of their culture and values. This will be key in understanding how you would/should expect to interact with others. Additionally, with any company you should be looking for areas you can quickly help make a difference in.
Updated
Jim’s Answer
Great question, and fortunately, there is a lot of good information out there that may be helpful. The top considerations, in my opinion are; 1) what structure is the best fit 'today' with a view of where you hope the business will be in the future. 2) taxation considerations and 3) what state to register your business, should you choose an LLC or other business form.
It is common to start as an LLC, registering it in your home state. An LLC allows for the pass through of profit to you, and you only pay taxes once, at the individual level. Corporations require more work to maintain and can be subject to taxes at the Corporate level and personal level. Both forms offer protection to you personally. You can open bank accounts in the company name, etc.
If you hope to hire employees and offer stock incentives, that is another consideration.
LegalZoom has a good amount of resources and will, for a fee, handle much of the administration and provide template documents i.e. Operating Agreement, etc. to get you up and running. Good Luck!
It is common to start as an LLC, registering it in your home state. An LLC allows for the pass through of profit to you, and you only pay taxes once, at the individual level. Corporations require more work to maintain and can be subject to taxes at the Corporate level and personal level. Both forms offer protection to you personally. You can open bank accounts in the company name, etc.
If you hope to hire employees and offer stock incentives, that is another consideration.
LegalZoom has a good amount of resources and will, for a fee, handle much of the administration and provide template documents i.e. Operating Agreement, etc. to get you up and running. Good Luck!
Updated
Blake’s Answer
Hey Paridhi,
I think the first thing is defining your organizations core values. Once you have decided those, I think the most important thing is sticking to those values. Consistency is key.
Thanks
Blake
I think the first thing is defining your organizations core values. Once you have decided those, I think the most important thing is sticking to those values. Consistency is key.
Thanks
Blake