Throughout Ohio, new businesses open their doors on a daily basis. These consist of new retail stores, technology companies, restaurants and a number of other enterprises. Prior to the business opening, entrepreneurs spend numerous hours and hard-earned dollars in preparation. These are both often important pieces of the business planning process and the ultimate success of the business.
Research indicates that securing the necessary funding is an important part of the process. In many cases, there appears to be a funding gap depending upon the type of business, its ownership structure and the area in which the business operates. In a number of instances, small business entrepreneurs appear to be hesitant to apply for loans necessary to properly fund the business. Such action can be detrimental to business growth.
In other instances, some small business entrepreneurs appear to be hesitant to secure business loans with business assets. Rather than going this route, they often use personal lines of credit or unsecured loans to meet business needs. While this may appear to be in the best interest of the business, it often puts the owner’s personal assets and credit at risk. If the business is unable to pay its debts, it is possible that lenders will seek payment from the individual.
Business planning is an important part of conducting business in Ohio. As a part of this planning, the entrepreneur often must make decisions regarding how to finance the initial startup of the company and future growth. Experienced legal counsel can assist in analyzing the structure of the business and the best way to protect the individual and business throughout this process.
Source: qz.com, “Why starting a business as a woman is so hard, in five charts“, Preeti Varathan December, Dec. 7, 2017