Key Harrington Barnes, PC

Developing a business idea

Texas entrepreneurs should keep in mind that a good idea is not enough to start a new company. Businesses must meet a need, and planning carefully before launching is critical. That planning should also demonstrate the idea's viability.

The first step is research, but this does not just mean researching potential competitors. An entrepreneur should have a handle on the entire sector because this provides a better picture of the potential challenges. A broad understanding of the sector will also result in a better understanding of the market and may inspire more ideas.

While it may seem like entrepreneurs should surround themselves with people who encourage them, they are much better served by skeptics. People who have decades of experience in the industry and who are ready to tell them all the reasons their business idea won't work are more valuable from the standpoint of starting a new venture. These people will also serve as a good measure of what will and won't be understood about the business model and what needs refining.

Finally, it is important to plan every aspect of the business before launching it. This means understanding all the process and formulating multiple plans for the same business. It is not possible to plan for every eventuality, but creating a solid foundation can guard against volatility.

One aspect of business planning is choosing an entity, and an attorney may be able to help with this and other aspects of business formation. There are different considerations, advantages and disadvantages in choosing a limited liability company, a corporation or some other form, and an attorney can explain the differences.

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