Entrepreneurs in Texas and around the country are generally a committed and focused group. They often spend most of their waking hours thinking of ways to grow their businesses or overcome obstacles that could be holding them back, but this single-minded approach does have its drawbacks. While savvy business owners may work tirelessly and enthusiastically, they also take steps to ensure that they are able to survive financially should they encounter setbacks.
Entrepreneurs generally believe passionately in their commercial ventures, and they may be tempted to plow whatever profits they generate back into their businesses to spur further growth. While reinvesting profits with the intention of generating even higher amounts may be a sound business strategy, failing to balance their business and personal financial matters could leave business owners vulnerable should the economy crash or some sort of disaster strike. The bankruptcy courts frequently deal with petitions from once-thriving businesses that have fallen on hard times, and entrepreneurs who do not diversify could be left with few options should their fortunes turn.
While many business owners have personal estate plans in place, a great many fail to develop succession plans for their companies. These plans could include strategies for funding a change of ownership, a formula for determining the value of the business and details of how assets will be transferred to heirs. Having such a plan in place could provide peace of mind for entrepreneurs and may prevent bitter disputes in the future.
Experienced business law attorneys could help entrepreneurs to prepare themselves financially for unexpected events by assessing their exposure to workers’ compensation or personal injury lawsuits and suggesting strategies designed to insulate against these legal risks. Attorneys could also recommend business entities like corporations and limited liability companies that may protect the personal assets of entrepreneurs should litigation be initiated against their businesses.