Most entrepreneurs or small business wear many hats, especially in the early days. They can't do it all and finding good services providers to back them up is crucial to the success of the business. While most hate to spend money on lawyers and accountants, the services provided by these individuals are very important.
Spending the money to have a lawyer review your lease, your customer contracts and employee contracts can save you money, time and frustration later. Many new business owners are not familiar with all the terms in a lease and may not be aware that they will be responsible for taxes, maintenance costs and insurance as well as the regular rent and this can make a huge difference in their monthly expenses.
Having an accountant set up your accounting system and helping monitor your cash flow is also key to the success of a new business. I can't tell you how many times a start up is aghast when they finally get their accounting set up and realize how much money they have spent on networking or packaging or office supplies. Just keeping an eye on the checking account balance isn't the same as knowing exactly what you are spending the money on. Getting the accounting set up before you start the business means you will be able to compare how you are actually spending the money to your budget or business plan. A good accountant can spot potential cash flow issues before they arise and help the business owner make adjustments to avoid the problem.
Hopefully this has helped persuade any potential entrepreneurs to find a good attorney and accountant before they open shop and encourage existing small business owners to find good service partners as well. Next week we will discuss how to find the right attorney and accountant.