Choosing
Professionals to Assist You
Nearly every small business owner will need the assistance of
an accountant, attorney, banker, and insurance agent at one time
or another. Some also hire a management or marketing consultant.
In fact, if you decide that you do need the help of a
professional, finding a good one should be one of the very first
steps you take to start your new business. Some of the first
steps you'll be taking - deciding on the form of your business,
for example - will be easier if you already have professionals
lined up.
Which professionals will you need? The first step in
answering that question is for you to understand how each
professional can help you. Here's a quick look at the types of
assistance each can provide to you:
- Accountant - sets up your books; prepares your
taxes; provides you with tax advice related to the operation
of your business, such as how to choose the best retirement
plan and how to take advantage of tax deductions.
- Attorney - helps you choose the right form of
business; makes sure the proper papers are filed; drafts and
interprets contracts and leases; defends you if legal action
is brought against your business; represents you if you
bring legal action against someone else; provides you with
legal advice related to the operation of your business, such
as the rules for hiring and firing of employees.
- Banker - helps you get financing; helps you
establish credit card accounts; works, in many cases, as
your silent partner, providing you with business operation
advice.
- Insurance agent - evaluates your insurance needs;
provides you with advice on which types of coverage you
need.
- Management and marketing consultant - provides
basic business operation advice; provides pricing and
inventory advice; provides sales and advertising advice.
The next step is for you to assess your own skills and the
needs of your business. Do you know how, for example, to
incorporate yourself or to set up your own financial
recordkeeping system? If so, perhaps you can save some money by
doing it yourself.
An assessment of your business needs does not have to be
exhaustive, but it should be as comprehensive as possible. The
reason the assessment is necessary is to enable you to make an
informed decision about the services the professional will
provide. Being aware of the business's needs allows you to
consider suggestions from the professional and to make the best
decisions for your business.
Once your business's needs have been assessed, the next step
is to locate a professional. A good place to start your search
is in your own home. If you have an accountant, lawyer,
insurance agent, or other professional who handles your personal
matters, chances are they will be happy to handle your business
matters, or at least provide a reference to someone who will. If
you don't have a professional who handles your personal matters,
seek referrals from friends and relatives.
You can also try to find a professional as follows:
Accountant - ask business associates and other small
business owners. If you have a banker, attorney, or insurance
agent, ask him or her for a recommendation. Or contact the
American Institute of Certified Public Accountants (AICPA) at
Harborside Financial Center, 301 Plaza Three, Jersey City, New
Jersey 07311; (212) 596-6200. If you're interested in joining a
professional association, you can get more information from them
or from your local chamber of commerce. When all else fails,
look in the Yellow Pages. Be sure you shop around and compare
rates. Negotiate the fees in advance.
Attorney - ask business associates and other small
business owners. If you have a banker, accountant, or insurance
agent, ask him or her for a recommendation. Or contact the
American Bar Association at 750 North Lake Shore Drive, Chicago,
IL 60611; (312) 988-5522. If you're interested in joining a
professional association, you can get more information from them
or from your local chamber of commerce. When all else fails,
look in the Yellow Pages. Initial consultations are usually
free, but make sure that's true before you make an appointment.
Be sure you shop around and compare rates. Negotiate the fees in
advance.
Bankers - start with the bank where you have your
personal accounts. If that doesn't work out, ask business
associates and other small business owners. Or contact the Small
Business Administration at 1-800-827-5722. They keep track of
which banks in your area have the best small business-lending
records.
Insurance agents - again, ask business associates and
other small business owners. Look in the Yellow Pages. Be sure
you shop around.
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Work Smart
As a small business owner, you'll probably
need several types of business insurance. Having
a different insurer for each type of coverage
can be a lot of trouble, while having all of
your coverages with the same insurer can be
needlessly expensive. Your best bet may be to
look for an independent insurance agent because
you can have one person handle all of your
insurance needs and they can shop around for the
lowest rates.
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Finally, trade associations, local chambers of commerce,
rotary clubs, and similar organizations may provide free or
limited professional services. At a minimum, they should be able
to provide referrals to professionals that serve the
organization.
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