Managing a Maine business comes with excitement. There are times when it would feel fun and rewarding. However, it can also be a challenging experience. It may even be emotionally draining sometimes. That is why it is necessary to make sure that you can fully handle whatever may come. If you are still unsure whether starting a business is right, check the pros and cons first. Understanding the process is crucial.
Pros of Forming a Business
- Having control. Being the boss means no longer having to report to a superior or follow instructions. This means being in charge of making big decisions and determining the path that the company will take. Your role will be crucial in determining whether the business venture will succeed or fail. With hard work, perseverance, and the ability to adapt to various situations, the business will be able to achieve its goals.
- Address the needs of targeted consumers. Seeing someone enjoy and benefit from a product or service feels good. This can bring on the feeling of validation knowing that what the business has to offer provides convenience and a solution to a certain problem.
- Build the team. As an employee, you do not have the freedom to choose who to work with. The team will be composed of individuals from different backgrounds who have various beliefs and personalities. Sometimes, employees are surrounded by colleagues that are sometimes not compatible. Additionally, a superior has the power to choose who and when to hire or fire someone. That means there is a certain level of uncertainty when it comes to an employee position in the company. As the business owner, you will be the one choosing who will join the team. This means finding the perfect fit for the values and vision of the company.
- Give back to the community. Forming a business has an impact on the community. Aside from offering accessible products or services to address the needs of the community, you also help the local economy by creating employment opportunities.
- Enjoy financial rewards. While running a company comes with financial risks, it also gives chances to make more than what employees receive. Meaning as the owner, seeing the results of all the hard work. If you successfully grow the company, it may even last longer in the industry and build wealth.
- There will be a lot of learning opportunities. As an entrepreneur, you will be involved in all aspects of the company. That means having numerous opportunities to gain more knowledge and new skills. As time goes by, you can even turn into an expert.
- Build equity. Being a business owner means building equity. After a certain period, decide whether to keep, sell, or pass it on to the next generation. Some people open a lot of businesses and sell them to someone else after ensuring that they are well-established. In such cases, use what has been earned from selling the company to finance another business venture. You may also choose to grow it so that it can be something your children may inherit.
Cons of Starting a Business
- Work harder. When forming a business, be ready to work more than before. Establishing a company takes a lot of hard work, so you may need to be on the job for more than 8 hours per day. There may be a point when you feel physically or emotionally drained. That is why it is necessary to be passionate about the business idea. It is important to remain motivated to keep moving forward even during tough times.
- Being responsible for everything. As an employee, chances are you have someone who has the ultimate responsibility for the performance and output of the team. But, as an entrepreneur, no one will be there for guidance all the time. As the boss, you make the decisions. So, figure out the best thing to do and avoid making mistakes that can lead to serious issues. In most cases, entrepreneurs start with trial and error to figure out the strategy that works best for the business.
- You may not earn for some time. Before launching a business, make sure to have enough funding. Having the financial capacity in order to cover bills while starting a business is essential. Many entrepreneurs do not get a salary during the early stages. Some also use their savings to cover their personal expenses.
- Feeling unsure of yourself sometimes. Many new entrepreneurs find themselves questioning and doubting themselves and their decisions. Having to take actions based on guesses can also be frustrating. However, as stated earlier, it is probably going to start with trial and error. Sometimes, even after spending a lot of time and money on a specific project, it may not end up with desirable results. Remember that all of these experiences will help you be a better business owner. After some time, realize that guesses are becoming more accurate.
- Entrepreneurship comes with risks and uncertainty. Trying to succeed is necessary to achieve success. However, it may not always be enough. Once it has been decided that starting a business is right, you have to understand that failure is a possibility. Do the best to minimize risks, but eliminating all of them is not possible. The business industry comes with uncertainty. External factors may be out of your control. For instance, more competitors may emerge and target the same consumers. The business environment and economy may also change.
What To Do
If you think that entrepreneurship is the right fit after weighing the pros and cons, then start preparing a solid business plan. Make sure to consider various factors, such as the necessary capital and how to market the products or services.
Then, decide on the right structure for the Maine business. Most startups choose a limited liability company (LLC) because of the asset protection and the flexible taxation treatment that it offers.
To create a company, you will have to undergo the registration process that the state has set. It starts by coming up with a distinguishable LLC name. Make sure no other existing entity in Maine uses the desired name. You may have to conduct an availability search in the business name database of the Secretary of State. Then follow the naming guidelines that the state imposes.
It is also necessary to nominate a registered agent. They can be an individual resident or a third-party organization. To find out more about the qualifications, read our article on Maine Registered Agent.
The next step is to formally register the LLC by filing formal paperwork. Then submitting a completed Certificate of Formation form to the Secretary of State and pay the $175 filing fee.
Depending on the industry the company is in, business activities, and the location of the business, you may have to secure additional business licenses and permits. Other tax and reporting obligations may also have to be shown. To find out more about forming a Maine LLC, check out this simple guide.
Starting a business in Maine requires having patience and attention to detail. For some new entrepreneurs, the multi-step process can be overwhelming. If you need help with the formation process, then contact a reliable third-party organization like DoMyLLC. Our team of experts can provide a personalized solution based on the company’s needs and circumstances. We can also serve as the LLC’s registered agent. Contact us now to find out more.
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