The Overlooked Requirements to a Successful Business that Every Startup Business Needs to Know
In every business school marketing 101 class, you learn of the 4 Ps: product, price, place, and of course, promotion. But beyond the classroom, every entrepreneur needs to learn 2 more Ps: people and protection.
Often times, these two Ps are not discussed much. But every successful business owner will tell you that your employees help make the business successful. Talented, dedicated, and motivated employees drive a business to not only succeed but also keep ahead of the competition and marketplace. Hire the right employees, and you will set your business to succeed.
Protection (i.e. legal protection) is sometimes demoted as a low priority item as a business entrepreneur is working on a million other things needed to be done to launch a business. After all, if the business doesn't launch successfully, then there may be nothing to protect. But if you don't start to think about legal protections and hiring a legal advisor at the start of your business, then the more likely your great idea, your great business, and your control of both could be lost.
Forming an LLC or formal partnership at the start becomes important if your partners offering different levels of labor and financial contribution to the business. In addition, an operating agreement or detailed partnership agreement is vitally needed to protect your interest in case co-owners start to fight. These agreements should map out expectations of all owners as well as provide an orderly dissolution of owners from the business.
Some great ideas can be patented, copyrighted, and trademarked. Without consulting a legal advisor, your million dollar idea can be stolen. You might want to spend some of your initial start-up money to consult a lawyer and understand the steps and information needed for an intellectual property application. With a lawyer's guidance, as you develop your idea into a business, you can properly document the development and the protectable interest in your idea.
If you want to successfully turn your great idea into a great business, then don't overlook hiring the right people and creating protections for you and your business. By strategizing all 6 Ps in your business plan, you are setting yourself and your business up for success.