Creating Your Business Team
 People interested in starting a small business own an entrepreneurial spirit. That is a must-have quality for tackling the exciting, but difficult, task of building a successful business.
It is the spirit which drives men and women to endure personal sacrifice and long hours while making essential decisions that will make or break the business.
No one should build a business alone no matter how driven or competent he or she might be. Even if you don’t plan on hiring employees there will still be plenty of legal and accounting questions that must be answered properly and all businesses need suppliers. A well built Business Team is usually composed of a blend of professionals who work on retainer as needed and of staff on the business payroll.
- Lawyer
- Accountant
- Banker
- Suppliers
- Employees
- Others such as real estate professionals or architects
Not everyone needs to be on the business payroll full-time in many cases. A large corporation may hire a full-time lawyer and accountant, but many entrepreneurs will establish a working relationship with these professionals. They are like pay-as-you-go members of your business Team and provide services as needed instead of on a full-time basis.
Ready When Needed
 The crucial point to keep in mind is that when you need these professionals, it’s important that they already have a good understanding of your business.
This is the only way they will be able to help you make the right decisions for long term success.
The professional business Team of banker, lawyer and accountant will assist you with setting up your business. After start up they should remain actively involved.
Other professionals making up the Business Team will be accessed on a regular basis. The quality of your suppliers and the efficiency of your employees directly impacts profitability and business success.
One of the first issues new business owners face is learning how to build a quality business Team. It means being willing to surrender some control by admitting that it will be necessary to rely on others.
This does not mean giving up the final decision making authority. It means keeping your fingers on the pulse of all aspects of the business. It also means maintaining an excellent working knowledge of the business so you can have intelligent discussions with your business Team professionals.
Final Say
After all, the entrepreneur has the final responsibility for all business matters. It is important to have a full understanding of how each business segment is interrelated. The quality of your Business Team will be a major factor in your ability to make knowledgeable decisions.
The next question is this: How do you assemble this business Team when first creating your new business? How do you find expert professionals and quality employees?
Developing a business plan that addresses business Team building is essential. Following is a review of each of the professionals that the entrepreneur will rely on throughout the life of the business. In fact, some of them will play important roles before the business officially comes into being.
Lawyer
One of the very early decisions that must be made when starting a new business is the legal form it will take. Will it be a sole proprietorship, a partnership, or a corporation? There are many legal ramifications related to each business form. But that is just the beginning, because there will be a number of legal matters requiring professional advice.
- Business financing arrangements
- Supplier contracts
- Patents or trademarks for brand identification
- Tax planning
- Real estate agreements
- Business forms
- Debt collection procedures
An attorney can help you meet legal requirements for business set-up. He or she will also be an invaluable resource as legal problems or issues arise. For example, if you were to be sued for whatever reason, having an attorney already familiar with the business can save a lot of research time and fees. You are also more assured of getting quality legal assistance.
In addition, establishing an ongoing working relationship with an attorney will also make it much easier to stay on top of changing laws and tax regulations. They can change rapidly and frequently. Changes expose your business to litigation or tax overpayment if you don’t stay current and make necessary procedural adjustments along the way.
Finding an Attorney
How do you choose a good attorney? There are different ways to collect names of attorneys you can consult. You want to find an experienced attorney that you are also able to work well with on a regular basis.
- Ask for recommendations from people you trust
- Ask other businesses in the same industry as yours or that have the same legal form
- Ask your banker or accountant
- Ask attorneys you know
- Ask for names from a recognized legal association
When you ask for recommendations from others, it is important to ask why they are suggesting these particular names of lawyers. In other words, find out what qualities the attorneys have that set them apart from others.
The next step is to verify credentials of each of the attorneys through the local bar association or even the Better Business Bureau. Then you can begin to make appointments for consultations. During the initial interviews it is important to ask for references which can be checked.
First Interview
During the interview it’s also crucial that you explain exactly what you expect in terms of ongoing professional assistance to make sure the attorney is willing to comply. For example, do you expect him or her to attend essential meetings?
One other important factor to keep in mind is the pay arrangement you want to establish. Attorneys charge in a number of different ways.
- Hourly rate
- Fee per service rate
- Monthly or yearly retainer
- Contingency fee
If you expect to frequently use an attorney then you would probably be interested in a retainer arrangement. If you only need legal service periodically as issues arise, then the hourly rate or fee per service pay arrangements are possibilities. Contingency fees are those paid as a percentage of proceeds awarded in court as a result of winning a case.
Before you interview any attorneys, it is helpful to make a list of questions to ask during the interviews.
Accountant
Much of the previous discussion on hiring or retaining a quality attorney for your Business Team also applies to putting an accountant on your business Team. There are many accounting matters that should be addressed before the company is even formed.
- Type of accounting software system
- Accounting cash or accrual basis
- Loan structures that reap tax benefits
- Equipment financing issues
- Payroll system
- Business plan development
- Insurance
Once the business is operating, the Business Team should include an accountant even if only on a retainer or per hour basis. A good accountant can provide knowledgeable advice on a number of financial matters.
- Tax planning and estimating
- Accounting rule changes
- Revenue and expense forecasting
- Internal controls to minimize potential losses from theft or waste
- Trend analysis
- Auditing
Small business owners usually do their own bookkeeping and then let a licensed accountant prepare the month and year-end statements and tax reports. Medium sized to large businesses often have an accountant on the payroll who works full-time.
The important point when building a Business Team is to have access to the services of an accountant who understands the intricacies of the business. The accountant can provide ongoing sound advice to keep the company viable and financially healthy.
Counting on the Accountant
What qualifications will you look for in an accountant?
- Licensed as a Certified Public Accountant (CPA) or whatever professional licensing is used in the country where the business is located
- Years of experience
- Relevant accounting experience
- Specialization
- Accessibility
Just like attorneys, accountants often have various fee schedules. They may charge by the hour or offer a monthly contract service rate.
The fee arrangement that will work best for the new business depends on how often you plan on consulting with the attorney. If you will be asking for professional accounting advice on a regular basis then a contracted rate might be preferable over an hourly rate.
Aligning the Accountant with the Business
Finding the right person for your business Team is crucial. Whether you decide to hire a full-time accountant or establish a consulting/service arrangement, it’s important to find a good accountant with qualifications that match your needs.
- Ask for recommendations from other businesses in the same industry as yours or that have the same legal form
- Ask your banker or attorney
- Ask for names from a recognized professional accounting association
- Check with a local Chamber of Commerce or other local business organization
Once you have a list of names, it is once again time to set up some consultation meetings. At those meetings you should have a list of questions ready. You will also want to ask for references that can be verified at a later time.
The Business Team is beginning to take shape. You have an attorney and an accountant so now it’s time to find a banker you can work with on a regular basis.
Banker
In your business plan there will be a financial section addressing many needs. Businesses need a close working relationship with a financial institution for daily operations. It’s just as important to have a banker who understands your business and can help you obtain financing.
Following is a short list of the many ways a banker can assist your business.
- Start-up loans
- Real estate financing
- Capital equipment financing
- Line-of-Credit
- Short and long term working capital loans
- Business accounts for checking and payroll
- Merchant services
- Cash management services
When establishing a new business, including a banker on your Business Team gives your business a valuable reference and resource. This is true even if you don’t get a loan right away. For example, a reference letter from a banker is an invaluable asset when establishing supplier accounts.
A banker provides another perspective from the viewpoint of the world of credit and financing.
Banking on Excellent Banking Services
How do you find a good banker?
- Ask your accountant or lawyer which banks and bankers have been most helpful to businesses similar to yours
- Set up consultation appointments with area bankers from dependable banks offering business services
It is recommended that you meet with a branch manager who is more likely to be in the position for years rather than one of the bank underlings. The goal is to establish a long-term relationship that will provide the services needed as your business expands.
Suppliers
Thanks to the internet even a small business can find suppliers from around the world. But if you choose to purchase business inventory for resale and operational supplies through the internet, you will want to build a long term relationship with some local suppliers.
What many new business owners don’t realize is that suppliers are business Team members because they can supply critical services that enhance the possibilities of long term success.
- Discount pricing
- Pricing controls
- Inventory management
- Credit accounts
Most businesses will have a number of suppliers and the ones chosen will depend on your business. You can purchase parts and inventory through manufacturers or wholesalers or you can buy through the internet and have goods imported. Some suppliers may also be service organizations such as maintenance or housekeeping.
Keeping Your Business Supplied
Finding reliable suppliers will pay off in many ways, but first you have to find them. There are some general guidelines to keep in mind as you build your business Team and include suppliers.
- Make a list of potential suppliers
- Check with the Better Business Bureau to eliminate any that have poor ratings or complaints filed against them
- Request price quotes from various suppliers
- Request supplier delivery and payment policies and terms
- Determine supplier discount policies for order sizes or prompt payment
- Verify financial solvency of suppliers
- Request and check customer references
- Meet with sales managers of suppliers to determine compatibility
- Give suppliers your requirements and ask if they can be met
Making it Work!
When first starting a business, establishing supplier accounts can be one of the more difficult tasks. Most new businesses don’t have financial or bank references they can supply. There is no payment history established yet.
You might have to agree to some terms in the beginning that are more restrictive than you would like. Eventually your business will earn better terms.
Good suppliers are essential members of your Business Team. Supplier sales representatives will help you manage your expenses, inform you of price discounts and special offers, and assist you with inventory and cash management.
Employees
Finding the right employees for your new business is a broad subject. The size and complexity of the business will determine what skills are needed. The very small businesses may not open with any employees but intends on adding them to the business Team later on.
The characteristics to look for in employees depend on the job they will be doing. Factors to keep in mind include the following.
- Responsibilities
- Education required
- Past experience
- Skills or special knowledge required
- Physical demands of job
- Specialized job needs
Recruiting the Best employees
The employees within your organization can make or break the business. There have been many new businesses that fail simply because the wrong employees are put into the wrong positions.
Finding skilled employees can be a challenge. But there are a number of ways to recruit qualified men and women to your business Team.
- Advertise in newspaper or trade journals
- Ask professional organizations for recommendations
- Use an employment agency
- Use online job services where both open positions and perspective employee resumes can be posted
- Hire independent contractors
- Ask your banker, accountant and lawyer for references
Naturally you will have to interview those candidates who seem to fit the minimum qualifications. It is important to closely check references supplied. During the interview it is also important to make sure you ask all the questions necessary to determine if the potential employee has the right skills, attitude, and potential you need on your Business Team.
In Summary…
 Starting a new business is an exciting proposition that can quickly turn sour if you don’t build a strong business Team.
The complexity of operating even a single person business is astonishing in this day and age.
The complexity makes the need for professional advice and assistance a requirement rather than an option.
Spending quality time during business formation to develop the kinds of working relationships needed with an attorney, accountant, suppliers and employees can mean the difference between a failed start-up and a successful growing business.
Chosen wisely, the professionals on your Business Team will provide a wealth of experience and knowledge that makes decision making much easier.
As an entrepreneur you are not giving up your freedom or control when building a business Team. You are just harnessing the professional help you need for success!
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