Creating Your Business Team
 No one should build a business alone, no matter how driven or competent he or she might be. A well-built business team is usually composed of a blend of professionals who work on a retainer or on your payroll. These professional may include, a lawyer, an accountant, a banker, suppliers, employees, consultants, and others.
Not everyone needs to be on the payroll. A large corporation may hire a full-time lawyer and accountant, but many entrepreneurs will establish a working relationship with these professionals on more of a part-time, consignment basis. They can be pay-as-you-go members of your team and provide services as needed instead of working for you on a full-time basis.
Your Team: Ready When Needed
The crucial point to keep in mind is that when you need these professionals, it is 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 team consisting of a banker, lawyer, and accountant, will assist you with setting up your business. After the start up phase, they should remain actively involved.
One of the first issues new business owners face is learning how to build a quality team. It means being willing to surrender some control and relying on others. However, this does not mean giving up the final decision; it means you are in control but, your team is there for help when you need it.
Final Say
 The entrepreneur has the final say for all business matters. It is important to have a full understanding of each business segment. The quality of your team will be a major factor in your ability to make knowledgeable decisions.
What You Should Ask Yourself:
- How do you assemble your team when first creating your new business?
- How do you find expert professionals and quality employees?
The following is a review of each of the professionals that an entrepreneur will rely on throughout the life of the business. In fact, some of them will play important roles before the business officially starts.
Lawyering Up
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 the way you register your business. However that is just the beginning; there will be a number of legal matters requiring professional advice such as:
- Business financing
- Supplier contracts
- Patents, or trademarks
- Tax planning
- Real estate agreements
- Business forms
- Debt collection procedures
An attorney can help you meet legal requirements for setting up your business. He or she will also be an invaluable resource as legal problems or issues arise. For example, if you sued for whatever reason, having an attorney already familiar with your 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 easier to stay on top of changing laws and tax regulations.
Finding An Attorney
How do you choose a good attorney? There are different ways to collect names of attorneys, here are a few:
- Ask for recommendations from people you trust
- Ask other business people in related industries
- Ask for names from a recognized legal association
When you ask for recommendations from others, it is important to ask why they are suggesting the lawyer. In other words, find out what qualities the attorney has that sets them apart from others.
The next step is to verify credentials of each of the attorneys through the local bar association or 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 is also crucial that you explain exactly what you expect in terms of ongoing professional assistance. For example, do you expect him or her to attend essential meetings?
One other important factor to keep in mind are the fees. 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, then the hourly rate is better suited. 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.
Finding An Accountant
Much of the previous discussion on hiring or retaining a quality attorney for your team also applies to getting an accountant on your team. There are many accounting matters that should be addressed before the company is even formed.
- Type of accounting software system
- Accounting method, cash or accrual basis
- Loan structures that reap tax benefits
- Equipment financing issues
- Payroll system
- Business plan development
Once the business is operating, the 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
- Trend analysis
- Auditing
Small business owners usually do their own bookkeeping and let a licensed accountant prepare the month, 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 team is to have access to an accountant who understands the inner workings of your business. Your accountant can provide ongoing sound advice to keep your company viable and financially healthy.
Counting On Your 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 your business is located
- Years of 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 your new business depends on how often you plan on consulting with your accountant. 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 Your Accountant With Your Business
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
- Ask your banker or attorney
- Ask for names from a recognized professional accounting association
- Check with your local Chamber of Commerce or other local business organizations
Once you have a list of names, it is once again time to set up 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.
At this point your 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
Business owners need a close working relationship with a financial institution for daily operations. It's 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
- 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 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.
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
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
- Inventory management
- Credit accounts
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 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
- 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 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 because 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 but, eventually your business will earn better terms.
Good suppliers are essential members of your business team. Sales representatives will inform you of price discounts, special offers, and will assist you with inventory.
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. Many new small businesses open with no employees but also with intentions of hiring once the business has stabilized.
The characteristics to look for in an employee depends on the job they will be doing. Factors to keep in mind include the following:
- Education
- Past experience
- Skills or special knowledge
- Physical demands of the job
- Specialized job needs
Recruiting The Best Employees
The employees within your organization can make or break your 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 team.
- Advertise in newspapers 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
Naturally you will have to interview those candidates who seem to fit the minimum qualifications. It is important to closely check references. During the job 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 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 the start-up phase 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 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 team. You are harnessing the professional help you need for success!
Related Resources From The Web:
Create a Winning Management Team
Small Business Leadership
Startup Team Business Plan: Create business plan team approach
How To: Create an Effective Team
Assemble Your Support Team
Video:
Building a Strong Business Team by Creating a Code of Honor
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