A recent article from the publication Business Insider references the abundance of “entrepreneurial enthusiasm” that is on clear display across the United States and always has been.
The U.S. is a country of promise and hope, and that has always been evidenced in its business sector, where a steady stream of start-up enterprises has been a constant feature of American economic life since the nation’s inception.
Business Insider duly notes the optimism attendant to that, which drives the dreams of company principals and owners seeking to launch new products and services.
And it also notes this: Much of that optimism seems to be reasonably misplaced.
It’s a “cruel world” out there, states the Insider, and many new business entrants clearly haven’t prepared for it.
Empirical evidence drives home the point. Reportedly, about half of all new businesses fail within five years of their creation.
Unsurprisingly, the reasons for a relatively quick demise are often several and interconnected. Funding might be hard to obtain; indeed, “cash flow” issues are often cited by failed enterprises. An unclear business vision will understandably undermine success, as will a less-than-optimal management team being on board. Maybe an inappropriate business form was selected. Perhaps rivals are better organized and more focused in their marketing and sales efforts.
There are obviously lessons to be learned from failure by new business participants who are obviously seeking to avoid it.
A proven commercial law firm can point them out and work closely with a business client to help promote success through timely and careful planning on matters ranging from entity selection and the raising of capital to risk identification/avoidance and dispute resolution.
Sound and well-considered legal input at the right time can be a materially contributing factor to downstream success for business entrepreneurs and start-up enterprises.