Few decisions are as exhilarating as the decision to start your own business. Getting married? Having kids? Maybe these are bigger deals. Maybe! But just like forming a family, starting a business is a life-changing decision that, whatever the outcome, will forever change any person who gives it a shot.
The challenge facing every aspiring business owner is deciding how much and in what to invest your usually limited resources as you are getting your business off the ground.
For many new business owners, acquiring customers is, of course, an urgent and obvious need. Spending on that acquisition is an easy call, and can even be fun. Much less fun, but maybe more important, are defensive investments in protection and security. These investments, like insurance for employee or customer injuries, or backups and firewalls for your data, are not sexy, but are just as necessary as investments in growth. Without adequate insurance and protection, one moment of bad luck, or one encounter with the wrong person, can undo years of hard work in an instant. And the problem with not building these protective measures in from the beginning is that it does not get easier as the business matures. The opposite, actually.
One protective measure in which every serious business needs to invest is the right legal foundation. Legal decisions that you make at the beginning will either provide the foundation upon which your business grows or the anchor that keeps it tied down.