The Importance of Running Your Business in a Business-like Way

I have been practicing law for over 25 years and the attitude I have seen that most disturbs me is that running your business is a chore that the business owner should not have to do. I have seen this attitude gaining ground over the last few years among a group of young entrepreneurs calling themselves ‘digital nomads’.

This is one of the biggest mistakes you can make!

When you start a business you are going to have to do a lot of things that may have nothing to do with what you consider is your business. You are going to need to keep a good set of books so that you know how much money you are making, what are your costs, who owes you money, who do you owe money to, how much do you have to pay in taxes, etc. You should sit down and understand what is the best type of business entity for you to use to operate your business. You should try to understand the risks you are going to face. Can someone sue you? For what? Who might that be? Will it be your clients, yours suppliers, your partners, your family, total strangers? Will you have to sue them? What type of contracts are you going to need? How can you manage all that risk so that you do not lose everything you are working for?

If these are questions you do not want to think about, I advise you to do one of two things: