Small business owners in Michigan may be interested to learn about transforming a solopreneurship into a different business structure to compensate for growth. As solopreneurs, 18 million people in the United States are responsible for running a business completely by themselves. This means that everything from fulfilling orders to advertising is done by only one person. If the business becomes successful, these solopreneurs may need to expand.
Although hiring a couple of staff members to help out may be the first thing on a successful solopreneurs mind, it is not the only step that needs to be taken when expanding one’s business. As a company becomes larger and reaches more customers, it could become vulnerable to being sued. Incorporation may be a necessary step for a business owner to take so that they can separate their personal assets from those of the company.
As the business grows and more staff members are hired, a former solopreneur may need to reassess their prior business goals and strategies. Because growth involves working with other people, these former do-it-yourself individuals may also find that they have to relinquish a certain amount of control they once had over decision-making. By letting go in some areas, the business may be able to truly benefit from the skill sets offered by new staff members.
When thinking about expanding a small business, a solopreneur may want to speak with an attorney about business planning strategies. After reviewing the relevant documentation, an attorney may be able to discuss the various business structures that might help a client continue growing his or her business.
Source: SBA.gov, “How to Take Your Solopreneurship to the Next Level”, Anita Campbell, September 18, 2014